How Do I Qualify for a VA Loan?
VA has Loan Options for Veterans Purchasing Homes:
In just a few minutes you can be on your way to qualifying for a Veterans Administration loan with LendPlus Financial Group. We have all the resources you need. Once approved, you can start looking for a home or continue the loan process towards final approval and completion.
There are 4 factors to consider when qualifying for a VA Loan:
You don’t have to have great credit to qualify for a VA Loan. In fact, lenders will look at the underwriter guidelines set forth by the VA for qualifying with regards to credit score. Most often you just need a 620 minimum score. The next things that lenders consider is a timeline of the last 12 months to make sure you’ve been timely with all your payments. If you happen to have a single late payment, it won’t disqualify you, but lenders want to know you are on top of your credit and may require that you provide an explanation of the single late payment. This just means providing a letter.
The underwriters evaluating the VA loan requirements will want you to not only have enough money to make your mortgage payment each month, but will additionally want you to have money left over for what is called cash reserves. This is your money and is proof that you will have enough of a buffer to cover payments at anytime in the future. This is called your residual income and there is a minimum requirement depending upon your location and family size.
Like any bank, the underwriter will want to make sure you can prove employment. The VA likes it when you are employed – it makes you an attractive borrower when they know you have steady income. Two years of consecutive monthly income, is a standard basis. for providing income stability when making a house payment. There are circumstances where VA will allow for less than 2 years, but you will need a good explanation and documentation to support it. A case example could be that you were in school learning to get a higher degree and you have started your career in that field and it has been less than two years. A letter of explanation and some education transcripts will usually solve that issue.
Many people, these days have had to complete a bankruptcy because of the economy or health challenges. If you’ve had one – don’t fret, it’s not the end of your VA loan approval journey. You may have to wait a while before you purchase and a loan agent at LendPlus Financial Group can walk you thru the steps and what you need to do to achieve home ownership. Currently, the VA requires that you’re two years removed from a Chapter 7 Bankruptcy discharge and 1 year removed from a Chapter 13 discharge. Additionally, the VA requires that you’ve had no late payments while paying off a Chapter 13 Bankruptcy. Underwriters look at the discharge date from your bankruptcy to evaluate your timeline from when you get the bankruptcy to the time they can allow you to purchase. Consult one of our seasoned team members to see where you stand.
Let get started in helping you get into a wonderful home.