What does a VA Home Loan offer?

If you are thinking about buying a house and you are unsure of whether a VA Loan is right for you, we can give you detailed and current information to help you make the best decision possible.

Here is a quick glimpse at what the VA Loan offers:

NO down payment

No Private mortgage insurance

Relaxed credit qualifications

All-time low interest rates

All costs involved in getting the loan can be paid by the seller and negotiated into the price so it is possible that $0 cash would be needed to close.

100% Cash Out Refinance now available – if you already own your home and need cash for home improvements or debt consolidation (or anything), you may qualify for a new VA mortgage up to the amount your house appraises for.

Sound Interesting? If so, you can begin the process by filling out the online loan application or contacting us to get started. We can then determine your eligibility, how much you’re qualified for and the next step in the VA Loan Process.

Here are the basic eligibility requirements for a VA Loan:

Did you Serve at least 90 days or more active duty service during wartime, or
Did you serve at least 181 days or more of active duty during peacetime?
You must have been honorably discharged, or
You are active duty and meet the above requirements.
Or, You are the surviving spouse of a veteran who died during service or because of service-related injuries and you have not remarried

If you're a reservist, you will need six years of service and an honorable discharge – OR – if you've been deployed for 90 days or more in a combat zone, then you will be eligible for a VA Loan. You can visit http://www.homeloans.va.gov/eligibility.htm to learn more if your situation differs.

Once we have established that you are eligible, now comes the other question – do you qualify for a VA Loan? The fastest and easiest way to determine your eligibility is by meeting with a VA Approved lender, like Classic Home Loans. You can speak with one of our knowledgable Mortgage Loan Originators who can let you know if you are eligible, how much you qualify for, and advise you of your options.

Factors to Consider when qualifying for a VA Loan:

Credit

You don't have to have great credit to qualify for a VA Loan. Lenders will vary on what they are looking for credit score-wise, but most require a 600 minimum score. Lenders are going to look at your last 12 months to make sure you've been timely with all your payments as well. One late payment won't disqualify you, but lenders want to know you are on top of your credit. Lower credit scores may be considered on a case-by-case basis.

Employment

The VA likes it when you are employed – it makes you an attractive borrower when they know you have steady income and it's been that way for 2 consecutive years. There are circumstances where VA will allow for less than 2 years, but you will need a good explanation and documentation to support it. However, if you are retired or disabled and receive income you would still qualify without having a job as long as your income is adequate.

Income

The VA wants you to not only have enough money to make your mortgage payment each month, but they want you to have money left over after everything has been paid as well. This is called your residual income and there is a minimum requirement depending upon your location and family size.

Bankruptcy

If you've had one – don't worry, it's not the end of your VA quest – you just have to wait. VA requires at least 2 years from a Chapter 7 Bankruptcy discharge and 1 year from a Chapter 13 discharge. Also, VA requires that you've had no late payments while paying off a Chapter 13 Bankruptcy.

If you are confident that you'll have no problem qualifying for a VA Loan, then the next step is to contact a Classic Home Loans Originator to get started on your Pre-Qualification and approval.