Can I Get a VA Loan?
A VA loan is a mortgage subsidized and covered by the federal government, Department of Veterans Affairs, and granted to members of the U.S. military personnel honorably or medically dismissed, including their spouses. The advantage of getting this type of loan is that it has lower interest rates and it does not require you to pay a down payment or initial investment. Applying for a VA loan is not different from other types of loans. The usual procedure applies, the veteran has to apply for the loan and go through the lender’s credit requirements. If you want to get a VA guaranteed home loan, there are steps to consider in the road to obtaining this loan.
The first thing to do is to check your military record. Generally speaking, you are eligible for this type of loan if you have completed a minimum of 181 days during peace time or 90 days or 90 days throughout the war time as an active duty member military. National Guard and Reservist personnel who served 6 years or more are also eligible. Desert Storm veterans are qualified to get VA loan no matter how long they served in active duty or reserve service. Unmarried surviving spouses of veterans that were killed during active service are also eligible.
The veteran must provide a VA certificate of eligibility which can be ordered from the VA. Lenders can make a request to get this form. But before you order this form, you should secure a copy of the DD Form 214 indicating honorable or acceptable medical dismissal. If you are still in active duty, you need to provide a “Statement of Service” which you can obtain from your personnel office on the military base you are attached on.
Similar to conventional loans, VA follows certain guidelines that determine admissible income-to-debt-ratios. So, there is a need to be prequalified for the loan. Like other types of mortgages, you will need to be qualified to avail a VA loan because being eligible does not mean you are already qualified. Not every military professional will qualify for the loan. To avail this program, you must have a stable income and job history. The lender will verify your employment, income and credit history. So it is important to have reasonably good credit standing. VA will allow a standard 41 – 45% of your pretax monthly earnings to go with your credit debts and new house payment plan.
In addition, VA looks on alimony, child care and child support expense as circulating debt when qualifying you for a VA loan. Family size is also another thing VA considers. Having more dependents will qualify a veteran for less of a loan amount. VA also has another formula; a more complex formula that they use to make sure your income is enough to avail the loan. To determining your maximum house payment, VA will consider the lower payment from the two formulas. Providing all the paperwork needed for this loan and becoming prequalified are important steps in getting a VA loan.
Author: Alvin Clavines
Article Source: EzineArticles.com
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