Must be a primary residence. No investment property or second home ownership is allowed.
VA Credit Eligibility
Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. The VA cut off for credit score requirement is a mid-score of 620. However, if your score is below this number, we could probably help you improve it.
VA Debt-to-Income Ratio (DTI) Eligibility
DTI ratio determines whether the borrower can reasonably be expected to meet the expenses involved with home ownership. This percentage is calculated by adding all the minimum monthly credit payments and dividing them by the gross monthly amount of income.
The maximum ratio allowed to qualify for VA is 41%. However, compensating factors are taken into consideration for ratios slightly over 41%. Some compensating factors include the following:
To qualify, you will need a VA Certificate of Eligibility. If you are a military veteran, we will be happy to help you get one.
General Rules: You are eligible for Veteran home loan - veteran benefits, if you served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and were discharged under conditions other than dishonorable after either:
90 days or more, any part of which occurred during wartime, OR
181 continuous days or more (peacetime)
Two Year Requirement:
If you enlisted (and service began) after September 7, 1980, OR
If you were an officer and service began after October 16, 1981
You must have completed either:
24 continuous months or more, OR
the full period for which ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime)
Wartime and Peacetime: Wartime and Peacetime, as used in the General Rule for Eligibility, refer to the following periods of time:
Wartime
Peacetime
World War II 9/16/40 - 7/25/47 Korean conflict 6/27/50 - 1/31/55 Vietnam era 8/5/64* - 5/7/75 Persian Gulf War 8/2/90 - undetermined
Post-World War II period 7/26/47 - 6/26/50 Post-Korean period 2/1/55 - 8/4/64 Post-Vietnam period 5/8/75 - 8/1/90
* Begins 2/28/61 for individuals who served Republic of Vietnam
You may also be eligible if you:
were discharged for a service-connected disability, or
were discharged for the convenience of the government after completing at least 20 months of a 2-year enlistment, or
completed not less than 90 days (any part during wartime) or 181 continuous days (peacetime), and
were discharged because of a hardship, or
were determined to have a service-connected compensable disability, or
were discharged or released from active duty for a medical condition which pre-existed service and has not been determined to be service-connected, or
received an involuntary discharge or release from active duty for the convenience of the Government as a result of a reduction in force, or
were discharged or released from active duty for a physical or mental condition not characterized as a disability and not the result of misconduct but which did interfere with your performance of duty
are an un-remarried spouse of a veteran who died while in service or from a service connected disability, or
are a spouse of a serviceperson missing in action or a prisoner of war.
Active Duty Personnel: If you are now on active duty, you are eligible after having served on continuous active status for at least 90 days. When an ending date is established for Persian Gulf War service, a minimum of 181 days of continuous active duty will be required for persons who did not have wartime service.
Members of the Select Reserve: “Selected Reserve" means the Selected Reserve of the Ready Reserve of any of the Reserve components which consists of units and individuals who participate actively in paid training periods and serve on paid active duty for training each year.
Six Year Requirement: A veteran, who is not otherwise eligible, who completes a total of 6 years as a member of the Selected Reserve (need not be ordered to active duty) is eligible if he or she either:
received an honorable discharge
was placed on the retired list
was transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service in the Selected Reserve characterized as honorable
continues to serve in the Selected Reserve
The 6 years service need not be continuous nor in the same Reserve or National Guard unit. However, active duty regular military service cannot be combined with Reserve service to reach the 6 year requirement.
Eligibility may Also be Established for:
certain United States citizens who served in the armed forces of a government allied with the United States in World War II
individuals with service as members in certain organizations, such as Public Health Service officers, cadets/midshipmen at service academies, officers of National Oceanic and Atmospheric Administration, merchant seamen with WWII service, and others.
For additional questions regarding any Military Status Eligibility and/or VA Loans Eligibility please contact us.
