What Is A VA Mortgage?
A VA mortgage is a type of loan that is guaranteed by the United States Department of Veterans Affairs. The VA loan program allows an eligible borrower to obtain home financing with less than perfect credit, at the lowest interest available.
The VA loan can be used to purchase a home without a down-payment. Refinancing is also available either to cash out equity or to lower your interest rate and monthly payment.
Determine Your Eligibility For The VA Loan
A VA loan can be granted to a active duty service members, reserve personnel, veterans, spouses of veterans and some civil service employees. To determine if you meet the criteria, see the article Who Has VA Loan Entitlement or call 888-573-4496 (option 2) or use the chat feature.
Credit Needed To Get A VA Loan
Contrary to what most people believe, you do not need to have excellent credit to get a VA home loan.
You can get a VA mortgage with prior bankruptcy, foreclosure or short sale. Currently, the minimum credit score needed for a VA loan is 640.
To learn more about how credit scores work click here.
To learn more about the credit score requirements for a VA loan, click here.
If you have had a bankruptcy, foreclosure or short sale and want to use your VA loan, click here.
Income Requirements For A VA Loan
To obtain loan approval for a Veterans Affairs backed mortgage, you must have stable income. Generally, you will need to have 2 years consistent income. You may not use your GI bill BAH to qualify for a VA loan. However, if you are active duty, you can use your BAH to qualify for the program. If you have investment income or are self employed, you may use this income to qualify. However, you must be able to supply the proper documentation.
There are three types of VA refinance loans. The first type is a Veterans Administration Interest Rate Reduction Loan (VA IRRL). Another type is a VA cash out refinance. The third type is a VA refinance no cash out. Depending on the lender and borrower circumstance, the VA IRRL may not require income documentation or an appraisal. Depending on the current lien type of the property, the VA refinance may be subject to loan to value limitations.
VA Mortgage Interest Rates
Usually, the interest rates offered for the VA loan are much lower than conventional interest rates. VA Home Loan Centers unique program will compare available interest rates and get you the best available. To learn more about the VA Home loan Centers interest rate, click here.
VA Jumbo Loans
A VA loan larger than $417,000 is considered a Jumbo Loan. When using a Jumbo Loan, there are specific requirements depending on the loan amount and property location.To learn more about Jumbo Loans, click here.