Qualifying
for Veteran Home Loans
The VA does not have a
minimum credit score used for pre-qualifying for a mortgage loan, however, most
Lenders require a minimum credit score of at least 620.
A Veteran who has used their
entitlement to previously purchase a home, may have entitlement left to
purchase another one. If you previously purchased a home using your VA Benefits
then you might still have some of that “Entitlement” available to you for the
purchase a new home! To Calculate Maximum Entitlement available, consider the
following:
If your previous home was
purchased using a VA Loan, and that loan was paid off by the new owners, the
full entitlement may have been restored.
If you sold your home to
someone, and allowed them to ASSUME your VA Loan, then you might have the full
entitlement restored, if one or more of the purchasers were also Veterans.
If you still own the home, and
you are renting it out – you might be able to purchase a new home using your
partial entitlement, but there are several restrictions.
Allowable Income Sources used
to qualify for a VA Loan include: Retirement Income, Social Security Income,
Child Support, Alimony and Separate Maintenance, BAH, BAS and Disability
Income. Dependency and Indemnity Compensation (DIC)for a Surviving Spouse can
also be included. In addition, stable, documented income from employers remains
the best income source for VA loans.
VA Loan application
The VA loan application is a standardized loan application form 1003 issued by Fannie Mae also known as Freddie Mac Form 65. It is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements on a VA loan application under the provisions of Title 18, United States Code, Section 1001, et seq. The only document you need in addition to a standard loan, is the DD 214 or Certificate of Guarantee