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4 Keys to VA Home Loans


A Zero-Down VA Loan Could Be Yours in Just 4 Qualifying Steps

If you’re looking to buy a new home, VA loans may be a good option. Getting approved means meeting some basic qualifying requirements first. Stripping it down to the bare essentials, these four keys could open the door to loan approval and homeownership:

1. The Two E’s

ELIGIBILITY and ENTITLEMENT go together and are the first VA home loan requirements. Each must be present in order for eligible borrowers to begin the application process for a VA loan. Both can be determined by an experienced loan professional after looking at a borrower’s Certificate of Eligibility (COE). The COE document will tell the lender if the borrower is eligible, and whether there is enough entitlement to support a loan. Borrowers must meet service and/or survivor requirements in order to receive a COE. Your loan officer can help you obtain one.

2. Purpose

A second subject of scrutiny for VA home loan eligibility is the property itself. The home being financed through military benefits must be intended for an eligible PURPOSE and meet the VA’s minimum property requirements. So, what does that mean exactly? VA loans can be used to purchase or refinance single-family residences, townhomes, condominium units in VA-approved complexes with up to four multifamily units per borrower (borrower must reside in one unit), and certain manufactured homes. All properties financed must be affixed to a permanent foundation and pass VA appraisal for value and safety.

3. Occupancy

VA home loans are intended to finance homes for borrowers to use as primary residences. Generally, VA occupancy requirements can be met if the borrower certifies their intent to occupy and moves in within 60 days of closing. If the borrower is serving away from home, their spouse or a dependent child can satisfy occupancy requirements, or the borrower can ask for an extension of up to 12 months.

4. Stability

The final key, STABILITY, has to do with a borrower’s ability to pay. The applicant(s) have to show stable and sufficient income and credit in order to qualify for a loan. Lenders have flexibility to define what a safe credit risk is within VA guidelines. Typically, lenders will have minimum credit score requirements and ask for documents to prove all sources of income. Recent bankruptcy and foreclosure can affect a borrower’s ability to qualify, but time can heal credit wounds.

When borrowers meet these four basic requirements for approval, they’re on their way to the dream of homeownership. Your loan amount is based on entitlement and ability to pay. To find out if you have the four keys for mortgage approval, call 1-866-663-0826 to speak with one of our loan specialists. There is no obligation, so call now or click on the form to the right to let us know how you’d like us to contact you.

Fill out this short form and a mortgage expert will get in touch with you.

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