VA home loans are a benefit designed for those who have served our country and for their spouses.
VA loan qualifications are more flexible, allowing those who may not qualify for a traditional home loan the chance to fulfill the goal of homeownership.
What's in this article?
Read on to learn more about VA home loan requirements, including what it takes to qualify and how to apply.
Who can get a VA loan?
VA loans are designed exclusively for active-duty service members, veterans and surviving spouses.
The loans are backed by the U.S. Department of Veterans Affairs. A government-backed loan protects lenders if a borrower cannot repay their loan. As a result, lenders can offer eligible borrowers more benefits.
In exchange, borrowers must meet certain eligibility requirements, including time served in the armed forces.
To get a VA loan, you must find a VA-approved lender who offers these loans. Fortunately, many lenders offer this type of loan. Make sure you select an experienced, trustworthy loan officer to guide you through the VA loan process.
Compass Mortgage is proud to offer VA loans to eligible borrowers. Let’s take a look at the VA loan eligibility requirements to see if you qualify.
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VA loan eligibility requirements
Eligible borrowers qualify for a VA loan based on their service history and duty status, as well as individual lender requirements.
To prove to a lender that you qualify based on your service, you will have to request a Certificate of Eligibility (COE) from the VA. Your lender can help you with this step.
The COE will confirm that you meet one of the following minimum service requirements:
- You are on active duty and have served for at least 90 continuous days (all at once, without a break in service).
- You are a veteran who meets the minimum active-duty service requirements, which usually is 90 days in wartime and 181 days in peacetime.
- You completed 90 days of active-duty service or six creditable years in the National Guard or Selected Reserve.
- You are the surviving spouse of a veteran who died in service or from a service-related disability and you have not remarried, or you remarried after age 57 or December 16, 2003.
- You are the spouse of a service member who is missing in action or a prisoner of war.
If you don’t meet the minimum service requirements, you may still be able to qualify if you were discharged for certain reasons, including a hardship or medical condition.
Beyond your COE, there are certain lender requirements you must meet, including credit score and debt-to-income ratio (DTI).
What does my credit score need to be for a VA loan?
The VA doesn’t set a minimum credit score requirement or down payment, but VA mortgage lenders can set their own minimum standards.
A common minimum credit score for conventional loans is 620. Some lenders may require VA loan borrowers to have at least this score, but many often will accept much lower.
Some VA lenders may accept a credit score as low as 580, which may shift higher or lower based on other factors.
What are some other VA loan requirements?
Beyond credit score, many lenders have the following VA loan requirements:
- No minimum down payment
- Documentation of consistent income
- Proof of residual monthly income
- DTI of 41% or less (varies by lender; some accept higher)
- Home must be your primary residence and meet the minimum VA property standards for safety, security and soundness
Borrowers also may have to pay a VA funding fee, which typically ranges from 1.4% to 3.6% of your loan amount and can be paid up front or rolled into your monthly mortgage payment.
The fee ensures the program is financially sustainable for all eligible veterans. Some borrowers, including Purple Heart recipients, may be exempt from paying the fee.
Additionally, closing costs for VA loans cannot exceed 1% of the loan amount.
How to apply for a Certificate of Eligibility
You can apply for your VA loan Certificate of Eligibility through your lender, or you can do it yourself online or via mail.
To apply, you’ll need the following information:
- Veterans need a copy of their discharge or separation papers (DD214).
- Active-duty service members need a statement of service signed by their commander, adjutant or personnel officer that includes the date they entered duty and duration of any lost time.
- National Guard or Selected Reserve members need a copy of their DD214 or other discharge documents.
- Surviving spouses need the veteran’s discharge documents and other documentation that may include their marriage license and spouse’s death certificate.
Your VA lender can help you understand the specific documentation you need for your situation.
How to apply for a VA loan
VA home loan requirements offer numerous benefits to borrowers who qualify, including no down payment and no monthly mortgage insurance.
If you’re interested, apply for a VA loan today. Make sure you’re working with a VA lender who has the experience you need to provide the best loan options.
At Compass Mortgage, we treat our borrowers like family. We value your financing needs and promise to be your advocate and partner throughout every step of the VA loan process.
Your first step to getting a VA loan is to apply for pre-approval. Go a step beyond pre-approval with Compass Mortgage’s distinctive loan commitment program—Get Committed®. This will put you in the best possible position to win the home you truly want.
Get Committed provides a fully underwritten loan commitment and locks in your interest rate before you even find the property you want to buy.
A loan commitment essentially has the power of a cash offer, showing the seller you’re fully approved financially and that your deal isn’t likely to fall through. Get Committed secures the financing for you. This means we can close on your loan in as little as 15 days.
Apply today with Compass Mortgage for an unmatched lending experience from start to finish.
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