For VA home loan purposes, a veteran is a person who has served or is currently serving on active duty in the United States Military or Coast Guard, and who was discharged or released from active duty under conditions other than dishonorable. Un-remarried surviving spouses of an eligible service member who died as a result of service or service-related injuries may also be eligible.
Veterans must have Certificate of Eligibility (COE). This is a formal document that explains your entitlements, through the Department of Veterans Affairs. It must have sufficient entitlement to meet the minimum 25% guaranty. The length of service requirements vary depending on if the veteran served during wartime or peacetime, and depending on when he/she served.
One of the primary benefits of VA loans is that you are not required to meet a minimum income threshold to be eligible. However, you’re expected to have a steady, reliable source of income to cover your monthly expenses including your mortgage payments.
The VA also requires borrowers to have a certain amount of income left over each month (residual income) after all of your major expenses have been paid. This is to ensure that borrowers will be able to cover other general household needs such as food and transportation each month. This residual income requirement helps VA loans have one of the lowest foreclosure rates of the major lending option.
VA loans help you avoid the common mistake of buying a home that you cannot afford.
In addition the VA guidelines for VA loan benefits, private lenders who finance the purchase of the home have their own requirements borrowers must meet.
At First meridian, we can do VA loans with the following credit, also this can vary lender to lender.
Find out whether or not you qualify for a VA loan by calling First Meridian today at 703-799-5626! Our loan officers are here to help you get into your home in Maryland, Washington DC and Virginia.