Active-duty military and veterans qualify for a VA mortgage according to their service record. However, lenders have minimum credit scores for the programs, and the applicant must qualify to get the mortgage. The programs may provide them with a mortgage without a down payment according to the applicant’s qualifications.
Certification of Eligibility
When military personnel qualify for a VA mortgage, they receive a certificate of eligibility. They must meet the active-duty and war-time eligibility requirements to get the certificate. Until they have achieved this status, they cannot participate in the VA loan program.
The current requirements require service members to be in the military for at least two years with no less than 90 days of active duty. If they have completed 90 days of active-duty but were discharged because of a hardship they will qualify. It is possible to qualify for the loan if they have less than 90 days of service if they were discharged because of a disability.
The surviving spouse of a military member that died in action qualifies for the VA loan program. However, the service member’s death must have been caused by duty-related circumstances. They will be required to get the certificate of eligibility from the local Veterans Affairs’ office.
Getting a Preapproval for a Mortgage
Before the buyer approaches a real estate agent, they should get a preapproval for their VA mortgage. A lender will review the borrower’s income, debt-to-income debt, and their current credit scores. The preapproval defines the total amount the service member could borrow to purchase a home. It is not critical for them to borrow the full amount, and most lenders advise against using the full amount.
Establishing A Down Payment
Some VA mortgage programs eliminate the down payment altogether. However, if the applicant has lower than average credit scores, the lender may require a down payment to secure the loan. Typically, the borrower pays between 10 and 20% down for a home. Buyers can look at Dustin Dimisa’s Twitter to find out more about down payment requirements for a VA mortgage.
Finding a Qualifying Property
The VA mortgage program requires the borrower to find a home that meets the guidelines. The VA program has strict guidelines, and the findings of the property inspection could affect whether the property qualifies. If it doesn’t, the buyer must find a home that does.
Closing the Mortgage
During the mortgage closing, the lender must review all documentation to ensure that the buyer has proper insurance for the property. An attorney reviews the terms of the mortgage to ensure that the lender hasn’t used any predatory lending practices. The lender completes a wire transfer to the seller during the closing according to federal and state regulations.
Military personnel can get a VA loan if they complete the appropriate amount of military service. The mortgages require the property to meet specific guidelines before the lender provides the mortgage. Buyers can get a preapproval for the mortgage and establish the highest loan amount. Military members can learn more about the mortgages by contacting a lender now.