VA loans are a powerful lending option giving Veterans, active-duty service members, and surviving spouses the ability to purchase or refinance a home with major benefits.
As of January 1st, 2020, the VA has changed its loan limit to NO LIMIT! With full entitlement intact, lenders will have different requirements on their loan limits based on your FICO score. At APM, our minimum credit score is just 640 if your loan amount is below the county loan limit. Anything over that is on a case-by-case basis.
The VA home loan has very flexible underwriting guidelines compared to a conventional mortgage and other types of home financing. Credit scores can go as low as 40 points lower than conventional loans, and VA loans have a higher debt-to-income ratio than other types of mortgages.
You can borrow 100% of the home's value or more, with lenient guidelines for 1–4 unit primary residences. Borrowers using the VA loan can purchase immediately with no money down.
VA loans do not require mortgage insurance, even when the homebuyer is putting no money down. As a result, the buyer not only saves cash upfront but can also save thousands over the lifetime of the loan. Plus, the buyer has more purchasing power when shopping for a home.
A down payment is not required on VA home loans, but the borrower does have to pay for closing costs. VA loan closing costs average 1–3% of the loan amount. Sometimes the buyer can receive seller or lender credits or a gift to cover closing costs.
Your VA loan eligibility does not expire and can be used more than once—even after a foreclosure or bankruptcy. Veterans can also have two VA loans at the same time in some situations.
To utilize the VA home loan program, you’ll need to first establish eligibility, or prove that you have earned the benefit. To do so, you’ll need to obtain your Certificate of Eligibility, or COE. We can help you get your COE during the pre-approval process.
Veterans, active-duty service members, and surviving spouses may qualify for a VA loan if they have satisfactory credit, adequate income, and a valid Certificate of Eligibility.
Infographic highlighting who qualifies for a VA Loan, which shows that Veterans, active duty service members qualify if they served 90 consecutive days during wartime, 181 days during peacetime. National Guard or Reserves with 6 plus years of service, or a Spouse of a Service Member who has died int the line of duty or as a result of a service-related disability.