VA Loan Qualifications and Guidelines

Owning a home is part of the American dream. For qualified military personnel and veterans, no financing tool helps homeownership become a reality better than VA loans. More than 18 million veterans can attest to that.

But since 20 percent of veterans aren’t aware of this exclusive program, it’s important to find out if you qualify for a VA loan how to obtain one.

Qualifying for a VA loan

First find out if you’re eligible for the program. Generally, military members who fit one of the following three categories may qualify:

• Members of the military who served 90 days during war time or 181 days on active duty
• Members who served at least six years in the Reserves or National Guard
• Spouses of those killed in the line of duty

If you fall into any of these categories, complete a Certificate of Eligibility from the VA website. The COE just confirms that you can qualify for the program. Almost 80 percent of borrowers who qualified for a VA loan would not qualify for conventional financing, so pursuing a VA loan is most beneficial.

Guidelines for VA loan applicants

Unlike conventional loans, VA loans do not have any credit requirements. However, despite the VA’s lax credit rules, lenders who issue the loans look for credit scores of about 620.

Imperfect credit won’t disqualify you from the program, and neither will a history of foreclosure or bankruptcy. Consult a VA-certified lender to determine if you still qualify.

When applying for a VA loan, try to have an idea of the property you’d like to finance. In most of the country, qualified borrowers can purchase a home worth $417,000 without putting a penny down.

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