How to Qualify for a VA Home Loan

You might have heard about the various types of loans and mortgages you could get if you’re looking for a new home. VA loans are mortgages that you may qualify for. These are some of the things you need to be able to grab a VA loan:

Military Affiliation

To qualify for VA home loans, you must be affiliated with the military in one way or another. You can qualify if you have at least 90 days of straight wartime. You can also qualify if you have more than six months in active service during a time of peace. Six years of service in the National Guard can also make you eligible for a VA loan. Another way you might be eligible for a VA loan is if you are the widow of someone who died in the line of duty. You could also qualify if your current spouse is disabled because of something that occurred while he or she was on duty.

A Good Credit Score

You will also need a good credit score to qualify for a VA loan. It’s wise to have a credit score of at least 620 points so that you will get the loan you desire. You can do some work to improve your credit score if it’s not yet up to par. You can order a copy of your report and then look over it to see if there are any aspects of it you can fix. You can also pay down some of your existing debt or take care of current collection accounts.

The Ability to Pay the Mortgage

You will have to have the ability to repay the mortgage loan to qualify. That means the lending institutions will want to see pay stubs or governmental assistance stubs. Usually, mortgage companies like to see at least two years of stability. They want to see that you’ve lived at the same residence for at least two years and worked at the same job for at least that long. These entities may also want to see that you can manage the payments by yourself.

A Low Debt to Income Ratio

The debt-to-income ratio aspect is something that trips many people up when they’re trying to get a new home. You must ensure that your debt-to-income ratio is lower than 45 percent. Any higher than that will make the lender leery of providing you with the loan. They will need to feel secure that you can take care of the mortgage if anything happens, such as a job loss or disability. Having a low debt-to-income ratio can fortify that for them. You can work on that by paying down some of your debt so that the DTR goes down to an acceptable level.

Apply for your VA Loan Today

You can apply for a VA loan today if you think you meet all the necessary qualifications. You can work on those aspects if you don’t think you’re quite ready to qualify. Contact a reputable mortgage company and request to get put through the qualification process ASAP.