VA

VA Loan Overview

Created in 1944 under the Servicemen’s Readjustment Act (also known as the GI Bill of Rights), the VA loan helps make housing accessible for veterans and their families.

The program offers up to 100 percent financing, no mortgage insurance, and a 2.15 percent financing fee for loans up to $417,000. Loan amounts greater than this benchmark are subject to certain fees and a higher down payment.

For more information, go to www.homeloans.va.gov.

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Veteran Qualifications

The terms of qualification are determined by the Certificate of Eligibility issued by the VA Department. General guidelines are listed below:

Veterans who served a minimum of 90 days during wartime or 181 days during peacetime. (Note: two year service time requirement if born after Sept. 7, 1980 or Oct. 16, 1981 as an officer).

Spouse of deceased veteran qualifies in certain cases.

6 year requirement for National guards and reservists under certain criteria.

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Eligibility

Personal financial requirements and qualifying property specifications:

Minimum credit score: 580.

Debt-to-income ratio (DTI): 41 percent.

Purchase must be owner-occupied property.

Singe-family housing.

Up to $417,000 in financing with 2.15 percent funding fee. For larger loans, special conditions may apply.

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Special Features

Reduced fee program. Disabled veterans may be eligible to waive fees.

No down payment.

No mortgage insurance required.

Greater leniency: greater forgiveness for derogatory credit items.