Who Qualifies for a VA Loan?

There are several different eligibility requirements you must meet to qualify for a VA Loan. If you are not sure if you will qualify, you should speak with a mortgage broker or a VA Loan Specialist. One of the first steps toward getting a VA Loan is to complete a Certificate of Eligibility.

You may qualify for a VA Loan if you fall into one of the following categories:

• Active-duty Veterans discharged during WWII or later, without the status of "dishonorable"
• Active-duty Veterans with at least 90 consecutive days of service during major conflict
• Peacetime Veterans and active-duty personnel with at least 180 days of consecutive service
• Enlisted Veterans whose service began after 1980, or officers whose service began after 1981, and who have served at least 2 years.

National Guard and selected Reserve members may also qualify. Check your eligibility with a qualified VA Loan Specialist if you have any questions.

Criteria for determining VA Loan Rates

Every military homeowner who finances their home with a VA loan gets a certain interest rate, as they would with any type of loan. The amount of risk assumed by lender is the main determinant of your interest rate. So borrowers with outstanding credit will get a better interest rate than a borrower whose credit is mediocre.

However, VA loans reduce the risk for lenders even when a borrower's credit isn't perfect. Every VA loan comes with a guarantee from the Department of Veterans Affairs for up to 25% of the loan amount. Because of that guarantee, lenders know that at least that amount will be covered in the unlikely case that a homeowner defaults, meaning the lender takes on less risk. This is why using a VA Loan to finance a home usually equates to getting a better interest rate compared to other programs.

Qualifying for a Low Rate

Often time, mortgage lenders will advertise what they call a teaser rate. This is a rate that is so low, almost no one can actually qualify for it. We believe there is no reason getting future military homeowners excited over a rate that looks unreal or is not realistic for them. We won't specify a rate that's so low everybody wants it, but that almost nobody can get.

The rate you get will differ from the interest rate offered to a different borrower. This is due to a number of things, such as your credit, the VA loan type and the housing market. To help ensure you can qualify for the best rate possible, check out our tips on getting a low interest rate.

Get a Better Look at the Rate You Might Land

For us to give you an idea of the rate you could land, we need to know more about you. Connect with a VA loan specialist who will get an idea of your financial and credit background in addition to your homeownership plans.

What Can I Do with a VA Loan?

You can use your VA Loan to purchase a house, condominium, or townhouse. You can also build a home, make energy-efficient home improvements, or refinance your mortgage.

Why Would I Want A VA Loan?

There are several reasons why a VA Loan may be preferable to a standard loan. Most importantly, if you qualify, you may obtain a VA Loan even if you did not qualify for other loans. There may be no down payment required for a VA Loan, depending on the lender. VA Loans often have lower interest rates than conventional loans, and many times you can negotiate the interest rate with the lender. There are no mortgage insurance premiums on VA Loans, and assumable mortgages are permitted. Closing costs can be lower than other forms of financing, and there is no penalty for prepaying your mortgage. In addition, VA assistance due to temporary financial difficulty is available to those who qualify.

How Much Money Can I Borrow?

The VA does not put a cap on how much money you can borrow. This is determined by the lender, typically a bank, savings and loans, or mortgage company. The basic entitlement of a VA Loan is $36,000, but some loans are eligible for $60,000 if they are over $144,000. A lender will often loan up to four times the amount of the basic entitlement without requiring a down payment.

Limit increase! Although there is no set maximum limit the VA allows you to borrow with your entitlement, most lenders and financial institutions will not approve a total of over $417,000. Lenders typically sell VA loans in a secondary market, where the cap for a loan limit is $417,000.

Veterans who have already taken out a VA home loan in the past may be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, many people with prior VA loans may be eligible for more money now than they were previously. Complete our form or call us today to find out if you qualify.

VA Loan History

The VA Home Loan Guaranty Program was established in 1944 to aid Veterans returning from war. The goal of VA Home Loan Benefits was to help Veterans purchase or refinance a home in gratitude for the sacrifices they made by serving our country.

Complete the VA online loan request. This will help you find out how much money you can save on a VA Loan, how to get pre-approved, and can provide you with free advice and assistance regarding your VA Loan. They can also educate you on current VA Loan rates.