VA Loans: Is Every Veteran Eligible?

VA-mortgage-loansWhile applying for VA loans in Texas or any other state of the US, it is likely that the lender will check your credit rating with three major credit agencies—Equifax, Trans Union, and Experian. Before you head start your VA loan process, it is important that you consult your credit counsellor to how to fix your credit report issues that may work as an impediment during the process of credit check by the mortgage company. Here are some of the common errors that you need to avoid:

  • Clerical errors or erroneous information
  • Bad credit information connected to identity theft
  • Old credit issues such as unpaid debts

Getting your VA Home Loan Approved

VA Homes loans have helped millions of US Veterans and their surviving spouses get finances to realise the dream of their homeownership. However, like every other loan, to be eligible for VA loans applicants must fulfil several service requirements, such as:

  • Borrower should be an eligible veteran with a VA loan entitlement
  • The purpose of your loan should be justified under VA rules for lenders
  • The debt-to-income ratio of the borrower shouldn’t exceed 41%
  • The borrower intent to live in the property for which he is applying for loan
  • Potential buyers must satisfy one of the service requirements set forth by the Department of Veterans Affair
  • Following service requirements, applicants also need to acquire a Certificate of Eligibility (COE). VA approved lenders look for COE to verify your eligibility for the loan.

VA loan Service Requirements- An Overview

Service requirement is categorized under two terms- wartime and peacetime. Veterans who fall under wartime category must have been active on duty for minimum 90 days. Whereas, Veterans under the category of peacetime Veterans must have served during peacetime for at least 181 days. In addition, veterans of the National Guard or Reserves must have served for minimum 6 years or as stipulated under VA Loan guidelines.

VA Loans: Some Finer Details

If you take care of all these prerequisites, you increase your chances for VA loan approval. But did you know that there is no penalty for early pay-offs for VA loan. Also you can extend the maturity date of a VA guaranteed loan to minimize your monthly installments under stipulated guidelines. Other things you may not know include:

  • The borrower can also sell the property at any time, only if the buyer meets all requirements under VA loan and the lender’s guidelines in Texas.
  • Though interested buyers need to fulfil certain credit and income criteria, the Department of Veterans Affair do not impose any minimum credit score.
  • Although VA loan requires 41% DTI ratio, lenders may allow for higher DTI ratio.


Buying home is an investment that grows in value in course of time. The buying process may look intimidating in the beginning, but taking assistance of a professional loan officer can get you through the process easily. In case of query, do not hesitate to ask questions from your VA approved lender.


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