VA loans are one of the most beneficial home loan programs for veterans, and active military members. Although, VA loans do have their share of pros and cons, their advantages are any day more than the cons. You can secure a home with VA mortgage without the need to pay any down payment, and private mortgage insurance, not to forget the perk of low interest rates when compared to conventional loans. Like any other mortgage program, however, VA home loans have certain eligibility requirements. Let’s discuss a few of these requirements in this brief post.
The VA has not set a minimum requirement when it comes to the income of VA applicants, however, it expects you to earn at least an amount of income that is sufficient to meet your monthly expenses. VA applicants must have a minimum residual income to ensure they are able to meet their food, medical, transportation, and other basic needs.
Credit and Other Requirements
VA loans also has certain credit and debt-to-income ratio requirements. The reason is that it is not the VA, but a VA-qualified lender who issues the loan, and wants to ensure that the borrowers have a good credit standing. The credit requirement for VA home loan is still much lenient than when you apply for a conventional loan. Most VA lenders expect you to have a minimum credit score of 620. This figure is not fixed and may differ from one VA lender to another.
VA Loan Limits
Most VA home loan borrowers, as per the current VA rules, can borrow a home loan of up to $424,100. This figure can increase, if you live in an expensive region. Find the VA loan limit for your city and state here.
VA home loans have many other requirements. You have the minimum property requirements, for instance, where in the home you are considering to purchase must be hygienic, safely accessible from the road, and meet other requirements the VA has set. VA loan applicants are also required to pay a funding fee that may range from 0 to 3.15 percent of the total loan amount. By speaking to a loan banking officer, you can learn about VA loan limits in your county, property, and other requirements.