Do I Qualify For a VA Loan

VA loan definitely has more advantages over a non-VA loan. Like for example, you do not have to make the down payments unlike the non-VA loan or you do not even have to insure your VA loan unlike the other loans. Also this loan has much lower rates of interest as compared to the non-VA loans. All this evidently sum up to a huge amount of savings in a year for the borrower. Unquestionably this mortgage loan is very much more lucrative. But then there are few conditions that you have to fulfill before you qualify for a VA loan. Read below to know them.

Before you qualify for VA loan you have see whether you are even eligible for it or not. For this you have to attain a Certificate of Eligibility from the VA department of United States. To attain this certificate you have to fill up a form called the VA Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits. This form is obtainable online at the VA Home Loan government website. After filling the form you must submit it along with your other military documents at a VA Eligibility Center to get the certificate. You can also know your eligibility from lenders who have access to the Certificate of Eligibility through internet. They can easily process your request online and check if you are eligible for it or not.

There is few guiding principle for VA loan eligibility. First you should have served for a minimum period of 90 days during wartime or a minimum of 180 days during peacetime. You are discharged from the services under no dishonorable circumstances, you are currently in job. Or you are surviving spouse of a veteran who died during service or due to injuries during the service period and you are not remarried. Even if you meet all these criteria it does not necessarily mean that you qualify for this loan.

Like every mortgage lender the VA loan lenders will also scrutinize your credit history even though they have more relaxed criteria as compared to the normal lenders. So if you do not have so good credit score but have all your bill payments up to date over a period of the last one year you can qualify for it. Mainly they look for timely repayment options by you. Moreover even if you have declared bankruptcy in the past it does not disqualify you from its sanction.

They will scrutinize the circumstances under which you had to declare it like sudden business failure or it is due to carelessness in money management. Bottom line is they will see your credit history before you declared bankruptcy to make out whether it was under genuine circumstances or not and they support it under genuine circumstances. And also the period when you are applying for this loan it should be a minimum of two years after declaring bankruptcy.

They will also see that you had a stable employment history for at least the last two years and currently employed with a steady job. Also they will ensure whether you can easily afford to repay the debts in time and to its completion or not. And last but not the least you have a authentic need for it like for purchasing house, townhouse or any other mentioned reasons in the criteria.