13 Things To Know About VA Loans
13 Things To Know About VA Loans
13 Things To Know About VA LoansIf you are a thinking about buying a home and are a first time home buyer, you might want to see if you are eligible for a VA loan. If you are eligible for VA loans, you may want to know what the next step is to get a VA loan. Obviously you must meet the duration of service requirement as active duty, reservist or spouse of military personnel. However, there are several other things to know before you try to get a VA loan. In fact, here is a list of 13 tips to help you get your first time home buyer VA loan. 1. Meet one of four initial eligibility requirements, or possibly a conditional fifth criteria:-National Guard/Reserve members must have a minimum of six years duty prior to applying for a VA loan. -Regular active duty members may apply after service of 181 days, or 90 days for the Gulf War. -Retired Veterans must have completed 181 days of service, or 90 days for the Gulf War, and received an honorable discharge. -Surviving spouses may be eligible if they remarry on/after age 57, and on/after 12/16/2003. -Un-remarried spouses may be eligible if any of the following apply: spouse was a veteran who died while serving or whose death was related to service-inflicted disabilities, or whose spouse is MIA or a POW. 2. Consider your credit score. A good credit score is especially important for obtaining a new VA home loan. The minimum recommended credit score for a VA loan is 620. 3. Reduce your debt to income ratio to 41 percent. As with your credit scores, having lower debt enhances your eligibility to get a VA loan. 4. Determine your ability to afford the monthly VA loan payment. In addition to being able to afford your VA loan payment you must also be able to pay your existing consumer debt payments and afford a minimum standard of living (as determined by the US Department of Veteran Affairs. 5. Realize that once you meet the eligibility requirement for a VA loan, you also have an entitlement to a first time home buyer VA loan. This means the VA guarantees your loan. 6. Understand the advantages of VA loans. These include no money down, no private mortgage insurance required, and potential interest rate reductions. 7. Determine what you need/want in your first home. Consider size, features, location, and other related details. This will help you concentrate your house hunting. 8. Ascertain your VA home loan limit. This designation is based on county, city and state in which the property is located in. Knowing this limit will likewise help you focus your house hunting efforts. 9. Decide if you prefer and/or can manage a 15-year or a 30-year VA mortgage payment. Your monthly payment can vary by as much as $200 or more, for example, for a $100,000 VA loan. 10. Realize you may include up to $6,000 for energy efficient improvements in your VA loan, as long as the improvements offer direct benefits and savings to you as the borrower. 11. Prepare and organize all needed paperwork for the application. This will help expedite the process. You will need to cover the following details: all personal contact info and details for the primary borrower, such as social security number; employment information; income details, including a monthly average; gross income before tax deductions; other income; and assets and debts, including monthly debt payments. 12. Obtain a VA loan pre-approval. This step verifies all your financial information and creditworthiness. This also verifies the total amount you can borrow and gives the seller the confidence that you are a serious buyer. 13. Apply for a VA loan using the VA home loan application. Use the Long Loan Application, not the short application, and accurately complete all portions. Remember that VA loans require no down payment, so leave that section blank. Follow these tips about VA loans to get your first time home buyer loan. Find the best home for you and your family, then enjoy owning your first home.