Know the Requirements for a VA Loan

Sunday, November 13, 2016
Posted by admin under Mortgage Loans 

A soldier holds a minature house.


Qualifying for a personal loan can sometimes be difficult, but those who fulfill certain requirements can get loans for the important needs they have. Sometimes good people fall on hard times and don't always fit the prescribed mold in qualifying for a loan, but most financial institutions do their very best not to let temporary circumstances immediately disqualify a person for a loan.

Fortunately, for those who serve their country in the U.S. Armed Services, those who administer loans for veterans realize that sometimes when things look bad on paper they don't always tell the full story. Loans in Vermilion County, IL are available for veterans who otherwise would fall short of standard requirements. The financial professionals at Catlin Bank would like to make you aware of these Veteran's Administration loan requirements.

Who Qualifies


Those who are currently serving in the Armed Services or have served in the past can apply for a loan. Also, spouses of deceased veterans may apply as well. Contact a lender to learn what documentation you'll need to have with you when you apply.

 

Armed Service Time Requirements


There are some service time minimum requirements. One of the following requirements must be fulfilled:
  •  Wartime Service Requirements--You need to have served 90 consecutive days of active service.
  •  Peacetime Service Requirements--You need to have served 181 days. 
  •  National Guard and Reserve Requirements--If you have more than 6 years of service in the National Guard or Reserves, you can apply. 

Spouse of Veteran 


Spouses of deceased veterans who died in the line of duty or as a result of a service-related disability may apply for a loan. As a spouse, your lender can supply you with all the information regarding these requirements. 

Homebuyers


Loans for homes are available with no money down and for those with lower credit scores. The loans are 100% financed. Also, the VA does not require that borrowers maintain mortgage insurance as do other loan programs. Contact your lender for details. 

Income Requirements


An income threshold is not required for homebuyers to use loan benefits. A stable income adequate for making the monthly payments and expenses, however, will be required. The Veterans Administration requires a certain amount of income leftover after payments are made to cover basic living expenses. This requirement is also in place to help borrowers cover emergency financial obligations. This extra cushion of funds is referred to as residual income. The VA boasts one of the lowest foreclosure rates because of this requirement.  
 

VA Certificate of Eligibility


Before any VA application for a loan is complete a Certificate of Eligibility must be obtained. The certificate verifies that your service and service time meet the requirements for the loan. You can start the application process before the certificate is obtained, but you should download the application (VA Form 26-1880) from the VA website as soon as you begin the process. 

A child welcomes home her father.

So, if you have served your country, are serving right now, or are the spouse of a deceased veteran, find out if you qualify for a loan that is right for you. You've served your country; now, see if a Catlin Bank can serve you.  
 

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