Because of Coast Guard Island we see a lot of military in Alameda, Berkeley, Oakland, and Emeryville. The funny thing is when it comes to home buying there seems to be a lot of confusion about VA Mortgage Home Loan Financing. A big question real estate agents frequently ask is:
"Who is eligible for VA financing?"
Here is a basic rundown on times of service pertaining to VA Home Loan Mortgage Eligibility:
Veterans and active duty military personnel who served during peacetime must have had more than 180 days of active service. Veterans of enlisted service starting after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
Veterans with active duty service (who were not dishonorably discharged) during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.
Since early 2010, most VA lenders in the U.S. have tightened their lending and credit score requirements, making home financing harder to come by for those with credit issues.
As a result of the credit crisis, getting a loan without a down payment is more difficult, making the VA loan one of the few remaining options for 100% financing. Although the VA does not require you to have a specific credit score, many lenders have generally set their minimum credit score requirement at 620.
There are three specific pieces of documentation a lender will need to determine your eligibility:
- A DD214 for discharged veterans.
- A statement of service for active military personnel.
- A certificate of eligibility (COE) to determine you have VA entitlement.
During the preapproval process we will look at credit scores and debt to income ratios, as well as specific lender eligibility requirements, to determine which loan is the right one for you.
Many people have asked- can I still qualify for a VA loan if I have either had a divorce, filed bankruptcy, or had a previous home go into foreclosure... and the good news is you are not immediately disqualified from a VA loan, although there are some additional restrictions.
If you or someone you know is looking to explore their options with VA financing feel free to contact us, we are here to help you and we love serving those who serve.
Other VA posts you may be interested in:
VA Mortgage Loans in Alameda, CA, a Piece of Island History
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