VA Mortgage | Borrower Requirements
- A veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable after either:
- 90 days or more, any part of which occurred during wartime, or
- 181 continuous days or more (peacetime).
- 2-year Requirement: A greater length of service is required for veterans who: enlisted (and service began) after September 7, 1980, or entered service as an officer after October 16, 1981.
- These veterans must have completed either:
- 24 continuous months of active duty, or the full period for which called or ordered to active duty, but not less than
- 90 days (any part during wartime) or 181 continuous days (peacetime).
Note: Cases involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
- Minimum 620 Credit Score
- Debt to Income ratios per automated underwriting approval
- Maximum 41% DTI for Manual Underwriting
- Owner Occupied only – borrower must live in the home as a primary residence
- Full income / asset documentation only – W2 and/or tax returns
- No down payment required
- No minimum borrower contribution required
- Approved buyer assistance can be used up to 100% combined loan to value
VA Mortgage | Loan Terms
- 30 Year Fixed
- 15 Year Fixed
- Up to 2.15% Guarantee Fee can be financed into loan – Guarantee fee will vary with down payment amount and number of times benefit used. No guarantee fee for eligible disabled veterans
VA Mortgage | Property Requirements
Properties eligible for VA finaning include:
- 1 family residence – single family residence (SFR)
- 2 family residence – duplex (owner must occupy one unit)
- 3 family residence – triplex (owner must occupy one unit)
- 4 family residence – fourplex (owner must occupy one unit)
- Single family Condominium – with HOA approval
- Single family Townhouse – with HOA approval
VA Mortgage | Loan Limits
VA loan amounts greater than $417,000 are now based on the 2012 MSA Limits.
Purchase: Maximum loan amount at 100% LTV/CLTV with full entitlement is up to $625,500, depending on county.
Refinance: Maximum 90% LTV/CLTV based on the property value indicated on the CRV/NOV plus the cost of any energy efficiency improvements plus the VA funding fee. There must be a lien of record and the veteran must occupy the property.
- The maximum guaranty for loan amounts greater than $417,000 vary depending upon the location of the property.
- Maximum loan amount cannot exceed the lesser of the VA County Loan Limit or Notice of Value (NOV).
Loan amounts up to $1,500,000 are allowed as long as the VA guaranty or a combination of the VA guaranty plus borrower’s down payment and/or equity, equal to at least 25% of the lesser of the sales price or the subject property’s reasonable value as documented in the NOV. The maximum guaranty on a VA loan is the lesser of the veteran’s available entitlement or the maximum potential guaranty amount indicated above.
The maximum guaranty for loan amounts > $417,000 varies depending upon the location of the property.
VA Mortgage | Waiting Periods after Credit Hardship
- 2 Years from Discharge of Chapter 7 Bankruptcy
- Chapter 13 – If you have satisfactorily made at least 12 months worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
- 2 Years from Foreclosure, Short Sale or Deed in Lieu of Foreclosure