If you are an active-duty or veteran military service member considering buying a home, you might be looking into a VA Home Loan for its many benefits. But the question still comes down to: “How do I know if I qualify?”
If you’re unfamiliar with VA Home Loans, they are backed by the U.S. Department of Veteran Affairs and serve to benefit active-duty and veteran service members and their spouses. Some of the main perks are no down payment requirement, more flexible credit requirements, and lower interest rates. Read on to find out if you are eligible to apply and qualify for a VA Home Loan.
In order to be eligible to apply for a loan, you must be entitled to a Certificate of Eligibility based on your service in the military. Some of the main ways to obtain a Certificate of Eligibility are:
- Completing 90 days of active service or six years in the National Guard or Selected Service
- Meeting length-of-service requirements for both active-duty and veterans
After receiving your application, approved lenders will review your credit, debt, and income to determine both potential interest rates and whether or not you qualify for a VA Home Loan.
Although the VA does not set a minimum credit requirement, most lenders will set their own minimum standards so it is best to contact your lender and ask about their specific requirements. Typically, a down payment is also not required when purchasing a new home.
VA Loan Refinancing
The requirements are a little different when it comes to refinancing. There are two main types of refinancing: Streamline and Cash-Out. Streamline Refinancing focuses more on lowering your interest rates and payments, while Cash-Out allows you to tap into your home’s equity and put funds in your pocket for home improvements or emergency situations.
What Are You Waiting For?
If a VA Home Loan or Refinance sounds like something you might be interested in learning more about, don’t hesitate to contact the team at VA Home Loans Idaho. We will work with you to answer all of your questions and help you find the best fit for your unique situation!