On Memorial Day, we take the time to specifically remember all those who have sacrificed their lives for this country. They fought to provide us with the freedoms we enjoy today and we are forever grateful.
As a nation, the United States seeks to provide benefits for its veterans. One of the methods the government seeks to do this is through the VA loan program. It enables more veterans to afford and purchase a home. The Department of Veteran Affairs insures the loan. Unlike the case for most people purchasing a home, veterans will not have to make a down payment or buy their own mortgage insurance.
The qualifications for the VA loan program are:
- An individual who has served 90 successive days during a war or 181 days while the country is at peace (determined by the VA).
- A national guardsmen, women, or reservist who has served for six years.
- Any vet who was wounded during service, whether or not they meet the longevity criteria.
- A husband or wife whose spouse was killed or wounded in action that is not already receiving Dependency and Indemnity Compensation.
If eligible, evidence will need to be submitted to the U.S. Department of Veteran Affairs in order to receive a Certificate of Eligibility (COE). The COE will attest that you meet the criteria and can receive a VA-backed loan.
Aside from these qualifications, there are a number of other requirements that a veteran has to meet to be eligible for the VA loan program.
- The VA and lenders have set standards for the veterans credit score and their debt-to-income percentage.
- The loan program can only be used for a veteran’s primary residence. It cannot be used for investment properties or vacation homes. To ensure this, the VA has occupancy requirements.
- The home has to be inspected by the VA.
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