Qualifying for a VA Home Loan (2024)

FAQs

What makes me eligible for VA loan? ›

At least 90 days of active-duty service including at least 30 consecutive days (your DD214 must show 32 USC sections 316, 502, 503, 504, or 505 activation), or. 6 creditable years in the National Guard and you were discharged honorably or placed on the retired list.

Common issues that can prevent a home from passing a VA appraisal are: bad roof, peeling exterior paint, rotten wood on decks and stairways, water in the basem*nt, foundation problems, faulty electrical systems, etc. In other words, the home must be in good livable condition and cannot be a “fixer-upper” property.

Active-duty servicemembers and Veterans with discharges other than dishonorable, National Guard and Reserve service members and Veterans with an honorable discharge, certain eligible spouses, and other uniformed service personnel may be eligible for VA home loan guaranty benefits.

The government guarantees these loans, so it's typically easier to qualify since there's less risk for lenders. In fact, it's possible to get a VA loan with no down payment — and you may qualify if your credit isn't strong or you've had a history of foreclosures.

On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.

Some home sellers won't accept VA offers because they mistakenly believe they'll have to pay all of the buyer's closing costs. The VA does limit what closing costs Veterans can pay, which is a huge benefit for those who've served our country.

Red flags include the presence of radon gas, asbestos or lead-based paint within the home, or properties located in a flood zone, near a sinkhole, or proximity to any type of environmental contamination.

In most cases, the refusal of the seller to offer VA financing stems from the listing agent making possible false comments to the seller, or creating a cost fear for the seller, stating “…it will cost you more if the buyer uses their VA eligibility…” or say “it will require you to make certain repairs…”

All veterans discharged under other than dishonorable conditions from at least 90 days of service which began before September 8, 1980, are eligible.

What's the minimum credit score for a VA loan? ›

The VA doesn't set a minimum credit score for VA loans at the program level. Instead, the VA relies on lenders to ensure borrowers are a satisfactory credit risk. VA lenders typically require a FICO score of at least 620. High loan amounts, such as those exceeding $1 million, may require a higher credit score.

Appraisers must note any damage caused by termites, wood-destroying insects, pest infestation, dry rot or any other defects that cause structural issues with the home. The appraiser must look for issues that could make the home less stable and/or put the occupants in harm's way.

About 15% of VA loan applications get denied, so if your's isn't approved, you're not alone. If you're denied during the automated underwriting stage, you may be able to seek approval through manual underwriting.

VA loans include fees specific to this type of mortgage, such as the VA funding fee, which we'll discuss in the next section. You'll have to pay the closing costs when you're signing the final paperwork of your home mortgage process.

There are many reasons VA loans may get denied in the underwriting process. Here we look at the most common and what you can do to mitigate issues as you near closing. If you're here, the odds are you're hoping to prevent any hiccups in the homebuying process, or your VA loan may have just gotten denied.

Minimum Duty Requirements

Most Veterans who enlisted after September 7, 1980, or entered active duty after October 16, 1981, must have served 24 continuous months or the full period for which they were called to active duty to be eligible.