Veterans are eligible for a VA home loan according to their service record. The loans are available to all service members who have received their DD 214 forms from their commanders. Reviewing all requirements for VA loans helps soldiers prepare for homeownership and completing a real estate transaction.
They Need a Certificate of Eligibility
The veteran received a certificate of eligibility according to their service records. The eligibility requirements define how much wartime and peacetime service the solider must complete before they are eligible for buying a home through the VA mortgage home loan program. If the solider has the certificate, they can avoid a lot of red tape when buying a home. The lender won’t need to research the borrower’s service record to establish eligibility.
Credit Scores Do Matter
The veteran must review their credit scores before applying for a Veteran’s Affairs mortgage home loan. The borrower must have a qualifying credit score or the lender will deny approval for the loan. All applicants must be creditworthy to get the loans. Currently, veterans can qualify for a VA loan with a credit score of around 620. However, lower credit scores can increase the down payment requirements for securing the loans. The borrower might face higher than average interest rates, too.
Most VA Loans Don’t Require a Down Payment
VA loans don’t always require a down payment. Service members with exemplary credit scores can avoid paying anything down to secure the loan. If they have lower than average credit scores, the veteran will have to pay a down payment of up to 20% for the property.
The Home Must Pass the Inspection
The property of interest must meet all specifications of the VA mortgage home loan program. The property doesn’t have to be brand new, but it cannot have any structural damage or any damage that depreciates the value of the property dramatically. Some lenders won’t allow the purchase if the home is more than ten years old. A more robust inspection is required for VA homes before they are approved by the lender. Veterans will need to review several homes before finding the perfect home for their family.
The Terms of the Sales Contract
Reviewing the terms of the sales contract protects both parties and prevents them from agreeing to terms that aren’t fair. Typically, buyers negotiate to lower the closing costs. Some contingencies apply in real estate transactions that slow down the process. For example if the seller must pay a new home before they move out of their current home. These terms must be met according to the terms of the sales contract.
Veterans who qualify for a DD 214 certificate are eligible for a VA mortgage home loan. The mortgage programs were designed for veterans and military personnel who have served in the armed forces. When using the certificate, the buyer must have the right credit score and income level to get the mortgage. Veterans who want to learn more about the VA loans can check out National Realty Investment Advisors now.
