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What is a VA Loan?
May 01, 2019 at 1:58pm | Jasmin Bradley
The VA loan is probably known to be one of the best loan programs out there. This week we're breaking down the VA loan, credit approval requirements, down payment, and so much more! We think it's the strongest and easiest transaction for home buyers.
This type of loan is going to be more beneficial for the veterans, active duty, surviving spouses, and sometimes civilians.
What to know about the VA loan?
The VA loan is a zero-down loan. What does that mean? It means the only expenses that you're going to have is the home inspection, home appraisal, and other small fees to get you ready to close. Other than that, it is a 0% down payment.
How to qualify?
The requirements are really for you to be a veteran of the armed service. If you are active duty personnel, it is required that you have completed basic training, AIT, and have been in service for at least 90 days to qualify for the loan. Once
you choose a lender, that lender can pull up the VA eligibility that you may have. Civilian family members of veterans or active duty personnel could also be eligible for a VA loan.
Credit Approval Requirements
For the VA loan, you still need to be credit approved. That is one of the most common myths that we've come across when speaking with clients. Having served or currently serving in the armed services doesn't automatically grant you loan approval.
Make sure you get in touch with a bank that will help you take the necessary steps to get you credit approved.
The base credit score requirement to qualify for the VA loan is a score of about 580. But if you are going with just a standard bank, it is a score of at least 620.
(Be sure to check with your local lender as this is a rough estimate based on our experience with clients.)
Keep in mind that all banks are not created equal. Some lenders are very, very familiar with the VA process while others are not. It would be beneficial for you to contact your realtor and let them inform you of VA-friendly lenders.
Always make sure you do your research or contact your local realtor and they will do the research for you. You will also always need a lender. So definitely speak with your lender as well for more information.
If you're interested in learning more about the different loan types, be sure to subscribe to our YouTube channel or follow our podcast on Spotify, iTunes, or Google Play Music so you can get notified about more information like this!