Categorized | Financial

Requirements for VA Loan Approval

One outstanding thing about VA loans, is its easy approval process. However, it is important to understand what the process entails to ensure success. The VA lender’s book guides companies that fund and originate VA loans. The 4 main loan approval requirements according to the lending guide include:

1. VA entitlement
This requirement stipulates that the borrower must be eligible for VA loans. For instance, veterans looking for VA home loans must satisfy the service and entitlement requirements to get approval. The entitlement means the amount guaranteed to a particular borrower by the VA.

2. Owner occupancy
Owner occupancy rule requires the borrower to occupy the property he or she is financing within a reasonable period. This can be within 60 days after the deal is closed or for a period of 12 months in case the borrower is deployed away from home. In both of these cases, a spouse can move-in to satisfy the occupancy requirement.

3. Property eligibility
When it comes to property eligibility, the home loan benefits can only be used for owner occupied properties. The list of pre-approved homes includes VA-approved condos, townhouses, single family homes and multi-family homes. Specific rules also apply to modular and manufactured homes.

4. Borrower income and credit
To be eligible for VA loan, the borrower must first qualify for the loan. Since lenders can decide which borrowers are safe credit risk using the VA guidelines, veterans or co-borrowers who want to apply for loans must have steady or sustainable income and satisfactory credit.

5. Persons eligible for VA loans
The groups eligible to apply for VA loans, such as home-buying military benefit includes; veterans, military personnel and their families. The list also includes active-duty personnel, surviving spouses and reserve members.

The Benefits of VA Loans
VA loan programs offer recipients highly attractive and flexible loan terms. The three key benefits include; lower monthly payments, easy and faster qualification and no money down requirement. The loans are also more affordable compared to your typical mortgage or bank loan. Since most VA loans are protected by government, the need to apply for the expensive mortgage insurance is not a requirement. This has gone a long way to make the rates and payments affordable.

Finding a VA Lender
You can easily get in touch with a VA lender by talking to different lenders in the market; getting a recommendation from friends and searching on the web. Last month I wanted to learn more about the VA loan program after reading about its numerous benefits. A friend told me to speak to Flagship Financial, which is one of the largest VA-approved lenders. Flagship Financial guarantees low rates and payments, 0 down payments and no PMI.

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