On average, VA loans are typically easier to qualify for than a conventional lending program. The program still provides significant financial benefits despite the fact that only a fraction of our nation’s veterans and service members have taken advantage of their benefits.
What is even worse, is according to a study by the Department of Veterans Affairs, nearly 20 percent of veterans don’t even know the program exists.
- Qualifying for a VA loan
VA loans are fairly easy to qualify for. Prospective buyers must have only:
Served 181 days on active duty during peacetime or 90 days during wartime
Served six years in the National Guard or Reserves
Be the spouse of a fallen service member who died due to a service related injury.
Those who fall into one of those categories must take the next step of filling out a Certificate of Eligibility, or COE. This official VA document proves you are able to participate in the program and have met the service requirements. Applicants can obtain these through the VA directly or through an approved VA lender.
VA officials must look over the Certificate of Eligibility and ultimately determine whether a prospective borrower can participate.
The Department of Veterans Affairs doesn’t give explicit income or credit standards to qualify for the program, since the VA doesn’t issue the loan. Income and credit standards are given by VA-approved lenders, which generally require a minimum score of 620 to qualify.
Interest Rate Reduction Refinancing Loan (IRRRL)
The VA’s IRRRL, or streamline refinance, gives current VA home loan holders the opportunity to take advantage of the market’s low interest rates.
Prospective borrowers should remember that for this to be worth their while, they should make sure the new interest rate is lower than the current rate and that you can’t refinance a FHA or conventional loan through the IRRRL.
This program isn’t for everyone, but for those looking to lower their current interest rate, it is a great option. For more information on the VA home loan program and the VA’s IRRRL, contact a VA-approved lender like Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans. Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans.
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