VA Loans is the best home mortgage program in the U.S. However, only eligible active and/or retired members of the U.S. Armed Services with a valid certificate of eligibility (COE) can qualify for VA loans. VA loans are for owner-occupant primary homes only. You cannot finance a second home or an investment property with a VA loan.
Eligible properties are the following types of homes:
- Single-Family Homes
- Two-four unit multi-family homes
Lenders offer 100% financing on VA loans at low interest rates and no mortgage insurance premium. Lenders can offer VA loans at great mortgage rates and 100% financing due to the government guarantee. The Veterans Administration is not a lender. The VA is a government agency that insures and partially guarantees lenders in the event if the borrower default and/or foreclose on their VA loans. In order for the VA to insure and partially guarantee lenders against the loss due to the borrower defaulting and/or foreclosing on the VA loan, the VA loan they originate and fund need to meet the minimum VA agency mortgage guidelines.
Down Payment And Closing Costs On VA Loans
VA Loans have lenient agency mortgage guidelines than other loan programs.
- Data show members of the U.S. Military statistically have lower credit profiles than their civilian counterparts due to the often base transfers and/or due to deployment
- However, VA loans are the least likely to default than any other loan program even though they have lenient agency mortgage guidelines than other home mortgage programs
- The U.S. government created and launched VA loans to reward the men and women of the U.S. Military for their sacrifice and service by serving in a branch of the U.S. Armed Services
At Capital Lending Network, Inc. we can help our borrowers structure a VA loan where they can purchase a home with no money out of pocket. Closing costs can be covered with a seller’s concession and/or a lender credit. The VA allows home sellers to contribute up to 4% seller’s concessions towards the buyer’s closing costs.
Minimum VA Agency Mortgage Lending Guidelines
Here are the minimum VA Agency Lending Guidelines on VA loans:
- No down payment required on a home purchase
- Lenders will offer 100% financing to eligible borrowers with a certificate of eligibility
- There is no minimum credit score requirement to qualify for VA loans
- There is no maximum debt to income ratio caps as long as the borrower can get an approve/eligible per automated underwriting system
- There is no mortgage insurance required
- There is no maximum loan limit on VA loans
- Outstanding collections and charged-off accounts do not have to be paid to qualify for VA loans
- There is a two year waiting period after Chapter 7 bankruptcy, foreclosure, deed in lieu of foreclosure, short sale to qualify for VA loans
- Borrowers in Chapter 13 Bankruptcy repayment plan can qualify for VA loans after making twelve timely payments to the trustee
- The Chapter 13 Bankruptcy does not have to be discharged
- There is no waiting period after Chapter 13 Bankruptcy discharged date to qualify for VA loans
- However, any Chapter 13 Bankruptcy that has not been discharged for at least two years need to be manually underwritten
Capital Lending Network, Inc. is a national mortgage company licensed in multiple states with no lender overlays on VA loans. Over 75% of our borrowers are folks who either got denied at other lenders or could not qualify due to their lender overlays. Whether you have credit scores in the low 500’s or high debt to income ratios, as long as you get an approve/eligible per automated underwriting system, we can get you approved and close your VA loan on time.