VA Loan Qualifications and Eligibility Requirements in 2019

by Advisor Voices
Mortgages, VA Loans,
VA Loan Qualifications and Eligibility Requirements in 2019

The Veterans Administration (VA) will guarantee that a loan made by an approved lending institution will be paid.

What is VA Loan Qualifications and Eligibility Requirements?

The following are requirements to receive a VA loan:

  • The veteran must have served 181 days active service in the military since 1940.
  • A veteran’s basic entitlement is $36,000 (or up to $60,000 for certain loans over $144,000). Lenders will generally lend up to 4 times the available entitlement without requiring a down payment, provided the veteran’s income and credit qualify and the property appraises for the asking price. There will be a VA funding fee charged for origination of the loan.
  • VA will guarantee real property, mobile homes and plots for the mobile home.
  • The VA requires that a veteran assumes liability for the loan. If a veteran does not pay the mortgage as agreed there will be a foreclosure.
  • The property must be owner-occupied for at least one year.
  • The veteran must first apply for a Certificate of Eligibility in order to obtain a VA loan.
  • The house must qualify with an appraisal and be issued a Certificate of Reasonable Value.
  • The amount of the loan is limited to the amount shown on the Certificate of Reasonable Value.
  • Loans may be assumed by non-veterans, but the veteran is still liable.
  • VA will lend money in rural areas where there is no financial institution available.
  • Points can be paid by either the seller or the buyer.
  • If a veteran has died, his/her widow or widower may be eligible for a VA loan. In order to be eligible for a VA loan, the widow or widower may not be married again at the time of application.
  • If a loan is assumed by another veteran and the seller has used all of his/her eligibility, the seller cannot use his/her eligibility again, unless he is given a novation* because he/she will still be liable for the loan.
  • FHA and VA will allow the buyer to pay more than appraised value, if the buyer pays the difference in cash.

What is a VA loan maximum?

There is no maximum VA loan, but lenders will generally limit VA loans to $240,000. This is because lenders sell VA loans in the secondary market, which currently places a $240,000 limit on the loans. For loans up to $240,000, it is usually possible for qualified veterans to obtain no down payment financing. (These numbers change from time to time.)

What is a downpayment on VA Loan?

A qualified veteran may borrow up to 100% of the loan with no down payment.

What is a prepayment penalties for VA loan?

VA does not allow prepayment penalties to be charged if a veteran pays off a loan early.

  • Did you find this article helpful?
    Leave us a feedback below about how to improve it.
  • yes   no
You may also like