Jane Loveday - San Diego Real Estate Blog: April 2013

10 Most Common VA Loan Questions

Am I eligible for a VA Loan?

If you are serving in the Military or have been honorably discharged you have most likely earned the right to use the VA Loan. Active Duty members need 90 days during wartime or 180 days during peacetime. Reservists must complete their 6-year commitment to be eligible for VA Loan Benefits.

How do I qalify for a VA Loan?

Once you know you are eligible for the VA Loan, the next step is to Pre-Qualify. Pre-Qualification is a look at your credit and income and determine your purchase power. Contact a trusted VA Approved Lender to get started today.

What Credit Score do I need to qualify for a VA Loan?

Typically, a credit score of 620 is required in order to obtain VA financing. That's not to say that everyone with a 620 score will qualify, as the Debt to Income Ratio also play a part.

What is Debt to Income Ratio?

Your Debt to Income Ratio, or DTL, is defined as your total monthly obligation divided by your total gross monthly income. This can be a bit complicated to compute, with many facotrs playing a part, so make sure you have a experienced VA Approved Lender to go over your debt ratio with you.

What is an acceptable DTI for qualification?

There is no hard and fast rule for this. Typically, your debt ratio will need to stay below 50%. In some cases, it is possible to be approved with a DTI higher than 50%. The best thing to do is to speak with a VA Approved Lender regarding your qualification.

What happens after I'm Pre-Qualified?

After you are Pre-Qualified, your lender will probably send you a documentation packet. The VA Loan is documentation-heavy, so it's best to get this out of the way early rather than try to wait until you are under the gun to close on your home.

What if I am not able to qualify?

Not to worry. Just because you can't qualify now doesn't mean you can't qualify in the future. Talk to a trusted VA Approved Lender to see what you ned to dos to qualify, either now or down the road.

Can I use the VA Loan for a refinance?

Yes, you can refinance from any type of mortgage into the VA Loan program. There are restrictions, so the best thing to do is call a trusted VA Approved Lender to get started.

What is the main benefit of the VA Loan Program?

The VA Loan allows you to finance 100% of your purchase price. These days, 100% financing outside of the VA Loan Program is next to impossible.

What are other beneifts of the VA Loan Program?

The VA Loan Program allows you to negotiate your closing costs to be paid by the seller. This allows you to close for little to no money out-of-pocket. VA Loans are also Government-backed, meaning they offer lower rates and fees compared to other loan programs. Current VA homeowners also have the option to Streamline Refinance at current market rates, lowering payments and freeing up extra monthly cash flow!

For a referral to a qualified VA Loan Officer please contact me!