Mortgage Guidelines VA LOAN BENEFITS
NO PREPAYMENT PENALTY
NO BORROW LIMITS
NO PMI
NO DOWN PAYMENT
MINIMUM CREDIT SCORE
Applicant must have a decent credit score and sufficient income to purchase a home. The financed home must serve as the primary residence.
CREDIT SCORE REQUIREMENTS
The minimum credit score to qualify for a VA loan is 600. It requires a lender to "review the entire loan profile to make a lending decision.”
VA LOAN DEBT-TO-INCOME RATIO
The VA also doesn’t specify a maximum debt-to-income ratio. But if the total debt-to-income ratio is over 41%, lenders will need to provide proof of an applicant’s ability to repay the loan.
DOWN PAYMENT REQUIREMENTS
Under most circumstances, you don’t need to make a down payment. However, if the purchase price of the home is greater than its appraised value, you may have to make up a portion of the difference. The VA funding fee is a one-time payment that the veteran, service member, or survivor pays on a VA-backed or VA-direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. This can be financed. Some veterans may be exempt from paying this fee; the COE will determine this.
VA FUNDING FEE
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