Important Guidelines for Prospective Home Buyers with VA Loans

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If you are a veteran in the United States, you have probably heard about the various government schemes that can help you get a loan to purchase a home of your choice. The Department of Veteran Affairs, that has given impetus to the Veteran Affairs loan scheme, has also chalked out certain regulations and eligibility criteria to ensure that the finance facility can be enjoyed by people who truly deserve it. However, the fear of stringent rules and reservations often keep many people from availing a VA home loan. If you think the same too, you would be surprised if we tell you that VA loans are among the most flexible and forgiving mortgage types that veteran Americans can hope to attain.

In fact, in recent times when it is becoming all the more challenging for people to get a conventional loan sanctioned, VA loans are the resort that is acting as the saving grace. In the year 2013, the program alone backed a mortgage record of 630,000! But that also does not imply that the VA loan process is without any hurdles. Let us take a look at the common hurdles that one faces with VA loan applications and the ways they should be dealt with.

1. Occupancy – You cannot use a VA loan to purchase a rental property or a vacation home as a VA loan requires you to live in the home that you purchase with the money. But, that does not mean you cannot rent out the property. In fact, many military buyers actually do that when they receive a PCS (Permanent Change of Station). You can also hope to have two VA loans at the same time.

2. Affordability and Residual Income – Yes, a VA loan does not ask for any down payment. That way, it is sure a risky mortgage but somehow is the also the safest one we have seen in five years. The reason is the residual income requirement that VA asks for. This is mainly because the VA loan authorities want to ensure that a military buyer does not need to compromise on his daily expenses to pay mortgage amounts.

3. Credit Score – You don’t need to have a decent credit score in order to secure a VA home loan. But, the story might be a little different when you actually seek a lender for a loan. There a lender would always ask you for a minimum credit score which is 620 in case of VA. But, military professionals might face some strains and sacrifices which often make it difficult for them round up the score to 620 even. It would be better for you if your check for your credit scores in advance before you plan home purchase.

4. Appraisals – There is not always the need to buy immaculate homes with a VA loan. You can also purchase a used property provided the house meets the MPR requirements. In other words, the home has to be safe and with good sanitary facilities. Make sure that your real estate agent is aware of that.

You can surely understand that planning and being vigilant at all times may not be possible for you while you apply for a VA loan. Therefore, it is always advisable to get in touch with a VA approved lender or consultant who has market knowledge and the idea about the requirements that you would need to fulfil.

About the Author(Article Source: offers all veterans the best information about guidelines that is laid down by The Department of Veteran Affairs while obtaining VA home loans from a certified lender.


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