What do VA Lenders Look For?

Just like many other commercial and private mortgage lenders, companies that extend loans under the aid of the Veterans Affairs (VA) look for individuals who are able to keep up with payments, first and foremost. While it’s true that the VA is already considerably generous, one’s paying capacity is still very much looked into. As you may have already figured, this home loan isn’t just granted to most people. The name of the home loan itself reveals plenty about who it’s for. Below is a summarised criteria of who is qualified.


  • They have served 90 successive days or active service over wartime.
  • They have delivered 181 days of operating service over peacetime.
  • They have more than 6 years of rendered service in the National Guard or Reserves.
  • They are a spouse of a military personnel who has died over war or has died as an outcome of a service-caused disability.


Take note that only one needs to be ticked off from the list for an applicant to make it. VA loans are tremendously big-hearted, so to speak. They are one of only two home loans that call for a zero percentage—yes zero—deposit. As established earlier on, only Veterans, with the inclusion of select spouses, are considered for the loan. The VA loan composition was initiated in 1944 by the government to assist in helping active military members in purchasing homes sans the demand of terrific FICO ratings.


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This auspicious movement has aided insure over millions and millions of VA mortgages, therefore benefiting several families of veterans and military members alike. As of today, the VA mortgage continues to prove to be even more useful. Because of an estimated decline and failure in solo property purchasing in recent years, several private lenders have made more stern their lending requirements. Because of that, many qualified VA loanees resort to this home loan for home-buying undertakings.


That said, similar to whatever available home loan there is today, conditions apply.


Even though VA loans are backed up by the federal government, they do not hand out money themselves. The VA only guarantees mortgage that VA-affiliated private lending firms give out. The reason for this is so that these lenders are kept protected should anyone resort to defaulting.


In a lot of American areas, the maximum price a loanee can be lent is in the $400,000 figure. However, houses that go beyond the established price range will require a debtor to let out a down payment.

In the fee equation, veterans will have to keep paying for a VA funding fee. This fee is priced at different rates depending on each borrower, as this will be determined by how one is qualified on the start. Another positive feature to this home loan is that the VA funding fee is no longer collected to borrowers who are now afflicted with a non-curable disability because of having served in the war. For more VA loan program concerns, click the link.