VA Loan Information Center

With the crash in the subprime market there are very few 100% loan options available today. In reality, the VA guaranteed loan is the only true 100% loan requiring no down payment from the borrower.

Of course this loan is only available to current member or veterans of the US Military or Reserves/National Guard. In some instances spouses of veterans are also eligible on a case by case basis. In order to qualify for the VA loan the borrower needs to furnish a copy of his/her VA Certificate of Eligibility.

The first step in obtaining a VA loan is to work with a mortgage lender that is VA certified. Be aware that not all lenders are able to do VA mortgages and you need to ask your lender this question up front.

The requirements for a VA loan are very similar to other loan programs. The lender will need to verify the borrowers income and employment information. Lenders like to see a stable two year history with a consistent earnings history during this time. Additionally, some form of asset verification is also required and to do this lenders may request two months of bank statements. It is good to have a few months of reserves saved up in order to increase your chances of being approved.

While it is good to have a good credit score and a clean credit report, the VA loan is not necessarily a credit driven system. However, poor credit can be a reason for a loan to be denied. For those who have no prior credit history the VA does allow non-traditional credit. This is where the lender verifies that the borrower is in good standing with four creditors over the most recent twelve months. These creditors can include landlord (rent payment), insurance, telephone bills, utility bills etc.

If you have any other questions on VA Loans please feel free to contact Aimee Ghimire at CTX Mortgage Company in Mesa, Arizona. She can be reached by telephone at (480) 516-1819. You may also visit the Contact Us page.

Photo Credit: JColeman (Flickr)

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Aimee Ghimire
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