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VA Loan Requirements 2021

Va loan requirements

VA Loan Requirements – Va loan requirements is needed since VA loans are a great way to finance a house. The government-sponsored mortgage program has several unique features that help borrowers save money both prepaid and monthly payment. In fact, this is one of the few programs  that enables 100% Loan-to-Value (LTV). In other words, you may be able to fund the full amount of your loan. And it is better to know Personal mortgage insurance (PMI) is not required  even if set to zero.

VA Loan helps service members, veterans, and qualified surviving spouses become homeowners. VA Mortgage Loans are provided by private lenders such as banks and mortgage lenders. VA guarantees a portion of the loan so that the lender can offer more favorable terms.

Lenders set their own requirements for certain aspects of eligibility, but Va loan requirements have milder credit requirements than many other mortgage programs.

Va Loan Requirements for Veterans and service member on active duty

Not everyone in the army is eligible for a VA loan. To qualify, you must meet at least one of the Va loan requirements. If you work for at least the following period, you will meet the minimum active duty requirements for Va loan requirements.

You may be able to get a COE if you meet at least one of the Va Loan Requirements.

Va Loan Requirements for National Guard and Reserve Members

Current members of the National Guard or Reserve  also need Va Loan Requirements.

Va Loan Eligibility requirements

Once you have verified that you meet the  Va Loan Requirements, you need to check your income, assets, creditworthiness, and real estate to buy.

Property type

VA loans can also be used for condominiums and prefabricated homes, but not all lenders lend to these types of real estate loans. The property you purchase must be your primary residence within 60 days of purchase.  VA loans are not available for villas or investment real estate, but  can be used to buy a single-family home if the eligible member is using it as their primary residence.

Credit Score

Va Loan requirements vary from lender to lender, as VA does not require a specific minimum credit rating for VA loans.


Your lender evaluates your debt-to-income ratio (DTI) as one of Va Loan Requirements when considering your ability to repay a loan. Your DTI is how much of your monthly income is used to pay off your debt. Some lenders may do so, but VA does not set limits on your DTI.

VA Credit limit

VA does not limit the amount you can borrow, but there is a limit to VA’s warranty. That’s the amount they cover if you default  on your loan.

Down payment and assets

VA loans are one of the few loan options that do not require a down payment. Your lender may have specific Va Loan requirements for a  free VA Loan down payment. It is important to remember that “no down payment” does not mean “zero cost”. Here are some other VA loan costs that you still need to prepare for.

Loan fee

Most Veterans Affairs loaners are required to pay a loan fee that covers the taxpayer’s expenses. The VA loan fee is 2.3-3.6% of the loan amount.  The amount of the fee depends on the type of service, the amount of  down payment, whether you are getting a VA loan for the first time, and whether you are buying or refinancing the property. Surviving spouses, disabled veterans, and recipients of the active Purple Heart badge are exempt from the funding fee. In most cases, if you don’t have a down payment, you can incorporate a VA loan fee  into your mortgage.

Reserve Funds

Most loans require  additional money from the bank and are not used for prepaid expenses. This will allow you to make payments after the loan has closed. The required balance is determined by the cost of  mortgage payments such as principal, interest, taxes and insurance. It’s not always necessary, but it’s a good idea to have a reserve equivalent to paying a two-month mortgage.

If you need more information about Va Loan Requirements or va loan refinance, Just Funded Mortgage are available on Monday – Friday: 9:00 AM – 7:00 PM to answer any questions you have or give us a call at 833-888-3863.

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