VA is only available to buyers who are former or current members of the US Armed forces. VA loan requirements are designed to assure that the home is safe and sound for those who served.
One of the most valuable benefits available to veterans of the U.S. Armed Forces is the VA home loan program. This special mortgage option requires no down payment and does not require private mortgage insurance (PMI), making it one of the most affordable ways for eligible service members and veterans to buy a home.
Another major advantage of a VA loan is that it is assumable. This means that if a home is currently financed with a VA loan, the seller can allow a new buyer to “assume” or take over the existing loan and its payments — even if the buyer is not a veteran and does not have VA loan eligibility.
However, the seller (the veteran) is essentially leaving their VA loan eligibility tied to that property until the loan is paid off. To be released from future liability in the event of a default, the buyer must still meet the lender’s credit and income requirements in order to qualify for the assumption.
The biggest advantage of assuming a VA loan is the opportunity to take over a mortgage with a lower-than-market interest rate — a major benefit in a rising-rate environment. It’s important to note that the loan balance remains the same, so the buyer must pay the seller for any equity that has built up in the home before the sale is completed.
Despite that challenge, VA loan assumptions can be a smart solution for buyers when interest rates are significantly higher than they were when the original VA loan was secured.
The VA loan requirements are designed to favor the borrower and to give them the benefit of the doubt.
Because a VA loan is considered a true benefit for veterans of the U.S. armed forces, the VA encourages lenders to give the benefit of the doubt to the veteran when evaluating loan eligibility. While creditworthiness and debt-to-income ratio still matter, underwriters are often more willing to think outside the box when reviewing a VA loan application, especially in support of the veteran’s approval.
If you join the U.S. Armed Forces Reserves, you may become eligible for a VA loan after completing at least 90 days of active duty service. This can include your time spent in basic training and Advanced Individual Training (AIT), as long as you were called to active duty under Title 10 federal orders — which is typically the case during initial enlistment.
Eligibility ultimately depends on what is reflected on your DD214 discharge paperwork. You can get a copy of your DD214 form here. If it shows at least 90 days of qualifying active duty and lists you as eligible then you have met the VA loan requirements and you can move forward with a VA loan. If it doesn’t, you may need more service time to qualify.
The VA loan program is designed to help veterans become more firmly established through homeownership. As part of this, the VA appraisal is the most thorough of any conforming loan program. It evaluates not only the structural soundness of the home but also its economic efficiency, ensuring that the property meets high standards before purchase.
In addition to our many years of experience working with VA loans, we live and work right here in Central Ohio. Our physical office is located in Gahanna, and you’re always welcome to meet with us in person if you prefer. When you call us, you’re speaking with a real person who understands the local market — not a distant call center where you get a different representative every time.
At Barrett Financial, We have taken the time to become very familiar with the VA loan requirements. In addition to that, we take the time upfront to complete a “full” application so we can ensure your file is approved as quickly and smoothly as possible. This approach helps eliminate the need for you to repeatedly provide additional documentation throughout the approval process.
We’ve been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 181106
Personal NMLS: 1599243
OH RM.804600.000
Ron Pero
81 E Mill St., Suite 300
Gahanna, OH 43230
Barrett Financial Group, L.L.C.
2701 East Insightway, Suite 150
Chandler, AZ 85286
Ronald Alvin Pero | NMLS #1599243 | Barrett Financial Group, L.L.C. | NMLS #181106
2701 East Insightway, Suite 150, Chandler, AZ 85286 | OH RM.804600.000 |
Equal Housing Opportunity This is not a commitment to lend. All loans are subject to credit approval. | NMLS Consumer Access Visit Barrett Financial Group’s Website
