VA Home Loan Qualifications
Qualification for the VA loan program is similar to FHA and RD guidelines with a few VA specific rules that differ substantially from those programs.
Basic VA loan qualification requirements include:
- Two years of steady employment, preferably with same employer or in the same line of work
- If the veteran is leaving service within 12 months, there are significant additional requirements that have to be addressed— if an active service member has a separate date within the next 12 months, evidence of reenlistment eligibility must be provided along with a statement of intent to reenlist
- Job changes that have related work experience do not necessarily create an issue in qualifying
- Last two years income should be the same or increasing; additional income for service members such as food and housing allowances are considered in the income calculations
- Credit report history should be relatively clean with few late payments or collections accounts; a minimum usable credit score of 620 is generally required
- Bankruptcy cases require special consideration. The individual circumstances related to a bankruptcy require a detailed review to determine overall eligibility
- Eligibility is generally not available for applicants with a foreclosure in the previous 2 years
- Your total debt service should be no more than approximately 41% to 45% of your gross income
- Sufficient assets to cover the veteran’s loan related closing costs and escrow setup expense need to be verified as a condition of loan approval.