VA LOAN REQUIREMENTS

Usually, for an active duty service member or Veteran to be eligible for a Texas Vet or VA Mortgage, they will need to have served according to the following:

• 181 Days of Peacetime Active Duty Service
• 91 Days of Wartime Active Duty Service
• 6 Years of Reserves or National Guard Service
• You are the spouse of a service member who was killed in the line of duty

Debt to income ratio (DTI) is the commonly used ratio to determine how much a borrower can qualify for. However, Veteran Mortgages are primarily reviewed using what is known as the residual income calculation. This calculation determines if a Veteran has enough income to cover living expenses after paying the mortgage, housing expenses, taxes and other debts like car payments or credit cards.

Income Requirements:

Credit Requirements:

There is not a minimum credit score requirement per the VA guidelines. However, most lenders do have a minimum score. Can range from 580 to 620. If your credit score is just below that we can work with you to help raise it a few points in order to help get you qualified.



If you have had a bankruptcy in your past, you are still eligible for a VA Loan. A Chapter 11 Bankruptcy must be 12 months since the discharge date and a Chapter 7 Bankruptcy must be 24 months since the discharge date. Credit history since the discharge date must be acceptable.

Certificate of Eligibility:

In order get a VA Mortgage, you will need a VA Certificate of Eligibility (COE). When you apply, the lender will obtain your VA Eligibility Certificate through the ACE (Automated Certificate of Eligibility) system we have access to as an approved VA lender.

VA LOAN AND TX VET MORTGAGE BENEFITS

Veterans in Texas have two excellent home loan benefit programs. The VA housing loan is backed by the Department of Veterans Affairs loan program which provides extra benefits for Veteran borrowers. The Texas Veteran housing assistance program is sponsored by the Texas Veteran Land Board. The benefits of these programs include:

• 100% financing – no down payment required
• All closing costs can be paid by the seller
• Flexible credit requirements
• VA Jumbo Loans available for loan amounts up to 2 million.
• No private mortgage insurance (PMI)
• Low 30 and 15 year fixed rate loans comparable to conventional loans with 20% down payment
• No VA funding fee if the Veteran receives VA disability
• VA Streamline Refinances available to lower payments when rates drop

Additional Benefits for the Texas Veteran Mortgage Program Only

• Unbeatable low fixed rates on 15 & 30-year loans
• Additional 0.5% interest rate discount for Veterans with 30% or greater service-connected disability
  

You don’t have to separate from the Military in order to be eligible for a Veteran Mortgage and buy a house. Most active duty personnel are also eligible for the Texas Vet & VA housing benefits mentioned above.