See If You're Eligible!
To determine your eligibility for the VA Home Loan benefits program, you the borrower will consider your status and character of service in the military. You must currently be or must have been in the military in the past. The VA Home Loan program is available to those who served in several different capacities. If you meet at least one of these following requirements, you will be eligible:
Active servicemembers can establish their eligibility after 90 days of continuous duty. Upon their disharge or release from active duty, their eligibility must be reestablished because their status has changed.
A Veteran During Wartime
A Veteran who has served 90 consecutive days of active service during wartime.
A Veteran During Peacetime
Any Veteran who served 181 days of active service during peacetime.
National Guard or Select Reserve
If you completed a total of 6 years in the Selected Reserve or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and:
- Were discharged with a honorable discharge; or
- Were placed on the retired list; or
- Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service; or
- Continue to serve in the Selected Reserve.
*Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
Spouse of a Veteran
You may qualify if:
- You are an un-remarried spouse of a Veteran who died while in service or from a service-connected disability; or
- You are a spouse of a servicemember missing in action or a prisoner of war.
- You are a surviving spouse in receipt of Dependency and Indemnity Compensation (DIC) benefits in cases where the Veteran's death was not service-connected.
*If you do not meet these criteria, and still feel that you may be eligible, give us a call!
Certificate of Eligiblity
A Cerificate of Eligiblity (COE) is one component to securing the VA Home Loan Guaranty. It confirms that the borrower is be eligible for the program, and it is nessessary for lenders to have before making a loan available. You can ask for your Cornerstone Military Lending loan specialist to obtain the COE on your behalf. Once the COE is received, your financing process can move forward. You may obtain the certificate in three separate ways:
- Apply through a VA-Approved lender, such as Cornerstone Military Lending.
Certificate of Eligibility
- By using the VA's eBenefits portal.
The link to the VA Website is here: ebenfits.va.gov
- By Mail, using VA Form 26-1880
The Department of Veterans Affairs is ready to speak to those who have questions about their own Certificate of Eligibility.
VA Loan Income Requirements
Homebuyers who are interested in the VA Home Loan program do not need to earn a massive income to be eligible. The VA requires that the homebuyer makes enough each month to keep up on their bills. The VA needs to see that the borrower will have income left over every month after their major expenses are paid. This is called Residual Income, and it helps to keep the foreclosure rate lower than most other loan options.
By requiring this residual income, the VA is able to ensure that borrowers can meet their financial obligations each month. It's also important to the VA that borrowers can keep a buffer in the case of an emergency.
In addition to the VA's requirements, other financial records of the borrower are considered. This includes the borrower's credit, debt and sources of income.
As you apply for a VA Loan, your Mortgage Professional at Cornerstone Military Lending will be reviewing your credit score, from the three leading credit agencies. They will also need to check your debt-to-income ratio and see if it's within a borrowing stature.
The VA-Guaranty is limited to the amount that the Veteran is entitled to. The COE specifies how much this is. We must ensure that this entitlement is a sufficient amount of guaranty to satisfy secondary market requirements. If you have already taken advantage of your VA-Guaranteed Entitlement then we may ask that you apply for restoration of this amount (through the VA).
Lastly, any veteran who applies for a VA Loan must not have been discharged in any dishonorable way. It would not speak directly of the merit of the borrower, instead it indicates an ineligibilty under the VA's requirements. We value all past & present members of the military and their allegiance to our nation.
Know More about VA Loans
The VA Loan is the best choice for financing a home. We hope that you are aware of your criteria to secure it, and we hope that you give us a call at 619-338-9600.