Obtaining a VA Loan
- The application for a VA loan does not differ from other types of loans. The veteran must apply for and go through the credit requirements of a lender.
- A VA certificate of eligibility can either be ordered by the veteran or ordered from the VA by the lender. This form can be ordered only if the veteran can produce a DD Form 214 showing honorable discharge or acceptable medical discharge.
- This certificate sets the loan limits a veteran can qualify for, and the maximum amount the VA will underwrite. The terms of the loan, however, are set by the lender based on the veteran's income and debt.
- Similar to FHA or conventional loans, VA loans have guidelines that determine acceptable income-to-debt ratios.
- VA loan underwriting guidelines stipulate limits based on family size and dependents. Veterans with more dependents will qualify for less of a loan amount.
- The biggest benefit to obtaining a VA loan is that no down payment is required, meaning an eligible veteran can move into a home without a large initial investment.