What is My Fort Lauderdale VA Loan Lender Looking for?
Trying to get any mortgage can be very difficult at this time, however knowing what your lender is looking for when you apply for a VA loan in can help. Adding the regulations and extra steps of getting VA qualified before you can even start the home loan process can seem daunting and more than a little intimidating. Having the right lender and knowing the items you need goes a long way toward making everything feel more straightforward. If you continue reading, you will learn what your lender will check for during your VA mortgage application.
What is a VA Loan and Is It Different Than a Typical Mortgage?
A is a home mortgage that is offered by the US Department of Veterans Affairs. These types of loans are guaranteed by the VA and are only available to military personnel and their families who are eligible based on the rules put in place for the VA loan program. Unlike a typical mortgage, VA loans offer qualifying applicants an opportunity to get better interest rates, $0 down payments, and a few other benefits.
Are You Eligible to Apply for a VA loan?
To qualify as an applicant for a VA loan, you must be a veteran, active duty service member, a National Guard member or a reservist that meets the service requirements dictated by the Department of Veterans Affairs. Some spouses of deceased military members may also qualify.
If you can answer yes to any of the following questions, you may qualify for a VA loan.
- Have you served 90 days consecutively during wartime?
- Have you served 181 days during peacetime?
- Have you served for more than six years in the National Guard or Reserves?
- Are you the spouse of a deceased military member that was killed while on active duty or as a direct result of a service-related disability?
- Were you discharged honorably?
Ultimately the VA determines who is and is not eligible for the program; however, if you provide answers for these questions to your lender, he or she will have a good idea if you will qualify to apply for a VA loan.
Borrowers who are eligible for the VA loan program do not have to meet a particular income level to utilize their loan ; however, just like any mortgage, VA loans require borrowers to have a steady income that will be sufficient to cover all of their monthly expenses as well as the new home loan payments. The VA loan program also requires that the applicant have a set percentage of their income left over after all other expenses. That money is their residual income and is supposed to be used for regular needs. Due to remaining income requirements that the VA loan program has, the borrowers who use a VA loan are less likely to default on their mortgages. They enforce these requirements on the borrowers to ensure that each person has the money necessary to provide for their needs, meet their financial obligations, and still be able to put aside money for emergencies.
Your Lenders Eligibility Requirements
While the VA determines the regulations that are in place for eligibility for the VA benefits; each lender will also have a set of guidelines that you as a borrower must meet. Each financial institution will have you meet their debt, income, and credit standards before the loan application can be approved.
Do You Have a Certificate of Eligibility?
All lenders must have proof of a veteran’s service to issue a VA loan. The Certificate of Eligibility (also known as a COE) is a document that proves that the borrower meets all of the VA’s service requirements. There are multiple ways that an eligible member can obtain a Certificate of Eligibility. He or she can speak to their lender. Sometimes financial institutions that are well versed in VA loans can assist you in applying to get your COE. You can also apply for your COE on the VA’s , or you can mail in an application. If you choose to send in the application, you will need to go to the web page and print off the proper form.
VA Loans in Fort Lauderdale with NHL Lending
Nationwide Home Loans has a team of loan specialists that are well versed in all the different regulations and paperwork required to determine if a borrower is eligible for the VA loan program. Our team can help you obtain all the documentation that you will need for the VA home loan application process. We have the knowledge as well as the expertise that is so essential with government mortgage programs. Please contact us , so that we can assist you with the process of utilizing your VA benefits and becoming a homeowner.