Podcast - 070: How to buy a home with a VA loan in 2022?
In this podcast realtor Anthony Luevanos and lender Angel Luevanos break down what a VA loan is, who is eligible, what it takes to qualify, and the pros and cons of using this option.
VA loans are designed to help military service members and veterans purchase a home with lower requirements and more affordable payments. A VA certificate of eligibility is required to purchase. The certificate of eligibility is a document from the Department of Veterans Affairs that shows you meet the service requirements for a VA loan.
So, who can qualify for the VA certification of eligibility? (The bullet points below are copied directly from NerdWallet)
You are on active duty and have served 90 continuous days.
You are a veteran who meets length-of-service requirements, generally 90 days in wartime and 181 days in peacetime.
You completed 90 days of active-duty service or six creditable years in the Selected Reserve or National Guard.
You are the surviving spouse of a veteran who died while in service or from a service-connected disability, and you have not remarried. Or you remarried after age 57 or Dec. 16, 2003. Spouses of service members missing in action or prisoners of war are also eligible.
What are the minimum requirements to qualify for the VA loan?
No minimum downpayment is required, and most borrowers go in with 0% down. The credit score is 580, but we recommend a 620 since it's more challenging to get approved with a lower score. No debt-to-income ratio is required, but we recommend staying under 50% for a better chance of qualifying. Unlike the FHA and conventional loans, there are no loan limits for the VA loan. Loan limits for the other programs in 2022 range from $420,860 in low-cost areas to $970,800 in high-cost areas like Los Angeles and Orange County.
What are the pros of the VA loan?
Low down payment requirement
No mortgage insurance, but there is a funding fee
Affordable payment
Best rates
What are the cons of the VA loan?
Termite clearance required
Veterans cannot pay for termite clearance
Harder to get your offer accepted
Cannot use 0% down if co-signer is not spouse
Overall, the VA loan is best for active military members or veterans who have DD-214s. It’s an excellent option for anyone who qualifies for the VA certification of eligibility.
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