VA Loans

VA Loans

VA Loans require ZERO Down Payment and are designed to offer long-term financing to Veterans.

VA IRRRL STREAMLINE REFINANCE

The VA IRRRL is a process of refinancing a VA Loan into a Lower Interest Rate, Term or out of an Adjustable Loan. It must have a benefit to the Veteran and the Funding Fee is also reduced, or for some Veterans who qualify, it is completely waived.

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VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice.

To be eligible for a VA Loan, veterans, active duty service members, National Guard members and reservists must meet the basic service requirements set forth by the Department of Veterans Affairs. Spouses of military members who died while on active duty or as a result of a service-connected disability may also be eligible.

VA Loan Income Requirements

Homebuyers interested in the VA Loan aren’t required to reach any kind of income threshold to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.

Additionally, the VA requires that borrowers maintain a certain amount of income left over each month after all major expenses are paid. The excess is meant to cover typical family needs, such as food, transportation and so forth and is referred to as residual income. Residual income is a large reason why the VA Loan maintains one of the lowest foreclosure rates of all major lending options.

By enforcing residual income requirements, the VA increases the chances of its borrowers earning sufficient income to meet all financial obligations, and also ensures borrowers have a cushion in the event of an emergency.

Additional Eligibility Requirements

Although the VA determines the guidelines for those who are eligible for the VA Loan benefit, private lenders who finance the home purchases have an additional set of criteria a potential borrower must satisfy, including debt, income and credit requirements

When you apply for a VA Loan, your Mortgage Specialist will pull your credit score from the three leading credit agencies, as well as examine your debt-to-income ratio.

Finally, a veteran applying for a VA Loan must not have been discharged under dishonorable conditions.

VA Loan Income Requirements

Homebuyers interested in the VA Loan aren’t required to reach any kind of income threshold to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.

Additionally, the VA requires that borrowers maintain a certain amount of income left over each month after all major expenses are paid. The excess is meant to cover typical family needs, such as food, transportation and so forth and is referred to as residual income. Residual income is a large reason why the VA Loan maintains one of the lowest foreclosure rates of all major lending options.

By enforcing residual income requirements, the VA increases the chances of its borrowers earning sufficient income to meet all financial obligations, and also ensures borrowers have a cushion in the event of an emergency.

With Barbara Kenton at Allianz Mortgage Service, we know all about Conventional Loans and how to qualify you for either a Home Purchase or Refinance.   If you are located in the Los Angeles, Orange County, San Bernardino, Riverside County area,  or anywhere in California, contact us today to get started.

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