I'm Eligible, but do I Qualify?
Being a veteran isn't the only determination for receiving a VA home loan. You still will need to qualify for the loan. Qualifying for the VA loan consists of an underwriter looking at the following factors. Based on the mix of these items, the underwriter will determine if you qualify. Every borrower has a unique scenario so there are a lot of ways you can qualify.
- Credit Score
- Debt to Income ratio
- Income requirements
- 2 year history of employment
- Rental Income - requires 2 year history on Tax returns to use
- Self Employed Income - requires 2 years history in most cases to use
- Asset requirements
- Gift fund requirements
- Asset seasoning
- Reserve funds requirements
- Property requirements (via the appraisal)
This is where Spire Financial's Loan Specialists come in. Our Loan Specialists understand the various strengths and weaknesses of the lending partners and will place your loan at the lender that fits your scenario the best. Call Spire Financial now and ask for a Loan Specialist at 303-595-0110. Get all your questions answered for free and at no obligation. Or email us at VaLoanQuestions@SpireFinancial.com.
When applying for a VA loan Spire Financial will request a Certificate of Eligibilty (COE) for you from the VA. The COE breaks down your entitlement code as well as your entitlement amount. This form can be a bit confusing. VA insures up to 25% of any loan you get through them up to $417,000 in most cases. However, on the COE it will only show $36,000, which at 25% would only be a house for $144,000. What doesn't show is the bonus entitlement of the remaining 25% of $417,000 which is $68,500. In some cases you can use this additional entitlement to have multiple VA loans at one time. For more on this, call a Spire Financial loan specialist to determine if you are eligible. A full entitlement will show an amount of $36,000 and will typically let you borrow up to $417,000.
Entitlement Codes:
Entitlement Code Code Meaning 01 World War II 02 Korean War 03 Post Korean War 04 Vietnam War 05 Entitlement Restored 06 Un-remarried Surviving Spouse 07 Souse of POW/MIA 08 Post World War II 09 Post-Vietnam 10 Gulf War 11 Selected Reserves Most COE's will show an entitlement of 4, 5 or 10. Entitlement code 5 will show if you have had a VA loan before. If your basic entitlement amount is $0 email us and we can help you fix it. Do you have more questions on this? Email us at VaLoanQuestions@SpireFinancial.com.
What is the VA Funding Fee? The VA Funding Fee is the one time fee VA charges to do a VA loan. The funding fee can be financed in to the loan. How much is the VA funding fee? This depends on three factors, downpayment, line of service and if this is your first VA loan. The table below breaks out the funding fee possibilities (funding fees calculated off of loan amounts):
Purchase or Construction Loans
Type of Veteran Down Payment First Time Use Add'l Uses Regular Military None 2.15% 3.3% * 5% to 9.9% 1.5% 1.5% 10% or more 1.25% 1.25% Reserves or
Nat'l GuardNone 2.4% 3.3% * 5% to 9.9% 1.75% 1.75% 10% or more 1.5% 1.5%
Cash-Out Refinancing Loans* - If the first time use was for a manufactured home,
Type of Veteran First Time Use Add'l Uses Regular Military 2.15% 3.3% * Reserves or Nat'l Guard 2.4% 3.3% *
the veteran can use the "first time use" column to calculate.
Other Loan Types
Type of Loan Percentage Streamline (IRRRL) Loan 0.5% Manufactured Home 1.0% Loan Assumptions 0.5% Do you have more questions on this? Email us at VaLoanQuestions@SpireFinancial.com.
VA Interest Rates move every day. To get today's rate quote use the form at the top right of this page.
Every lender is a little different, but here's what you can expect to need:
- DD214
- Certificate of Eligibility (we can order this for you)
- HUD & Note of any previously sold VA loans
- Last 2 W2's, bank statements & paystubs (non-streamline only)
Streamline Loans are a way for the veteran to lower their interest rate with minimal costs and documentation. With a VA streamline loan the veteran does not need to supply his or her income documents or bank statements (unless funds are needed to close). Also, no appraisal is required with a streamline.
Other benefits of the streamline are that you can roll in your closing costs and the funding fee as well. The funding fee on a streamline is only 0.5% of the loan amount; much less than a regular refinance or purchase. Do you have more questions on this? Email us at VaLoanQuestions@SpireFinancial.com.
