Va Loan Case Study

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Requirements for VA Loan Approval
One outstanding thing about VA loan application, is its easy approval process. However, it is important to understand what the process entails to ensure success. The VA lender’s book guides companies that fund and originate VA loans. The 4 main loan approval requirements, include:

1. VA entitlement
This requirement stipulates that the borrower must be eligible for VA loans. For instance, veterans looking for VA home loans must satisfy the service and entitlement requirements to get approval. The entitlement in this case, is the amount guaranteed to a particular borrower by the VA.

2. Owner occupancy
Owner occupancy rule requires the borrower to occupy the property he or she is financing within a reasonable
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The list of pre-approved homes include VA-approved condos, townhouses, single family homes and multi-family homes. Specific rules also apply for modular and manufactured homes.

4. Borrower income and credit
To be eligible for VA loan, the borrower must qualify for the applied loan. Since lenders can decide who is a safe credit risk following the guidelines set by VA, veterans or co-borrowers who want to apply for loan must have a steady or sustainable income and satisfactory credit

5. Persons eligible for VA loans
The people eligible to apply for VA loans, such as home-buying military benefit include; veterans, military personnel and their families. The list also includes active-duty personnel, surviving spouses and reserve members.

The Benefits of VA Loans
VA loan programs offer highly attractive and flexible loan terms to recipients. The three key benefits include; lower monthly payments, easy and faster qualification and no money down requirements. It is instructive to note that about 90% of all VA loans do not demand for down payment. The loans are also more affordable compared to your typical loan. Since most VA loans are protected by government, the need to apply for the expensive mortgage insurance is not a requirement.

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