Created in 1944, by the U.S. government, the VA loan program helped service members purchase homes when they returned home then and they still do today. Not a loan, but a loan guarantee, a VA loan can save a borrower thousands of dollars on the purchase of a home. A buyer must meet VA loan requirements in order to be eligible to purchase a home through this program. Following is a simple checklist of requirements and items you will need to gather, to get a VA loan.
In order to receive the benefits of a VA loan you must have:
- Ninety consecutive days of duty during a time of war
- 181 days of duty during times of peace
- Six years of National Guard or Reserve duty
- Or, be the spouse of a service member who died in the line of duty or resulting from a service related disability.
If you don’t meet these requirements, you will not be eligible as VA loans are reserved for service members who meet these criteria. VA loans requirements in a simple checklist will help you get organized so that you can find your new home.
Gather your Required Documents
Military Information
- Copy of your DD214, if you are separated from the military
- Certificate of eligibility (COE)
- If you are active duty, you will require a statement of service from your commanding officer verifying that you are active duty.
Personal Information
- Name, address and phone number.
- Previous addresses of residency of the last two years.
- Date of Birth
- Schools and years attended
- Social security of all applicants
- Copy of valid ID
- Where you plan to purchase your home
- Number of dependents and their ages
Income/Employment
- Name, address and phone number.
- List of employers for the last two years
- Thirty days of pay stubs
- W2’s for the previous two years
- The self-employed will require tax returns from the last two years with all schedules attached.
- Proof of all other income including social security, pension, retirement or 1099 income
- Divorce decree or death certificate, if applicable
Credits and Liabilities
- List of what you owe on student loan, auto loan, credit card, or other consumer debt. A credit report is will be pulled by your loan officer, because it is a VA loan requirement but you need to verify that the information on the report is current and true.
- Monthly childcare expense, if applicable
- Bankruptcy discharge papers or explanation of derogatory credit, if applicable
- Documents to prove errors on your credit report, if necessary.
Documents for Property Purchase
- Accepted purchase contract, signed by you and the buyer
- Appraisal
- The name and address of the insurance company you will use for your homeowners insurance policy.
- Contact information for the Homeowner’s Association, if applicable.
- Although the lender doesn’t require a homeowner inspection, it is a good idea to get one and make the contract contingent on its findings. This can save you thousands of dollars if items of material value, like HVAC systems, roofs, plumbing or electrical issues.
- Property purchased with a VA Loan must be owner occupied. You are not allowed to rent property or use these loans for investment property.
Assets
- Include 60 days of bank statements, including checking and savings accounts. You will need enough money in these accounts to cover any closing costs that you might have. Also, bring 60 days of statements for any retirement accounts that you may have.
- List of any other real estate owned by you, if applicable.
Get Loan Pre-approval
You don’t have to wait to get all of the above information together before you can get pre-approval. Once a loan officer pulls your credit report and looks at your income and general monthly expenses, they will have a good idea about what you will be able to spend on a home. With this information, you can begin your home search. Purchasers, who are pre-qualified, have more buying power than those who aren’t, in the real estate market. An agent or prospective seller will be more inclined to work with you over a buyer in a weaker position.
Now go find your New Home
You aren’t limited to single-family homes when purchasing with a VA loan. VA loan requirements allow you to purchase the following:
- New Homes
- Previously occupied homes
- Fixer-uppers
- Single-family
- Condominium if it is a VA approved project.
- Townhomes if they are VA approved projects.
- Mobile homes, dependent on the lender
You can use the services of a real estate agent or use a site like Movoto to find your new home, anywhere in the country.
Make an Offer on your choice of home
Once you find the home that you can afford and that best suits the needs of you and your family, or the best deal, make an offer. With accepted contract in hand, you can now proceed to the closing. Go through the above list and make sure that you have everything that is listed. One piece of paper can gum up the works, sometimes crashing the deal.
Close the Deal
You have an offer, a closing date, and the appraisal is in the hands of the lender, now you need to make sure that you have everything together for the closing. This includes all of the above items, as well as a picture ID and a checkbook to cover any costs that you may owe at closing. Knowing how to go through the process and verifying eligibility before you ever begin will make this process much easier and get you into your new home sooner.
2 Point Highlight
VA loans requirements in a simple checklist will help you get organized so that you can find your new home.
A buyer must meet VA loan requirements in order to be eligible to purchase a home through this program.
