Minimum credit score
Qualifying for Veteran Home Loans
A Veteran who has used their entitlement to previously purchase a home, may have entitlement left to purchase another one. If you previously purchased a home using your VA Benefits then you might still have some of that “Entitlement” available to you for the purchase a new home. To Calculate Maximum Entitlement available, consider the following:
- If your previous home was purchased using a VA Loan, and that loan was paid off by the new owners, the full entitlement may have been restored.
- If you sold your home to someone, and allowed them to assume your VA Loan, then you might have the full entitlement restored, if one or more of the purchasers were also Veterans.
- If you still own the home, and you are renting it out – you might be able to purchase a new home using your partial entitlement, but there are several restrictions.
VA Loan application
- Copies of your W2 statements for the past two years, so your gross household income can be confirmed,
- Copies of your previous two pay stubs,
- Documentation of other assets (checking accounts, savings accounts, financial investments, trust funds, etc.),
- If self-employed, two years of consecutive tax returns will be required.
- The Veteran also needs to supply their DD 214 and Certificate of Eligibility (COE)
Purchase and construction loans
|Type of Veteran||Down Payment||First Time Use||Subsequent Use|
|Regular Military, Reserves/National Guard||None|
10% or more
Cash-out refinancing loans
|Type of Veterans||Percentage for First Time Use||Percentage for Subsequent Use|
|Regular Military, Reserves/National Guard||2.3%||3.6%*|
- The higher subsequent use fee does not apply to these types of loans if the veteran’s only
prior use of entitlement was for a manufactured home loan.
Other types of loans
|Type of Loan||Percentage for Either Type of Veteran|
Whether First Time or Subsequent Use
|Interest Rate Reduction|
|Manufactured Home Loans||1.00%|
- Veterans who previously lived in a home they had to then rent out will typically qualify for a no appraisal Interest Rate Reduction Refinance. The Veteran's Administration also allows Veteran Homeowners to refinance from a Conventional loan to a VA mortgage Loan. This process, however, does require an appraisal.