When it comes to loan products, the process never looks less challenging. You have so many things to worry about – from down payment requirements to mortgage insurance. However, one mortgage does take away such issues. If you are an eligible borrower, you can apply for a VA home loan bad credit in Aurora, IL. The minimum credit score requirement is 550, so it is a relief for many borrowers. So, in this article, we mention the important things about VA home loans.
See Whether You are Eligible
How long did you serve the country? Your VA eligibility links to this answer. Veterans, active-duty military service members, and eligible spouses are generally eligible for the program. Of course, the certificate of eligibility does not seal the deal.
If you served 90 days straight during wartime, you could apply for a VA loan. If your service duration is shorter than 90 days and was discharged due to service-related injury, you would be eligible for the program. However, veterans serving during peacetime could also apply for the VA loan in Aurora, IL. In this case, their service duration extends to 181 days. You can get hold of the mortgage if you can approve your current service exceeding 90 days.
In the context of eligible spouses – the qualifying criteria depend on duration and age. Also, a spouse is eligible when the veteran is a prisoner of war or a recipient of Dependency and Indemnity Compensation benefits.
Besides the military service criteria, there are other essential requirements to keep in mind. You should watch out for your debt-to-income ratio. As long as your DTI ratio is under 41%, you are good to go. If you do your research the right way, you can find lenders allowing a 50% DTI ratio. Of course, the credit score requirement keeps varying. You should work on it until the score improves.
Find Out the Right Home
Qualifying for the VA home loan is never enough; you should focus on purchasing a suitable home. VA home loans have certain requirements regarding the properties. Therefore, you can only apply for a manufactured home, single-family home, and condo.
Using VA loans for construction also works. Moreover, the VA qualifying requirements do not allow you to get hold of investment properties. If you find a suitable property, you should consider the VA loan application process.
