What's The 4-1-1, Soldier?: Special Qualifications On VA Loans

While interest rates continue to remain low on VA (Veterans' Affairs) loans, the special qualifications change regularly and change from state to state and lender to lender. If you put aside the variations from each state and lender, the VA's actual qualifications are quite clear. If you are a veteran or you are on active duty in any branch of the service, you have already met the number one qualification. Here are some of the other special qualifications not afforded to civilians and their families.

No Credit Score or Check Needed

The VA does not ask for or require a credit score or credit check. It is one way that your country thanks you for your service; it does not "punish" you and yours for being away from home and on duty while leaving your bills and financial responsibilities at home with your family. You may run into a few lenders that will still ask for it, but if you do not want to provide that information or you suspect you will be denied your loan based on your credit, you do not have to give those lenders your information.

Your Active Duty Pay Is Sufficient Proof of Income

Chances are, if you are married (with or without children), then your pay is direct-deposited into a joint account so that your spouse can manage the bills while you are away. He or she can provide bank statements showing your proof of income, and you can request paper paystubs to be sent home or you can use the previous year's tax forms to prove income. Usually, all it takes to get VA loans is proof of income from active duty. 

If You Have Filed a Bankruptcy, You Do Not Have to Wait Seven Years

Seven to ten years is the typical waiting game for most civilian borrowers who want to take out a loan or line of credit after a bankruptcy. For veterans and active duty members, a year or two is sufficient under the VA home loan program. It is already an assumption by VA mortgage lenders that there will be difficult financial times when you are not present to pay your bills, or that your spouse may have trouble managing expenses in your absence. Lenders and underwriters look more at what you are able to handle financially after a bankruptcy versus what caused you or you and your spouse to get behind or bogged down before. For additional information regarding VA home loans, contact a business such as Mortgage Master Service Corporation. 

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