VA Loan Guidelines and Qualifications

When Congress created the VA loan program in 1944, it did so with the intent to aid our country's military members in home financing. Since then, the program has made homeowners out of more than 18 million veterans.

VA loans' success can partially be attributed to their less restrictive requirements. Simply knowing if you are eligible for a VA loan is the first step on the path to home ownership.

How do I know if I qualify for a VA loan?

Most of VA loan borrowers can describe themselves any one of three ways. They are either a:

• military member who served 181 days on active duty or 90 during ware time;
• member who spent at least six years in the Reserves or National Guard;
• spouse of someone killed in the line of duty.

For the most part, fitting into one of those three categories may qualify you for a VA loan. Next, fill out a Certificate of Eligibility from the VA website to show that you can qualify for the program.

What are some other general VA loan guidelines in qualifying?

Prospective borrowers shouldn't rule themselves out based on poor credit history. There is no credit score standard set by the VA, but since lenders actually issue the loans they look for credit scores around 620.

Lenders will also expect that you can make mortgage payments in addition to any other expenses you make.

If foreclosure or bankruptcy is in your past, you may still qualify for a VA loan, too. Almost all conventional financing options would not be as lenient. To find out if you're eligible, contact a VA-certified lender.