The VA Loan Process - Qualifying for the Loan - Fincancial Web

Part 3: Qualifying for the Loan

In Part 2, Determining Eligibility, we discussed who might be eligible to apply for a VA loan and the requirements that must be met for eligibility to be granted. We shall now set our attention upon the actual VA loan qualification process.

In order to qualify for a VA loan, the borrower must be a veteran who meets the eligibility requirements. The veteran must also have available home loan entitlement, which would be listed on his or her Certificate of Eligibility. The loan must be used for an eligible purpose, i.e. to purchase or build a home, to purchase a condominium or townhouse, to repair or improve a home, to purchase and simultaneously repair a home, or to refinance an existing home or existing VA loan to obtain a lower interest rate. In addition, the borrower must intend to occupy the property within a reasonable amount of time after closing the loan. A good credit record and sufficient income to make the loan payments and meet all other financial obligations are also required.

The veteran can obtain his or her own Certificate of Eligibility from the VA website. Banks and mortgage companies can also order the document for the veteran. It is recommended that the veteran obtain the Certificate of Eligibility as early in the house-hunting process as possible, if not before, because this document lists the veteran