VA Loans

Administered by the Department of Veterans Affairs (VA), the VA loan program was introduced in 1944 to provide home financing ease to those who have served this country in WWII. Today,this program not only benefits veterans and their family members, but also other service members.

VA Loan Guidelines

The VA loan eliminates certain requirements FHA and conventional loan options enforce, including down payment and monthly insurance. Given that the down payment is eliminated from the equation, there is little to no hassle of getting extra financing from gift funds or other resources.

Primary VA Loan requirements include:

  • Veterans applying for the loanhave to meet the minimum requirements of service
  • Active military members can apply after serving 90 days during wartime or 181 days during peacetime/
  • National Guard and military reserve members need to serve 6-years to be eligible. If called for active duty during this time, they cannot submit the loan application till completing the service time listed above.
  • A Certificate of Eligibility (COE), specifying the borrower’s service details is a necessary requirement alongside the loan application.
  • Though the VA loan program imparts a level of leniency regarding credit score requirements, some lenders may request that a borrower holds a credit score of minimum 620.

In addition to above requirements, VA loan borrowers also need to submit W-2 statements,banking information, recent paystubs and proof of income.

To make sure that theVA loan approval processgoes by smoothly, borrowers need to check off on whether or not any of these factors stand in their way:


Every lender and underwriter has different approach to charge-offs, as it affects the borrower’s credit score. Though a charge-off can affect your loan, you may still get approved if your current financial situation is strong and steady.

  • Bankruptcy
    Adhering to the terms of Chapter 7 Bankruptcy, the VA has specified a waiting period of maximum to two years from the bankruptcy discharge rate (not to be confused with bankruptcy filing date). Additionally, the VA loan borrower needs to provide complete details regarding the bankruptcy, and reestablish an approvable credit score.
  • Foreclosure
    A foreclosure can knock-off significant numbers from the borrower’s credit score, which then needs to be reestablished. Conventionally, there is a two-year waiting period between the end of foreclosure andqualifying for a VA loan.
  • Short Sale
    Short sales are eligible for a VA-administered home loan, though the circumstances of the seller will be inspected.

Learn more about the VA loan process by contact the brokers at Mortgage Scenarios. We help homebuyers streamline varying VA loan terms.

Let’s get you a quick approval!