I just wanted to get an idea of whether or not I qualify for a VA home loan before I actually went to the VA so I don’t waste my time or anybody else’s. I’m 22, fresh out of the military (honorable regular ETS – 3.5 years), a full time college student using the GI Bill (and receiving BAH from it), and I admit that I really don’t know anything about buying a house.
I want to buy a house that costs $100,000 even. The house has been on the market for a while and has had its price cut down several times in the last year or so. There’s nothing wrong with the house, it’s just old (built in 1941).
I have great credit and no criminal record or anything (still hold my secret security clearance from the military). I can make payments no problem at all, but the problem is that I’m self employed and the majority of my income is from my VA disability pay ($395/month) and my GI Bill BAH ($2406/month), so I can’t really show them any paystubs or anything like that for when they ask for proof of income or whatever.
Is there any way that I could still get a VA loan to buy this house?
Thanks!
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Would I Qualify For A Va Home Loan? (going To The Va Later Today)?
Posted on February 5, 2013.
Credit score and income are the issues they look at. You are abit short on income but real close. The house has been on the market for a long time. get your loan approved then make an offer lower than asking. They are expecting it so offer 90K or 100K but they pay all closing costs.
A big misconception is that the VA gives loans. It does not. It only guarantees the loan that the bank will give you. The guarantee is to the lending bank in the event you default on the loan.
The first step is to get qualified. This is a fairly simple process. You will receive a VA loan qualification form. This form is issued to anyone on active duty with more than 6 months of service. It is also issued to any honorably discharged veteran.
Once you have this form you may present it to the realtor that is helping you with the house hunt. If you are buying the home without a realtor, then the escrow office will require the form.
Buying a home varies from state to state. Some states require a realtor attorney to complete the process.
Good luck!
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If you haven’t figured out yet by reading the other comments, the VA does NOT loan money! You must qualify for a loan through a bank or other mortgage lender. The VA only guarantees the loan.
1. Go to the following website to get a Certificate of Eligibility. That will tell you whether you qualify for a “VA loan” or not. https://www.ebenefits.va.gov/ebenefits-p…
2. If you do, then find a bank that deals with VA loans; not all do.
3. The bank is going to determine whether you qualify for a home loan based on your income. This has absolutely nothing to do with the VA!
4. Once you find a bank willing to loan you the money, the VA will appraise the house to determine how much they are willing to guarantee. This is actually the most difficult part of the process, as the appraisal can take 2 – 3 weeks, or longer. Until the home is appraised the bank can’t do much.
5. The VA “no down payment” option is not a gimmick, it’s a benefit. Your measly $5,000 would NOT qualify you for a conventional loan, so don’t act like your Mr. Moneybags!
6. I’m guessing that you won’t get a loan for $95K! The reason being is that you don’t have enough sustainable income. Your GI Bill benefits only last for 36 months, then what are you going to pay your mortgage with? Disability pay of $395 won’t come close to paying your mortgage payment, much less your homeowners insurance and property taxes!
7. BTW, if you spend that massive $5K in savings, how are you going to pay for move-in costs? I’ve now spent about $5K just moving in, and I’ve already got a house full of furniture!
I doubt any banck is going to give you a loan without a source of income.
Are you eligible? Yes. Will you get one? Probably not.
The VA doesn’t loan you money. A Bank does. The VA just backs the loan.
The Navy Chief is right on, the VA does NOT give loans they guarantee them so a bank will hopefully give you a loan.
You should not have any problems. I used a VA loan to get my first house.