VA LOAN BENEFITS
NO PREPAYMENT PENALTY
MINIMUM CREDIT SCORE
NO PMI
NO BORROW LIMITS
NO DOWN PAYMENT
While a VA mortgage's qualifying requirements are more relaxed than a conventional loan, an applicant still needs decent credit and sufficient income to buy a home. And the home being financed must serve as the primary residence. Credit score requirements The VA doesn’t set a minimum credit score to qualify for a loan. Instead, it requires a lender “to review the entire loan profile to make a lending decision,” according to the VA. VA loan debt-to-income ratio The VA also doesn't specify a maximum debt-to-income ratio. But if the total debt-to-income ratio is over 41%, lenders must provide proof of an applicant’s ability to repay the loan. Down payment requirements Under most circumstances, you don't need to make a down payment. However, if the home's purchase price is greater than its appraised value, you may have to make up at least a portion of the difference.
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