The VA also has residual income guidelines regarding how much money a borrower must have left over after all debts and living expenses are considered. If you have been employed at your current job for less than two years, then the lender must verify your prior employment covering a total of two years. Lenders must also verify a minimum of two years employment. The VA requires lenders to verify that your income is stable, reliable, expected to continue during the foreseeable future and enough to pay back your loan. However, the agency does state that “the lender must provide compensating factors if the total debt ratio is more than 41%.”Ī general rule of thumb should be to keep your home costs, which include mortgage payment, property taxes and insurance no more than 25% to 36% of your take-home pay. It’s generally recommended for borrowers to have minimum credit scores of 580 to 620 to qualify for a VA loan.Īs for the debt requirement, the VA does not have a maximum DTI for the loans it guarantees. This includes your assets, DTI ratio, current job status and employment history. Instead, the VA requires the lender “to review the entire loan profile.” This means the financial institution should take all of a loan applicant’s qualifications into consideration, not just credit scores. There is no minimum credit score requirement for a VA loan. National Guard members and reservists are eligible after 90 days of active service, or six years of guard and reserve service.Veterans who served after Augare eligible if they have 24 continuous months of active-duty service with a discharge type, other than dishonorable.Current active-duty members are eligible after 90 days of continuous service during wartime.Requirements vary based on whether you are active duty or a former member of the military, if you served or are serving in the National Guard or Reserve, and when you served. They also tend to be more flexible, allowing for a higher debt-to-income (DTI) ratio and lower credit scores, and they don’t require mortgage insurance. VA loans usually have no or low down payment requirements, and lower interest rates than traditional mortgage products. You can check the full list of eligibility here. You can apply for your COE online, by mail or your lender can get it for you. A Certificate of Eligibility (COE) from the VA is required. Given that the mortgage loan is backed by the VA, you must be a veteran, active-duty service member, a member of the National Guard, reserve or the surviving spouse of a veteran to qualify for a VA loan.