To be eligible for a VA loan, you must first obtain a Certificate of Eligibility (COE), which is the official document that proves you meet the VA’s service requirements. The VA has specific requirements for veterans, active-duty service members, and some surviving spouses based on the length and type of service. For example, wartime veterans generally need at least 90 consecutive days of active duty, while peacetime veterans need at least 181 days.
Once you have your COE, the lender will then evaluate your credit and income. While the VA doesn’t set a minimum credit score, most lenders have their own requirements, typically a score of 620 or higher.
Lenders also review your debt-to-income (DTI) ratio and residual income—the amount of money you have left over each month after paying your major expenses—to make sure you can afford the mortgage.
The property itself must also meet the VA’s Minimum Property Requirements (MPRs). These requirements ensure the home is safe, sanitary, and structurally sound. An appraiser will check for things like a working heating system, a secure roof, and proper drainage.
The home must also be free from hazards, such as wood-destroying insects or lead-based paint, and have safe access from a street or road.