VA Loan

VA Mortgage Requirements and Regulations for 2022

posted in: Mortgages

For those of you who have served our country in the military, there is a loan program designed for veterans so they can achieve home ownership as their civilian counterparts can. For first-time home buyers, this will at least provide the basics of this loan program and for others who are refinancing their existing VA loan, a reminder course. I urge you to contact the professional loan officer at 7th Level Mortgage to over the particulars of your loan since this is only a guide.  The very first criterion is to know what veterans and branches are eligible. They are:

  • National Guard and Reserve Members
  • Active-duty service members (not active duty for training)
  • Surviving spouses of veterans
  • NOAA officers
  • The US Military, Air Force, or Coast Guard Academy Cadets
  • The US Naval Midshipmen
  • Retired Veterans with an honorable discharge

You will need a copy of your Certificate of Eligibility and your DD214.

The actual loan requirements for this type of loan are listed below; however, because everyone’s situation is different, you may need to provide your loan officer at 7th Level Mortgage other documents as well.

Credit Score

The VA does not have a credit score minimum; however, most lenders want each applicant to have a credit score not less than 620.

Down Payment

Because the VA loan has a zero down payment program available, the lender’s requirements may vary. Please ask your loan officer about your particular loan application and the requirements needed to be met for approval.

Residual Income

This is a very critical calculation because the lender needs to ensure that you have enough cash on hand to meet your other obligations as well as the ability to support your dependents.

DTI

The maximum DTI the VA will allow is 41%.

Property Requirements

The property you are buying MUST be your primary residence and you must take occupancy no more than 60 days after closing. Additionally, the property must meet all the minimum safety standards as set forth by the VA. Any repairs needed to ensure safety must be met before the certificate of occupancy is issued and the property is moved into.

Closing Costs

There is a 1% closing cost maximum imposed on all VA loans. These fees include origination, credit reports, flood certification, and tax monitoring fees. Discount points and the VA funding fees are NOT included in this calculation.

Funding Fees

The VA Funding Fee is mandated by the VA and is typically between 2.3% to 3.6% of the loan amount. This can vary and is determined by your type of service, the size of the down payment, and whether or not this is your first time obtaining a VA loan. If you do not have the cash upfront for the fee, it can be rolled into the loan amount.

Reserves

The typical amount of reserves needed is at least two months’ worth of monthly payments.

Loan Limits in 2022

The loan limit for 2022 is now $548,250. If you are buying in what has been determined to be a high-cost region, ask your loan officer at 7th Level Mortgage to find out about the limit specific to that area. The primary benefits of this loan program are lower interest rates than an FHA loan,  no down payment, no mortgage insurance, easier credit requirements, and additional advantages for disabled veterans.

The loan officers and processors at 7th Level Mortgage have been specifically trained for originating and processing these loans, but that is not all. The owner himself is a veteran, so he has a thorough understanding of what it means to serve, will never mislead you, and will do everything he can to make sure your loan closes on time and as quickly and easily as possible. With three key rates set to go up in 2022, why would you wait to call 7th Level Mortgage?  I would get all your documents together, find the house you want to buy, and get in touch with the selling agent. If you are going to refinance your VA loan and you need cash out, put together a plan and make that call…call 7ht Level Mortgage TODAY!