Usually, for an active duty service member or Veteran to be eligible for a Texas Vet or VA Mortgage, they will need to have served according to the following:
- 181 Days of Peacetime Active Duty Service
- 91 Days of Wartime Active Duty Service
- 6 Years of Reserves or National Guard Service
- You are the spouse of a service member who was killed in the line of duty
Debt to income ratio (DTI) is the commonly used ratio to determine how much a borrower can qualify for. However, Veteran Mortgages are primarily reviewed using what is known as the residual income calculation. This calculation determines if a Veteran has enough income to cover living expenses after paying the mortgage, housing expenses, taxes and other debts like car payments or credit cards.
There is not a minimum credit score requirement per the VA guidelines. However, like most lenders, we do have a minimum score. Our minimum credit score for a VA Loan is a 580.
If you have had a bankruptcy in your past, you could still be eligible for a VA Loan.
- Under a Chapter 7 Bankruptcy:
- If the bankruptcy was discharged over 2 years ago, it can be disregarded.
- If the bankruptcy was discharged in the last 1 to 2 years, the lender will need to analyze the credit risk to determine if the borrower meets the VA requirements.
- If the bankruptcy was discharged within 12 months, it generally is not possible to determine the Veteran’s credit risk.
- Under a chapter 13 Bankruptcy:
- The lender will need to ensure that the Veteran has made at least 12 months’ worth of payments and the Bankruptcy Judge approves of the new credit.
If you have had a foreclosure in your past, this does not necessarily disqualify you from a Texas Vet or VA Loan.
- If the foreclosure that was finalized more than 2 years from date of the purchase of the new home, it can be disregarded.
- If the foreclosure was finalized between 1 to 2 years from date of the purchase of the new home, the lender will need to analyze the credit risk and determine if it is possible in reference to the VA credit guidelines.
Certificate of Eligibility
In order get a VA Mortgage, you will need a VA Certificate of Eligibility (COE). When you apply, we will obtain your VA Eligibility Certificate through the ACE (Automated Certificate of Eligibility) system we have access to as an approved VA lender.