Loans backed by the Department of Veteran Affairs are now gaining popularity. More and more veterans and military men look for this flexible lending option without down payment. Active military, veterans and surviving spouses are eligible for the VA Loans, but should be first pre-qualified. Get to know what VA home loan qualification procedures are if you fall under one of the above-mentioned categories.
The VA department does not issue VA mortgage loans but provides guarantees on a certain part of each mortgage. This part of the loan can be covered in case the borrower fails to pay the loan back.
The loans of such kind are issued by the banks and financial institutions approved by the Department of Veteran Affairs able to extend financing on homes through the program.
The VA Department demands that a special financing condition is met by the applicants. It is known as residual income, essential monthly money amount remaining after major expenditures. The benchmarks for this income are predefined and the borrowers should meet them.
Find out how to calculate the monthly mortgage payment to make sure it fits your budget and residual income is enough to get the VA home loan.