VA Home Loans In El Paso

Private lenders, such as banks and mortgage companies, offer VA Home Loans. The VA guarantees a portion of the loan, allowing the lender to provide you with more advantageous terms. With no down payment, no mortgage insurance, and flexible credit standards, a VA loan enables qualified active-duty military members, qualified veterans, and qualified surviving spouses to finance a house. By understanding how it works, you can decide if a VA loan is the best mortgage for your plans to buy or refinance a home.

VA Loan Eligibility Requirements

The Department of Veterans Affairs states that if you served for at least this long, you’ve met the minimum service requirement:

• 90 days straight of active duty;
• 90 consecutive days during a time of war;
• 181 days of service during peacetime;
• Serving in the National Guard or Reserve for more than six years.

You will need a Certificate of Eligibility (COE) to show the lender that you qualify for a VA home loan. The Certificate of Eligibility proves your service dates; hence, you are eligible for a VA loan. You can obtain your COE online or by mailing a completed VA Form 26-1880 to the VA processing center in your area. 

Although the VA guideline doesn’t require a minimum credit score, most lenders require a credit score of at least 620 to qualify for a VA home loan. Down payment is not required on VA loans, but borrowers must meet the maximum debt-to-income ratio of 41% to qualify. You must also pass the “residual income test,” which calculates how much expendable income you have left based on your take-home pay.

VA Approved Properties

The VA requires confirmation that every home financed with a VA loan is “safe, sound, and sanitary.” This applies to residences with one to four units, prefabricated dwellings attached to the land, modular homes, and VA-approved condominium units and planned unit projects (PUDs).

Typical VA minimum property requirements include evidence that:

• Each unit provides adequate space for living, cooking, sleeping, and sanitation;
• If the residence is in a rural location, there is private road access;
• The drainage system moves water away from the dwelling;
• The local health authority provides access to potable water.
• Apply for a VA Loan in El Paso

If you are an eligible serviceman/woman or a surviving spouse, you must check if a VA home loan suits your needs. Capital Home Mortgage is a direct mortgage lender and servicer who can guide you throughout the lending process.

Call us at (915) 283-3949 to speak with one of our VA Loan Specialists. We will answer all your questions and address every concern to ensure you are well-informed about VA home loans in El Paso.