If you are either an active member of or are retired from the armed forces, I thank and salute you, and would like to inform you that if you are considering purchasing a property, a VA mortgage is worth looking into.
Zero Percent Down
While zero percent down is unheard of today in mortgage lending, it still happens with VA mortgages. While it is zero percent down, there are still other expenses, such as closing costs and potential tax escrows that need to be considered.
In order to qualify, you will need to be able to provide a VA Certificate of Eligibility, which you can either obtrain from the VA or with the help of your mortgage professional.
Credit score profiles are similar to those required in order to obtain an FHA loan. This means you would need a score of around 640, and would be ineligible if you have any recent foreclosures, short sales or bankruptcies. Income ratios also need to be equivalent to those required in other types of mortgage programs, and VA qualifications are somewhat more detailed in the calculation of your monthly expenses than for other types of mortgages.
With a VA mortgage, you are able to purchase only a home you intend to occupy, and would be unable to purchase an investment property. If you are married, you will be able to add your spouse to the mortgage; otherwise, you will be the sole borrower.