VA loans offer low interest rates, no down payment, and no private mortgage insurance—but you’ll need to meet certain requirements to qualify. Here’s what lenders and the Department of Veterans Affairs look for when approving a VA home loan.

1. Meet Military Service Requirements
To qualify, you must be an eligible veteran, active-duty service member, or certain surviving spouse. Eligibility depends on your length and type of service—usually at least 90 consecutive days of active duty during wartime, or 181 days during peacetime. You’ll need a Certificate of Eligibility (COE) from the VA to verify this.

2. Credit and Income Standards
The VA doesn’t set a minimum credit score, but most lenders prefer a score of 620 or higher. Your debt-to-income ratio (DTI) also matters—typically below 41%. Lenders want to ensure you can handle your mortgage comfortably alongside other obligations.

3. Occupancy Requirement
VA loans are meant for primary residences, not investment properties. You’ll need to move into the home within 60 days of closing, although exceptions exist for deployed service members.

4. Stable Employment and Income
Consistent income helps demonstrate repayment ability. W-2 employees can use recent pay stubs and tax returns, while self-employed borrowers provide profit and loss statements and previous tax filings.

5. The VA Funding Fee
Most borrowers pay a VA funding fee, which helps sustain the program for future veterans. The fee ranges from 1.25% to 3.3% of the loan amount depending on your down payment and whether it’s your first or subsequent use. It can be financed into the loan.

Conclusion
Qualifying for a VA loan is often easier than people think—as long as you meet the basic service and financial requirements. With the right documentation and a knowledgeable lender, you can take advantage of one of the best mortgage options available.