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 ranges from 580 to 620. If your credit score is just below that we can work with you to help raise it a few points in order to help get you qualified.
If you have had a bankruptcy in your past, you are still eligible for a VA Loan. A Chapter 11 Bankruptcy must be 12 months since the discharge date and a Chapter 7 Bankruptcy must be 24 months since the discharge date. Credit history since the discharge date must be acceptable.
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.