A VA Certificate of Eligibility from the Department of Veterans Affairs is necessary to be approved for a VA home loan. A COE essentially demonstrates to your lender that you meet all of the VA’s qualifications based on your service history and duty status.
Are you considering purchasing a home in 2022? Wondering if you qualify for a VA home loan? Here are the latest VA loan guidelines, how to qualify for a VA loan, and an overview of all other VA loan requirements for 2022.
A VA loan is a mortgage issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs. This type of loan has no down payment requirement, competitively low-interest rates, limited closing costs, and no need for Private Mortgage Insurance (PMI). The VA home loan is also a lifetime benefit, which means you can use the VA guaranty multiple times.
DTI stands for “debt-to-income” and refers to the ratio of your monthly debt payments over your monthly gross income. Essentially, DTI compares your overall debt to your overall income. This calculation is used by mortgage lenders to determine if you qualify for a mortgage loan or not.
Are you planning to buy a home in 2022? This year’s housing market is shaping up to be another competitive seller’s market. However, with increasing mortgage rates, the 2022 housing market will hopefully have a larger inventory compared to 2021. This is good news for homebuyers, but the landscape will still be competitive, meaning you want to be as prepared as possible when you start the homebuying process.