VA Purchase Benefit

Through their dedicated service to the country, military service members and veterans qualify for a range of benefits earned during their tenure. Among these benefits is the opportunity to participate in the VA Home Loan program, offering qualifying veterans the chance to purchase a primary residence without the need for a down payment.

While the VA Loan caters specifically to those who have served, meeting certain service conditions is crucial for eligibility:

• Completion of 90 consecutive days of service during wartime.
• Completion of 181 days of service during peacetime.
• More than 6 years of service in the National Guard or Reserves.
• Being the spouse of a service member who died in the line of duty or as a result of a service-related disability.

To initiate the VA Loan process, applicants need to obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. Merchants Home Lending can assist in obtaining this document, typically within minutes, eliminating the need to have the COE in hand to commence the loan process.

VA Loan applicants can also secure their Certificate of Eligibility by completing a Certificate of Eligibility Request Form (VA Form 261880), available for download through the Veterans Administration portal.

In terms of income requirements, VA Loan borrowers don't need to meet a specific income threshold, but they should have stable, reliable income to cover monthly expenses, including the new mortgage payment. The VA also mandates that borrowers maintain a certain amount of residual income after covering major expenses, ensuring they have a financial cushion for family needs and emergencies. This emphasis on residual income contributes to the VA Loan having one of the lowest foreclosure rates among major lending options.