VA Entitlement, Certificate of Eligibility, Income, & VA Funding Fee

VA Entitlement

To determine if you are eligible for a VA-insured mortgage loan you must have a COE (certificate of eligibility) from the Dept. of Veterans Affairs.

Your Alliance lender will be happy to assist you in obtaining one or you may visit the VA website to request your certificate.

VA home loans do not have a minimum credit score. The Department of Veterans Affairs will guarantee a mortgage loan regardless of the borrowers FICO scores.

Please keep in mind that a COE does not guarantee loan approval. It merely states your eligibility for a VA loan.

The VA entitlement is a dollar amount that the VA will guarantee a home loan. Basic entitlement for a 100% loan is $36,000. This entitlement figure is found on your COE (certificate of eligibility)

If you have full or restored entitlement you will potentially qualify for the max loan amount in your area

You will need to speak to a VA Alliance lender to determine how much of an entitlement you have available.

What is the VA funding fee?

B the VA loan program doesn’t require mortgage insurance, in order to help fund the VA program there is a one-time VA funding Fee.

The funding fee amount will depend on the amount of the loan and whether or not you’re using a down payment.

The majority of funding fees are rolled on top of the loan. However, you have the option of paying the funding fee up front as well.

Funding fee is not required if you meet the following:

2020 VA Credit Score Requirements

VA home loans do not have a minimum credit score. The Department of Veterans Affairs will guarantee a mortgage loan regardless of the borrowers FICO scores.

Banks set their own minimum credit requirements. Most VA lenders want to see at least a 580 score to approved the loan application.

Lenders will look at more than just your FICO score. They take into account your entire credit history.

FHA loans are also available for those with lower credit scores.

If you have a credit score below 580 it’s highly recommended that you improve your credit score before applying. (Please send this link to the credit section)

Or if you have at least a 10% down payment you may qualify for an FHA loan with a credit score as low as 500.

The VA loan limit in low cost areas of the country has been increased to $484,350 in low cost areas, and up to $726,525 in high cost areas of the country. This also includes the higher cost areas of the country too.

Allowable VA Income

VA Funding Fee Chart

Regular Military

Down payment

0%

5-10%

10%+

Fee (first-time buyer)

2.15 percent

1.5 percent

1.25 percent

Fee (subsequent use)

3.3 percent

1.5 percent

1.25 percent

National Guard and Reserves and Chart

Reserve & National Guard Personnel

Down payment

0%

5-10%

10%+

Fee (first-time buyer)

2.4 percent

1.75 percent

1.5 percent

Fee (subsequent use)

3.3 percent

1.75 percent

1.5 percent