VA loans are backed by the U.S. Department of Veterans Affairs (VA) and available to those who meet specific military service requirements. Below is a complete list of eligibility criteria.
1. Service Eligibility to Qualify for a VA Loan
To qualify, you must meet one of the following criteria:
Active-Duty Service Members
Must have served at least 90 consecutive days of active duty.
Veterans
Must have served at least:
90 days of active service during wartime, or
181 days of continuous active duty during peacetime.
National Guard & Reserves
Must have served at least:
6 years in the Selected Reserve or National Guard AND
Received an Honorable Discharge, or
Were activated for at least 90 days under federal orders.
Surviving Spouses
Unmarried spouses of a veteran who died in service or from a service-connected disability may qualify.
Spouses of POWs (Prisoners of War) or MIAs (Missing in Action) may also be eligible.
***** Even if you do not fit any of these qualifications you may still qualify for a VA Loan. Their are lots of little nuances on additional provisions that qualify people who have served. Contact us and we can get you in touch with one of our local VA Loan Specialists who can help us out ****
VA Loan Credit & Income Requirements
Unlike conventional loans, VA loans have flexible credit and income guidelines. Here’s what you need to know:
2. Credit Score Requirements
The VA does not have a minimum credit score requirement.
However, most lenders prefer a score of at least 620.
Some lenders may approve lower scores with strong financial history.
3. Debt-to-Income Ratio (DTI)
The recommended DTI limit is 41% (total monthly debts compared to gross income).
Some lenders allow higher DTIs with compensating factors, like savings or strong credit.
4. Steady Income & Employment
Stable income is required, but VA loans allow non-traditional income sources like VA disability benefits.
Self-employed veterans may qualify with two years of consistent earnings.
Property Eligibility for a VA Loan
Not all properties qualify for a VA loan. Here’s what you need to know:
5. Property Types Allowed
The home must be your primary residence. Eligible properties include: ✔️ Single-family homes✔️ Townhomes✔️ Condos (must be VA-approved)✔️ Multi-family homes (up to 4 units) (if you live in one unit)✔️ Manufactured homes (must meet VA standards)
6. Property Types NOT Allowed
❌ Investment properties❌ Vacation homes❌ Fixer-uppers needing major repairs
Additional VA Loan Benefits & Considerations
No Down Payment – VA loans do not require a down payment in most cases.
No PMI (Private Mortgage Insurance) – This saves hundreds of dollars per month.
Lower Interest Rates – VA loans typically offer lower rates than conventional loans.
No Loan Limits – There are no VA loan limits for eligible borrowers with full entitlement.
How to Apply for a VA Loan in Wisconsin
If you believe you meet the VA loan eligibility requirements, here’s how to get started:
Find a Realtor that is savvy with VA Loans that can recommend you to great VA lender who are local. Madison's Best Veteran Realtor
Find a VA-Approved Lender – Work with a VA loan specialist (like me!).
Obtain a Certificate of Eligibility (COE) – This proves your VA loan eligibility.
Get Pre-Approved – Understand your budget before house hunting.
Find Your Home – The most fun part!!
Close on Your Home – Enjoy homeownership with no down payment!
Final Thoughts: Ready to Use Your VA Loan?
A VA home loan is one of the best benefits available to veterans, helping you buy a home with no down payment and low rates. If you're in Wisconsin, including Madison, Sun Prairie, or Dane County, I can help you navigate the home buying process with ease. Click Here to contact me or visit my real estate site www.integrityhomeswi.com
📞 John Reuter,
The Veteran Realtor
608.669.4226
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