Alabama VA Home Loans:
Eligibility, Getting Started and FAQs
At 1st United Mortgage, it’s our job and honor to help veterans, active military members, & their families with the American dream of buying a home.
Thanks to the VA Home Loan Program, that process is easier for qualified applicants. In fact, it is possible to purchase a home with no down payment, low interest rates and even low credit scores. We have a team of experienced staff members trained and ready to help clients with eligibility, document requirements, and answering questions about Alabama’s state specific benefits. Our highly trained VA home loan specialists work hard to keep your mortgage process stress-free and simple.
Some of our clients are surprised to learn that a 620 credit score is not necessary for VA loan approval. With 1st United Mortgage, we can approve loans with credit scores starting at 580. If you do not yet qualify, we also have a credit score rehabilitation program that can help you get there.
VA Mortgage Options in Alablama
The VA loan is only available as an earned benefit for military service. Click here to see if you qualify.
We also offer many other loan options for those not eligible for a VA loan, including FHA & other conventional loan options.
Military in Alabama
Alabama has always had a strong military presence, with three Army bases, a Coast Guard and the widely recognized Maxwell Gunter Air Force Base. With mild winters and plenty of job opportunities for veterans, Alabama is one of the top states for military retirees. It’s especially welcoming for small business owners, with an estimate of approximately 11% of Alabama’s businesses owned by veterans.
Here is a list of some the places we serve most often with VA loans in Alabama. Click the name to learn more about each one.
VA Loan Eligibility
- No private mortgage insurance or PMI
- Flexible credit and income requirements
- Consistently lower rates than other loan products
Your VA loan entitlement is a hard-earned benefit and we are here to help you utilize it. With unmatched buying power and flexibility, the VA loan program represents the simplest and most powerful path to homeownership for many veterans, service members and military families.
What is the VA Loan entitlement?
Am I eligible as a spouse of a deceased veteran?
Some non-military personnel, including both unmarried and remarried spouses are eligible for the VA home loan program. These include:
How can I get my Certificate of Eligibility?
The COE, or Certificate of Eligibility, is a formal VA document that certifies what entitlement, if any, a military member has for a VA home loan. The Certificate of Eligibility is a crucial for the process and is the way to verify a veteran’s eligibility and entitlement to the benefit. Prospective borrowers cannot complete the lending process without a COE. Veterans can contact the VA directly to obtain their Certificate of Eligibility, but it may take a few weeks to receive it. At 1st United Home Loans, we use an automated system to get your Certificate of Eligibility within moments.
Who is eligible for the VA Loan?
There are basic eligibility requirements for veterans and service members, along with members of the Reserves, the National Guard and surviving spouses.
If Any of the Following are True You May Be Eligible for a VA Loan :
• You served 181 days during peacetime (Active Duty)
• You served 90 days during war time (Active Duty)
• You served 6 years in the Reserves or National Guard
• You are the spouse of a service member who died in the line of duty or because of a service-connected disability.
Verification of a veteran’s eligibility for a VA loan is through a COE, or Certificate of Eligibility. These can be obtained directly from the VA, which typically takes a few weeks. Another option is to contact a lender, who can obtain your COE far more quickly. At 1st United Home Loans we cab get your Certificate of Eligibility in minutes.
It’s important to remember that not everyone eligible for a VA loan ultimately secures one. Borrowers will still need to satisfy credit and underwriting standards, which are set by both the lender and the VA.
When purchasing a home, does the VA Loan allow for cash back options?
What is the difference between eligibility and prequalification?
How do basic and bonus entitlements work?
How do I restore my entitlement once I pay off my previous VA Loan?
What is 2nd Tier Entitlement?
Can I use the VA Loan for a second home or rental properties?
VA Loan Qualification
Who sets the VA Loan guidelines, the VA or my lender?
There are broad requirements and guidelines for military borrowers as set by the VA. There are no income requirements or credit requirements; the VA simply requires that borrowers represent a satisfactory credit risk.
Still, it’s VA lenders who ultimately issue the loans. That means they have their own unique requirements, especially regarding credit scores. Prospective borrowers should understand they have to satisfy both guidelines – those set by the VA and the ones set by agency approved lenders.
If I have bad credit, can I still get a VA Loan?
Can someone else sign on the loan with me?
What income can I use to qualify for a VA Loan?
VA-approved lenders require prospective borrowers verify enough steady income to meet their monthly expenses (including a new mortgage payment). Lenders want a minimum of two years of stable employment, and proof that income comes from the same employer and job type. Sources of verification for income include:
• Base pay & allowances
• Non-military employment
• Retirement income
• Rental income
• A spouse’s income
• Alimony/child care
Overtime work, part-time jobs, second jobs and bonuses, must still show the same two-year period of stability. Self-employed veterans or those who make a living in the building trades, doing seasonal work or working mostly on commission have additional paperwork requirements. Tax returns for the previous two years will be essential in verifying income.
How long do I have to wait after bankruptcy to get a VA Loan?
Rate And Loan Costs
What fees should I expect to pay for my VA Loan?
What is the VA Funding Fee, and how do I calculate it?
How are rates for VA Loans determined?
Does my credit score affect my VA Loan rate?
VA Loan Guidelines
Can I borrow more than the value of my home with a VA loan?
Can I have more than one VA loan at a time?
How complicated is VA financing?
When purchasing a home, does the VA Loan allow for cash back options?
What is the maximum VA Home Loan?
Can I borrow extra money to make home improvements?
VA Loan Basics
How do I get prequalified and what happens afterward?
What if I don’t have copies of my discharge paperwork?
Can I pay off a VA Loan early?
When is the VA Loan not my best option?
Can the VA Loan help me lower my monthly bills?
What types of homes can I buy with a VA Loan?
The vast majority of military buyers use their VA loan to purchase or refinance an existing single-family home. But veterans interested in purchasing a condo or building a home from the ground up can also utilize a VA loan. You can use a VA loan:
- To purchase a residence that’s owned and occupied by the veteran.
- To refinance an existing VA-guaranteed or direct loan in order to lower the current interest rate.
- To refinance in order to take out cash.
- To repair, alter or improve a residence owned by a veteran.
- To simultaneously purchase and improve a home
- To make energy-efficiency improvements in conjunction with a VA purchase or refinance loan.
- To purchase up to four one-family residential units in a condo development approved by the VA. One of those four units must be used as the borrower’s primary residence.
- To purchase a farm residence to be owned and occupied by the veteran. The property cannot be a working farm or an income-producing property.
What Our Clients Are Saying
Ready To Start Today?
Get started immediately with our quick quote form or complete the full online application & get pre-qualified now.