VA loans are a popular home financing option for veterans, active-duty service members, and certain members of the National Guard and Reserves. Understanding the requirements for VA loans in Oklahoma is essential for those looking to take advantage of this benefit. Below, we outline everything you need to know about VA loan requirements in the state.

Eligibility Requirements

To qualify for a VA loan in Oklahoma, applicants must meet specific eligibility criteria:

• Service Requirement: Veterans typically must have served a minimum of 90 days of active duty during wartime or 181 days during peacetime. National Guard members and Reservists need to have served for six years to be eligible.
• Discharge Status: Applicants must have been discharged under conditions other than dishonorable to qualify for VA benefits.

Certificate of Eligibility (COE)

Obtaining a Certificate of Eligibility (COE) is a crucial step in the VA loan process. The COE verifies that you meet the service requirements and determines your entitlement amount. Here’s how to obtain your COE:

• Online Application: Veterans can apply for their COE through the VA’s echelon portal or via the VA’s website.
• Mail Application: You can also request a COE by filling out VA Form 26-1880 and sending it to the appropriate VA regional loan center.
• Through Your Lender: Many lenders can help you obtain your COE during the loan application process.

Credit Score and Income Requirements

While the VA does not set a minimum credit score, most lenders will look for a credit score of at least 620 to qualify for a loan. Additionally, lenders will assess your income to ensure you can afford your monthly mortgage payments. A strong employment history and steady income can significantly bolster your application.

Debt-to-Income Ratio

The VA has guidelines regarding debt-to-income (DTI) ratios, which are a critical factor in the approval process. The standard allowable DTI ratio for a VA loan is typically around 41%, though exceptions can be made for compensating factors such as high credit scores or substantial savings.

Property Requirements

Not all properties qualify for VA loans. To ensure eligibility, properties must meet certain requirements:

• Primary Residence: The home must be intended as the borrower’s primary residence.
• Minimum Property Standards: The property must meet the VA’s minimum property requirements for safety, sanitation, and soundness.

Funding Fee

The VA funding fee is a one-time charge required to help finance the program. This fee can vary based on the type of service, the amount of down payment, and whether it’s the first or subsequent use of the VA loan benefit. Although it adds to the loan costs, veterans with service-connected disabilities may be exempt from this fee.

Loan Limits

While there are no specific loan limits for VA loans as of 2020, lenders might impose their limits based on the borrower’s entitlement. Understanding your entitlement is important, and it can affect how much you can borrow without making a down payment.

Conclusion

Acquiring a VA loan in Oklahoma can be a straightforward process as long as you meet the eligibility requirements and prepare the necessary documentation. Whether you’re a first-time homebuyer or looking to refinance, being informed about VA loan requirements can help streamline your journey home.