Guide: How to Qualify for a VA Loan in Atlanta Georgia

If you're a veteran or currently serving in the military, you can usually buy a home in Atlanta without putting any money down with the VA loans. These loans will generally give you much better interest rates than the standard loans and don't require you to pay any mortgage insurance - it makes buying a home in Atlanta's housing market easier for you.

Getting qualified for a VA loan is actually pretty easy for you. You'll need to get a Certificate of Eligibility to prove your military service and meet the money requirements for the application. Many military people in Atlanta typically use these loans because the standard loans can be so tough for first-time buyers - you'd need a big down payment and might need higher credit scores for those.

Once you know what you need to qualify, you're one step closer to your own home in Atlanta. The truth is that many veterans don't know just how much easier buying a house can be with the benefits you've earned through your military service. Take some time to learn about the requirements, though, and you might find that owning a home in Atlanta is well within your reach now.

Let's talk about how your military background helps you qualify for this to help get you into a new home!

Eligibility And Certification Process

VA loans can give you some of the best deals when you're a military member or veteran looking to buy a home. You'll need to meet some of the service requirements first, though.

If you're a military veteran, you can generally qualify for a VA loan after serving at least 90 days in wartime or 181 days during peacetime. Are you serving on active duty? You can become eligible after just 90 continuous days of service.

If you serve in the National Guard or Reserves, you can still get these loans, too. But you'll need a bit more time in uniform - at least six years of service in many cases. Are you the surviving spouse of a veteran who died in the line of duty or from a service-related disability? You might qualify for them as well. These can help military families like yours find the homes they can comfortably afford.

You'll want to get your Certificate of Eligibility before you start looking at houses in Atlanta - this document shows the lenders that you qualify for a VA loan. You can get your COE through the VA website, via mail, or with help from your lender. Most lenders can pull this up for you electronically in just a few minutes, which can save you time and hassle.

Confirming your eligibility should be your very first step. Many of the veterans living in Atlanta don't know that they can use these benefits. Last month, we helped an Army veteran who thought that he couldn't qualify because he only served for three years. He couldn't believe it when we told him that he could buy a home without putting any money down at all.

Houses in Atlanta tend to sell very fast. When you have your Certificate of Eligibility ready, you can move faster when you find a home that you love. With a VA loan, you won't need to make a down payment, and you'll typically get lower interest rates than with standard loans. As a bonus, you won't have to pay for any private mortgage insurance - that puts extra money back in your pocket every month.

You might worry that the whole process seems too tough for you. The paperwork can look a bit stressful when you first see it all. Consider working with a lender who focuses on VA loans - they'll make everything much easier for you. These lenders know what documents you need and how to help you through each step of the process. They manage these loans every single day, so you don't have to figure it all out on your own.

Credit And Income

When the lenders look at your VA loan application, they'll check your credit score first. Most of them generally want to see a score of at least 620 before saying yes to you. Some might accept lower scores. But you'll need to answer more questions and fill out some extra paperwork. Your credit history naturally matters, too, because it shows how you've handled your money over time.

Your work history usually plays a big part in getting approved for a VA loan. The lenders like to see that you've held steady work for about two years - this helps them feel more confident that you can keep up with your monthly payments. Just know that if you've changed jobs quite a bit, it might raise some problems, so try to stay at your latest job if you're looking to apply for a loan soon.

There's no set minimum income needed for a VA loan, which works out well for veterans. What tends to matter more is how your monthly income goes toward paying your debts. The lenders look at your debt-to-income ratio, and they generally want this number to be 41% or lower.

So here's what that means in some real numbers. If you bring home $5,000 each month, the lenders probably don't want you spending more than about $2,050 on your debt payments - this counts your future mortgage and your car payments and your credit cards and your other loans.

The lenders also look at your residual income - the money you have left after paying your bills. They normally want to make sure that you have enough to cover costs like food, gas, and any unexpected costs that pop up. How much you need can depend on where you live and how many people are in your family.

The reality is that many veterans worry that their finances aren't strong enough for a loan. The encouraging news is that VA loans tend to be more flexible than conventional loans. Veterans with credit scores in the 630s and moderate debt levels often get approved without any problems. Some of them even qualify after being at their job for just one year.

Down Payment And Funding Options

You might need to make a down payment in a few situations. Just to give you an example, if you're buying a home that's more expensive than its appraised price, then you'll need to cover that price difference yourself. You might also need to put some money down if you've already used part of your VA loan benefit before. Having some savings ready helps you out in these cases.

Remember that VA loans often come with a funding fee instead of the private mortgage insurance that other loans need. The fee tends to range from 0.5% to 3.6% of your total loan amount, based on your military service and if you've used a VA loan in the past. You can actually add this fee to your loan balance so you don't have to pay it upfront, which will keep your initial costs lower when you're buying a home.

If you have a service-connected disability, the VA waives this funding fee completely - it'll save you thousands of dollars on your home purchase. Veterans actually qualify for this waiver, so be sure to check with your lender about your status.

Remember, with VA loans, the sellers can sometimes pay your closing costs, too, if they agree to it. That means you can sometimes move into your new home with very little money coming out of your own pocket. In some markets, sellers might agree to cover these costs for you, which can save you a few thousand dollars at closing.

Property Use And Standards

When you're using VA loans in Atlanta, you'll usually need to follow some laws about the homes that you can buy. You also need to have a home that meets the VA's "Minimum Property Requirements." These are the basic standards that make sure that your home is suitable for you to live in.

The VA has created these requirements to make sure that your home is comfortable for you. Your house normally needs to have working water and electricity. You'll also need to have enough space to live in without feeling cramped. And there has to be a safe way for you to get to your property from a street or road. These might feel like obvious parts to you. But they help to make sure that you end up with a decent place to call home.

Your new home also generally needs to follow Atlanta's local building codes and zoning laws - it can get a little tough with older houses that might need some updates to match current standards. Keep in mind that the VA takes these laws very seriously because they want you to have a well-built home for yourself. The older homes with character can still work for you. But they may need some improvements first.

Last year, I helped an Army veteran who loved a cute bungalow in East Atlanta. When we got the home inspection back, we found some electrical faults that didn't meet the VA standards. Luckily, the seller was actually willing to fix these faults for us, and my client was able to move into his dream home after all. This happens often in my experience - sellers will work with you to get their property up to the VA standards.

You can still use a VA loan if you want to have a home where you'll do some business in it. Do you need a home office or want to have a workshop in your garage? That works fine as long as you mainly use the property as your primary home. The VA mostly cares that you'll actually live there yourself, not that you'll never work from home at all. Just make sure that the business part doesn't take over the whole house.

The VA uses its own appraisal process to check these requirements for you, which is different from the standard home inspection that you might get. The VA appraisers look specifically at what the VA cares about - that helps to protect you from ending up with a house that has some serious defects in it. You should try your own separate inspection, too, since the VA appraisal doesn't catch everything that a full inspection might find for you.

How Can I Secure A VA Loan?

You'll want to take a few steps to get ready for your VA loan in Atlanta before you start house hunting. Just know that your first job is your Certificate of Eligibility (COE) - this document shows that you qualify for VA benefits and you can usually get it online through the VA's eBenefits portal in just a few minutes. Veterans are surprised at how quickly this part can be for them.

Your loan experience tends to go much more smoothly when you find the right lender for you. Not every mortgage company out there works with military loans frequently or understands all aspects of them. Try to find some lenders who manage VA loans - they'll know the process well and help you stay clear of common problems along the way.

Getting pre-approved for your loan before house hunting can give you a real benefit in the market. Sellers can see that you're serious about buying, which puts you ahead of other possible buyers who could be interested. Your lender will ask for some financial facts from you. Having these documents ready can speed up the process for everyone involved.

Your pre-approval actually takes just a few days to finish up completely. After that, you'll have a clear picture of what you can afford to buy, which will save you from falling in love with homes outside your budget. Many veterans in Atlanta say that learning about your price range gives them more confidence during their search for a home. Why look at $500,000 homes if your budget is only $350,000?

The VA generally orders an appraisal once you find a home you want to buy for yourself - this part helps to make sure the house meets standards and is worth what you're paying for it. Basically, the appraiser checks to see if the home is structurally sound - giving you an extra layer of protection that comes with your VA benefits. Think of it as having someone in your corner who's making sure you're getting a favorable deal on your purchase.

Your loan enters into underwriting as the final step - your lender often checks your information again. They'll take another look at your employment, income, and credit to make sure nothing has changed since you applied. The process can sometimes seem like it's taking forever. But most Atlanta veterans say the wait pays off when they finally get their keys. Remember, though, your lender wants your loan to close just as much as you do!

Moving to Atlanta?

A VA loan might feel a bit stressful. But once you know what to look for and follow the process in order, it can become much easier. First off, you'll need your Certificate of Eligibility, then you'll need to meet credit and income requirements, and you'll need to find a home that meets the VA standards.

VA loans usually make homeownership more accessible for veterans like you since you won't need to make a down payment, and you'll typically get better interest rates than with conventional loans.

Georgia residents can also benefit from the state's Veterans Home Loan Program for some extra support with their home purchases. Take some time to look into your options before you choose. What do you care most about in your new home loan? Or maybe it's where you want to live?

Finding your perfect Atlanta home gets much easier when you work with people who know the area well. Atlanta has so many different neighborhoods - each with its own character. You'll want someone to help you get through these. That's what we do at the Justin Landis Group. Are you looking for a place in a quiet suburb? Or maybe a home near the buzzing city center? Our team helps you find what you want in a home. 

Just reach out to us, and let's help you find that perfect dream home!