Getting a VA loan to purchase a home with requires more than just being eligible based on your service record. You have to meet various other conditions beyond your military service in order to qualify for a VA loan.

Thing #1: Know What You Can Use the Loan For

First, you need to understand what you can use the loan for. A VA home loan comes with certain use restrictions. It can be used to purchase a single-family residence. It can be used to purchase a modular home, manufactured home, condominium, or new construction home. You can also use a VA loan to purchase a multi-unit property, such as a duplex, if you intend to live in a unit.

A VA loan cannot be used for any property that is designed to produce an income. For example, you can't use the loan to purchase an investment property, a farm, or a vacation home.

Thing #2: You Need a Certain Debt-to-Income Ratio

Second, you need a certain debt-to-income ratio in order to qualify for a VA loan. The exact debt-to-income ratio varies by region, but generally, it is better to show that your income exceeds the debt payments you make on a regular basis. You can improve your chances of meeting the debt-to-income ratio by increasing your income and by paying down your debt.

Thing #3: Clean Up Your Credit Score

Third, you are going to need to clean up your credit score. Your credit score matters when you are applying for a VA loan. You need to meet a certain minimum credit score, and you can score better interest rates and loan terms with a higher credit score.

You need to make sure you are paying any loans you already have on-time. This includes car loans, student loans, and credit card payments as well as other debt. Making your payments on-time and working to pay off any debt you have will help to improve your credit score. It can take a while for your credit score to improve, so work on this in the year leading up to when you want to purchase a home. 

If you want to get approved for a VA loan, you need to make sure you understand the type of property you can purchase with a VA loan. VA loans are designed for single-family residencies not for profit-making properties. You need to keep your debt-to-income ratio low, and for the most favorable terms, you need to clean-up your credit score.

For more information on VA home loans, talk to a mortgage company in your area.