Which of the following is a basic eligibility requirement for a VA loan?
Correct Answer
C) Valid Certificate of Eligibility (COE)
A valid Certificate of Eligibility (COE) is required to obtain a VA loan. The VA does not set minimum credit score requirements or maximum DTI ratios, and VA loans require no down payment.
Why This Is the Correct Answer
A valid Certificate of Eligibility (COE) is required to obtain a VA loan. The VA does not set minimum credit score requirements or maximum DTI ratios, and VA loans require no down payment.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
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Under what circumstances can a Qualified Mortgage include a prepayment penalty?
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A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A 68-year-old borrower is considering a reverse mortgage on their $400,000 home with no existing mortgage. Which factor will have the GREATEST impact on determining the loan amount they can receive?
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A borrower applies for a VA loan with a credit score of 580 and a debt-to-income ratio of 45%. After closing, which entity would be the most likely purchaser of this loan in the secondary market?