At any given time, a large number of US military troops are deployed overseas. Despite being distant from home, active-duty military personnel abroad can obtain a mortgage — a VA loan or another form — and purchase a home remotely. We’ll look at how active-duty military personnel who are currently outside the United States can buy a home in Virginia with a VA loan.
Can active military get a VA loan?
Yes, active-duty military members are eligible for VA loans. According to the United States Department of Veterans Affairs, if you are a serving member, you can qualify after serving for 90 days without taking a break.
To qualify for a VA loan as a veteran, the minimum active duty service requirement depend on when you served. You must have served for between 90 days and 24 months or if you served for the full period for which you were called to active duty, you willbe eligible. You will also be eligible if you served for a minimum number of days before being discharged for a hardship or reduction in force.
VA loan credit and income requirements
Participating lenders often require a credit score of 620 or higher. The lenders also prefer a debt-to-income (DTI) ratio of 43 percent or below to qualify for a VA loan.
Some lenders accept lower credit scores but may request additional verification or charge a higher interest rate. Stable income is also required, which may include your military pay, allowances, and any other revenue.
Be prepared to present your most recent Leave and Earnings Statement (LES), which includes information regarding your current military status, income, and basic allowance for housing (BAH).
BAH generates income, which might boost your borrowing capacity and reduce your DTI ratio. As of 2024, BAH charges are 5% of the national average housing costs based on rank and dependency status. However, these rates can vary and cane range from $85 to $194 per month.
VA loan residency requirements
If you use a VA loan to buy a property, you must live in it as your primary residence for at least 12 months.
Obviously, this can be problematic if you are active military and deployed overseas.
However, deployed active-duty service men are granted temporary duty status. As a result, they immediately satisfy the occupancy criterion.
In general, borrowers have a “reasonable time” to move in after their VA loan closes.
“Reasonable” is defined as 60 days, although it can be extended if you can attest that you will move into the home by a certain date within 12 months after closing.
If you are on active service and are unable to meet the “reasonable” criteria, a spouse or dependent kid can live in the home in order to satisfy occupancy requirements.
However, if you are deployed, you have already met the occupancy requirements. According to the VA, single or married service members deployed from their permanent duty station are classified in temporary duty status and can meet the habitation requirement.
This is true regardless of whether a spouse will be available to inhabit the property before the veteran returns from deployment.
How to apply for a VA loan while overseas
Can you use a VA loan overseas? Definitely while deployed. (Note that you cannot utilize your VA loan to acquire international property; the VA only insures loans for purchases in the United States and its territories.)
Navigating the purchasing a property process and applying for a loan while you’re not physically there can be difficult, but the following actions can help:
- Get your Certificate of Eligibility (COE): This shows your military service and qualifies you for a VA loan. Fortunately, you can request your COE online or by mail while deployed, allowing you to prove your military service from anywhere in the world.
To get your COE, you are going to have to submit documentation such as your Leave and Earnings Statement. Additionally, you might have to provide your military orders or a statement of service from your superior officer that confirms your active-duty status and the length of your service.
- Find your lender: To obtain a VA loan overseas, you must engage with a lender that specializes in VA loans. Most lenders offer websites with all of the information you need to get started, including loan officers’ email addresses and online loan applications. Find the best VA loan rate by comparing offers from at least three lenders.
- Get a real estate agent: You’ll be unable to look at residences in person, so you’ll need someone you can trust to evaluate them for you. A good real estate agent may go a long way here. You’ll have to put in extra effort to find an agent you can trust.
- Find your house: You can house hunt from anywhere with the help of your realtor, any friends or relatives you may have in the neighborhood you’ve chosen to buy in, and internet tools like 3D walkthroughs and video tours. But before you make a purchase, you won’t be able to view the house in person. Seek an appraisal and inspection of a property before making a commitment.
- Buy your house: You can complete your home purchase if the seller accepts your offer and the lender grants you a VA loan. However, you will have to manage all of the VA loan and house purchase documentation online.
Nevertheless, you should be able to complete everything from your deployed location because of e-sign capabilities. After your deployment, a residence will be ready for you.
Also keep in mind that you can designate an individual or organization with a power of attorney (POA) to act on your behalf while buying a property while deployed. To grant a POA, you will require assistance from a lawyer, legal clinic, or Judge Advocate General.
Depending on your circumstances, any of these experts may also suggest taking further legal action. Military personnel frequently give their spouse a power of attorney (POA) so the spouse can sign documents and do other duties on their behalf.