VA Loans: Understanding Eligible Assets

Let’s talk about assets. In our offices, it used to be that the only assets we needed to think about were bank accounts and capital investments. Those are still the big ones, but we’ve noticed that our Pennsylvania clients are thinking outside the box when they arrive at the mortgage desk.

When applying for a VA loan in Pennsylvania, , certain assets are a no-go. If you’re planning to get creative with the assets that you bring to the table, talk to MortgageDepot first. Our experienced loan officers will help you determine which assets you can use to secure the best mortgage for your needs.

Approved Assets for VA Loans

If a VA loan looks like the best option, you’ll need liquid assets to cover your down payment (if applicable) and closing costs. You might also need asset reserves, although this doesn’t occur in every case. Here are a few acceptable liquid asset sources:

• Checking account funds
• Savings account funds
• IRA accounts
• Pensions
• Trust funds
• Mutual funds
• Brokerage accounts
• Certificates of deposit

Here’s a note on bank accounts: VA loans don’t require a bank access letter on joint accounts. This condition applies even if the joint account holder is non-borrowing.

Now for the Restrictions…

Now that we have a handle on the liquid assets that the VA allows, let’s talk about the assets on their “no” list. Here are the main ones:

• Cryptocurrency: If you want to use cryptocurrency as a liquid asset for a VA loan, you’ll need to convert it to U.S. dollars before it qualifies.
• Gifts of equity: If a seller agrees to gift equity to you by selling their house for less than market value, you cannot use this additional equity as an eligible asset.
• Gift funds: You can use gift funds as a liquid asset, but you must have donor documentation.

Contact Us Today!

If you need a mortgage in Pennsylvania, MortgageDepot can help! Connect with us today for more information about qualifying for a VA loan.

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