VA Home Loans

   A VA home loan is a mortgage program specifically designed for eligible veterans, active-duty service members, and surviving spouses. It is guaranteed by the Department of Veterans Affairs (VA), providing favorable terms such as low or no down payment and competitive interest rates.

VA loans are guaranteed and administered by the Department of Veterans Affairs and are offered as a benefit to qualified individuals who have served in the armed forces. The significant advantage of a VA loan is that a down payment is not required. A VA loan may be your best bet if you are a qualified veteran and wish to purchase a home with little or no down payment. If you have funds that you want to use for a down payment, it is wise to compare Conventional loans with VA loans to determine which financing type is best for you.

 To obtain a VA home loan, eligible individuals must apply through an approved lender. The process involves obtaining a Certificate of Eligibility (COE) from the VA, meeting lender requirements, and providing necessary documentation.

Qualification for a VA loan typically requires meeting service eligibility requirements, obtaining a valid COE, meeting lender credit and income standards, and fulfilling any additional criteria set by the lender.

To officially determine if you are a qualified veteran, you must request a Certificate of Eligibility (COE) from the VA. This certificate indicates that the VA has determined you are eligible for a VA home loan and shows the available entitlement or guaranty amount. To obtain a certificate of eligibility, complete the 'Request for a Certificate of Eligibility for VA Home Loan Benefits (VA Form 26-1880)' form and submit it to the VA. This form and additional information about VA home loan eligibility requirements are available on the VA website at

Apply for a VA home loan by choosing an approved lender, completing the loan application, providing necessary documentation (such as income and credit history), and working with the lender through the approval process.

To get pre-approved, submit a VA loan application to an approved lender. The lender will review your financial information and issue a pre-approval letter, indicating the amount you may qualify for.

VA home loan requirements include meeting eligibility criteria based on service history, obtaining a Certificate of Eligibility (COE), demonstrating creditworthiness, and meeting the lender's income and debt standards.

VA mortgage rates vary and can be obtained directly from approved VA lenders. Rates are influenced by market conditions, individual credit profiles, and other factors.

VA home loans typically do not require private mortgage insurance (PMI). The VA guarantee eliminates the need for PMI, contributing to cost savings for borrowers. A VA Funding Fee may apply.

What is the VA Funding Fee? The VA funding fee is a one-time fee paid to the Department of Veterans Affairs. While most Veterans pay 2.15%, this fee ranges from 0.5% to 3.3%, depending on the loan type, if you've used a VA loan before or if you have a down payment greater than 5%.

VA home loan benefits include no or low downpayment requirements, competitive interest rates, no PMI, flexible qualification standards, and the backing of the VA guarantee.

There is no strict limit on how many times a qualified individual can use a VA loan. However, certain entitlement limitations may apply based on the individual's VA loan history.

 Lenders become approved to offer VA loans by meeting VA requirements, demonstrating financial stability, and obtaining VA approval through the Lender Appraisal Processing Program (LAPP) or the Automatic Lender Appraisal Program (ALAP).

Yes, VA home loans are eligible for refinancing through various VA loan refinance programs, such as the Interest Rate Reduction Refinance Loan (IRRRL) or Cash-Out Refinance. The eligibility and terms depend on the specific program and lender requirements.

  • Insurance and Requirements: VA loans are insured and administered by the federal government. Because the government guarantees a portion or the total dollar amount of these mortgage loans, VA loans generally require lower down payments and have lower qualification requirements than conventional loans. Some traditional loans allow for low down payments as well. It is always a good idea to compare all eligible loan programs before determining which is best for your situation. Your loan advisor can help you find which program is right for you.
  • Eligibility: Only qualified veterans can obtain VA loans.
  • Loan Amounts: VA loan limits vary by county and typically adjusted annually. They are based on median home prices.
Purchase and rate & term refinances will allow the Veteran to borrow 100% of the value of the home or purchase price plus the VA funding fee. Cash-out refinances limit loan amounts to 90% of the home's value plus the VA funding fee.