VA Home Loans: A Complete Guide
Since 1944, the VA Loan program has assisted more than 25 million veterans in becoming homeowners—oftentimes with no down payment. For eligible surviving spouses, active-duty personnel, and U.S. veterans, this benefit is more than a mortgage; it’s a well-deserved gateway to homeownership and financial security.
VA loans continue to be one of the best ways to buy or refinance a home on very favorable terms today.
But what exactly is a VA loan? In simple terms, it’s a mortgage backed by the U.S. Department of Veterans Affairs (VA), designed to help those who’ve served our country buy, refinance, or improve a home with unique advantages.
In this guide, you’ll learn everything you need to know—from eligibility and benefits to the application process and common FAQs—so you can make informed decisions about your home financing journey.
In this Article
What is a VA Loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty military personnel, and certain surviving spouses. It frequently allows for no down payment, offers competitive interest rates, and VA loans don’t require private mortgage insurance (PMI).
Unlike conventional loans, VA loans are not issued directly by the government. Instead, the VA guarantees a portion of the loan, reducing risk for lenders and enabling them to offer more favorable terms. If a borrower defaults, the VA steps in to cover part of the lender’s loss, which translates into lower costs and fewer barriers to entry for qualified borrowers.
Real-Life Veteran Story
“After serving in the Marine Corps for four years, I struggled to save for a down payment. With a VA loan, I bought my first home without putting down a cent. It felt like my service was truly recognized and rewarded.”
– John R., Marine Veteran, Ohio
2025 VA Loan Requirements
VA loan requirements are designed to ensure that eligible veterans and service members can secure affordable, safe housing. Meeting these requirements involves fulfilling specific credit, income, property, and appraisal criteria tailored to protect both borrowers and lenders.
Property Requirements
- The home must be your primary residence and should be a standard single-family property.
- Unique properties may not meet VA appraisal standards, as the VA prioritizes safe, secure housing.
Credit and Income
- To qualify for a VA loan, you must meet the lender’s credit and income standards.
- The VA generally prefers a debt-to-income (DTI) ratio of 41% or less.
- Exceptions may apply if your residual income exceeds VA requirements by 20% or if you have tax-free income.
Inspection and Appraisal
- A home inspection is recommended to check for major defects.
- A VA-approved appraiser will confirm the home meets the VA’s Minimum Property Requirements (MPRs) for safety and structural soundness.
Service Requirements
To qualify for a VA loan, you must meet specific service requirements. These vary depending on your status:
Veterans:
- At least 90 consecutive days of active service during wartime.
- At least 181 days of active service during peacetime.
- Honorable discharge or discharge under honorable conditions is required.
Active-Duty Service Members:
- Currently serving with 90 days of continuous active duty.
National Guard and Reserves:
- At least six years of service or 90 days of active service under Title 10 or Title 32 orders.
Surviving Spouses:
- Unmarried spouses of service members who died in the line of duty or from a service-related disability.
- Some remarried spouses are eligible if the remarriage occurred after the age of 57.
VA Loan Benefits
VA loans offer several benefits that make them a great option for veterans, active-duty service members, and surviving spouses. These benefits include:
No Down Payment
The ability to buy a home with no down payment is the hallmark benefit of VA loans. Since its inception, this program has enabled qualified Veterans and service members to purchase homes without the burden of saving for a hefty down payment.
Unlike most conventional loans that require a down payment—often starting at 3% or more—VA loans eliminate this financial barrier. Saving for a down payment can take years for many military families, making this benefit a game-changer. For those who have the cash, opting for a VA loan allows them to allocate that money toward other investments or savings goals.
Lower Interest Rates
VA loans consistently offer some of the lowest average interest rates in the mortgage market, according to Optimal Blue data. For the past two years, VA loans have maintained this position, making them an attractive choice for Veterans.
A lower interest rate helps buyers save significantly over time, both in monthly payments and overall loan costs. It also increases purchasing power, allowing Veterans to qualify for larger loans with the same monthly budget.
Flexible Credit Guidelines
VA loans are designed to make homeownership accessible, especially for Veterans with less-than-perfect credit. They feature more forgiving credit standards compared to other loan programs.
While credit score requirements vary by lender, VA loans often accept scores lower than those required for conventional loans. At Veterans United, for instance, borrowers typically need a FICO score of 620. Additionally, VA loans offer flexibility with debt-to-income (DTI) ratios and shorter waiting periods after financial hardships like bankruptcy or foreclosure.
Closing Cost Limits
VA loans come with protections to limit the financial burden of closing costs. Lenders are restricted on how much they can charge Veterans for loan origination and processing.
Sellers in a VA loan transaction can cover all the buyer’s loan-related closing costs and provide up to 4% of the loan amount in concessions. Furthermore, certain fees and costs are prohibited from being charged to VA borrowers, further reducing out-of-pocket expenses.
No Private Mortgage Insurance
Conventional loans typically require private mortgage insurance (PMI) for borrowers who put down less than 20%, adding an ongoing monthly cost. FHA loans also come with upfront and monthly mortgage insurance premiums.
VA loans eliminate the need for PMI altogether, even with zero down payment. This not only saves Veterans money but also maximizes their purchasing power, enabling them to afford more home for their budget.
Lifetime Benefit
One of the most significant advantages of VA loans is that they are a lifetime benefit. Eligible Veterans, active-duty service members, and surviving spouses can use their VA loan benefits multiple times throughout their lives, provided they meet the eligibility criteria and have sufficient entitlement remaining.
Whether you’re buying your first home, upgrading to a larger property, or purchasing a vacation home, the VA loan program remains accessible. Even if you’ve defaulted on a previous VA loan, you may still regain eligibility after repaying the loan or restoring your entitlement. This flexibility ensures that your VA loan benefit can support your housing needs at every stage of life.
Current VA Loan Rates for
| VA Loan Type | Interest Rate | APR | Points |
|---|---|---|---|
| 30-Year Fixed VA Purchase | 5.750% | 6.223% | 1.000 |
| 15-Year Fixed VA Purchase | 5.125% | 5.773% | 0.250 |
| 20-Year Fixed VA Purchase | 6.490% | 7.088% | 1.875 |
| 30-Year Fixed VA Jumbo Purchase | 6.000% | 6.374% | 2.000 |
| 30-Year VA Cash-Out Refinance | 6.375% | 6.721% | 0.500 |
| 30-Year VA Cash-Out Jumbo Refinance | 6.375% | 6.721% | 0.500 |
| 30-Year Streamline (IRRRL) Refinance | 5.990% | 6.314% | 2.000 |
| 30-Year Streamline (IRRRL) Jumbo | 6.500% | 6.691% | 0.500 |
Disclaimer
Rates shown reflect current VA loan products available through VA Loan Network.
15-year VA Fixed-Rate Loan:
An interest rate of 5.25% (5.75% APR) is for the cost of 1.50 Point(s) ($4,125.00) paid at closing. On a $275,000 mortgage, you would make monthly payments of $2,196.10. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 100%, as VA loans allow eligible veterans to secure financing with no down payment.
With VA loans, private mortgage insurance (PMI) is not required, leading to significant savings. The loan consists of equal monthly principal and interest payments throughout the loan term.
20-year VA Fixed-Rate Loan:
An interest rate of 5.75% (6.25% APR) is for the cost of 1.75 Point(s) ($4,812.50) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,898.76. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater, and no down payment is required due to the 100% LTV that VA loans allow.
25-year VA Fixed-Rate Loan:
An interest rate of 6.00% (6.35% APR) is for the cost of 2.00 Point(s) ($5,500.00) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,769.29. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater. This loan, with 100% financing and no PMI, follows standard VA loan guidelines.
30-year VA Fixed-Rate Loan:
An interest rate of 6.125% (6.50% APR) is for the cost of 1.75 Point(s) ($4,812.50) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,672.11. Monthly payments do not include taxes and insurance premiums. As with other VA loans, the LTV is 100%, and no PMI is required, which helps reduce long-term costs.
Assumptions:
- Mortgage rates are subject to change daily.
- Actual payments will vary based on your individual financial situation and prevailing rates.
- Certain loan products may not be available in every state.
- Lending services may not be available in all locations.
- Assumes the property is a primary residence, a single-family home, with a debt-to-income ratio under 30% and a credit score of 720 or higher.
- The lock period for these rates is 45 days.
- VA loans do not require private mortgage insurance (PMI).
Please keep in mind that we don’t have all of your financial details. Therefore, the rates and payment amounts displayed may differ from your actual situation. To receive more precise information tailored to your needs, reach out to a VA Loan Network mortgage expert today.
Who is Eligible for a VA Loan?
To qualify for a VA loan, borrowers must meet specific service and eligibility requirements set by the Department of Veterans Affairs. These requirements are based on the borrower’s time in service, type of service, and the nature of their discharge.
Here are the general service requirements for VA loan eligibility:
- 90 consecutive days of active duty during wartime
- 181 consecutive days of active duty during peacetime
- 6 years in the National Guard or Reserves, or 90 days under Title 32 orders (with at least 30 consecutive days served)
- Veterans: Those who have completed the required time in active duty and were discharged under conditions other than dishonorable.
- Active-duty service members: Current active-duty military personnel may also qualify.
- National Guard and Reserve members: Must have completed six years of service or at least 90 days of active-duty service during wartime.
- Surviving spouses: Spouses of service members who died in the line of duty or as a result of a service-related injury may qualify for VA loan benefits.
VA Loan Eligibility Calculator
How VA Loans Compare
Each type of mortgage comes with its own unique benefits and limitations. However, for many Veterans and military families, VA loans often provide a clear advantage when compared to conventional loans and FHA loans, another popular government-backed option.
| VA Loans | Conventional Loans | FHA Loans |
|---|---|---|
| No Down Payment | Up to 20% Down | Minimum 3.5% Down |
| Qualified borrowers can finance 100% of the home price, eliminating the need for any upfront down payment. | Most conventional loans require some form of a down payment, often between 5% and 20%. | FHA loans mandate a 3.5% down payment, making them a popular choice for first-time buyers. |
| No PMI | PMI Required | Upfront and Annual MIP |
| VA loans waive private mortgage insurance, even for zero-down buyers, saving hundreds each month. | Unless you put down at least 20%, most conventional loans require private mortgage insurance. | FHA borrowers pay an upfront mortgage insurance premium and recurring annual premiums. |
| Competitive Interest Rates | Best Rates for Top Credit | Mid-Level Interest Rates |
| VA loans typically have the most favorable rates, ensuring lower monthly payments for eligible borrowers. | Conventional loans offer low rates for applicants with excellent credit and substantial down payments. | FHA rates are lower than conventional rates but still higher than VA rates, on average. |
| Low Origination Fees | Moderate Origination Costs | Higher Origination Costs |
| VA loans have some of the lowest upfront fees, as recorded in recent federal mortgage data. | Conventional loans come with moderate fees, usually higher than VA loans but lower than FHA. | FHA loans tend to have the highest upfront fees among these options, adding to the initial costs of buying a home. |
| Simpler Qualification | Stricter Qualification Rules | Flexible but Limited |
| VA loans are designed to help service members and veterans qualify more easily with lenient credit and income requirements. | Conventional loans usually require higher credit scores, larger down payments, and strict income verification. | FHA loans aim to help moderate-income buyers but are limited in maximum loan amounts and property types. |
More About VA Loans
Who are VA Loans For?
VA loans are ideal for veterans, active-duty service members, and eligible surviving spouses looking to buy a home with no down payment. This option is especially beneficial for those who may not have a high credit score or the savings for a large down payment. VA loans are also a great choice for refinancing existing mortgages.
Lenient Requirements
VA loans are guaranteed by the Department of Veterans Affairs (VA), which protects lenders against potential loss if the borrower defaults. This guarantee makes it easier for veterans to qualify for loans with favorable terms, such as lower interest rates and no requirement for private mortgage insurance (PMI).
How to Qualify for a VA Loan?
- Served at least 90 consecutive days during wartime or 181 days during peacetime.
- VA Certificate of Eligibility
- No down payment required.
- Minimum 620 credit score
- Debt-to-income of 45% or lower
How to Get a Certificate of Eligibility
Obtaining a Certificate of Eligibility (COE) is one of the first steps to qualifying for a VA loan. A COE proves that you meet the VA’s eligibility requirements.
Steps to Obtain a COE:
- Online through eBenefits: The fastest way to apply is through the VA’s eBenefits portal.
- Through a Lender: Many VA-approved lenders can assist you in obtaining your COE through the VA’s online system.
- By Mail: You can submit VA Form 26-1880, the Request for Certificate of Eligibility, by mail. However, this method takes longer.
Documents Needed for a COE:
- Veterans: DD Form 214, which details your military service and discharge status.
- Active-duty service members: A statement of service signed by your commanding officer or personnel office.
- National Guard/Reserve members: Point statements and proof of service if you’ve never been activated.
- Surviving spouses: A copy of the Veteran’s death certificate and marriage license may be required.
What is the VA Funding Fee?
The VA funding fee is a one-time charge paid to the U.S. Department of Veterans Affairs (VA) at the closing of a VA-backed loan. This fee helps cover the cost of the VA’s loan guarantee, protecting the VA lender in case of default.
The fee is calculated as a percentage of the total loan amount, typically ranging from 0.5% to 3.3%, depending on factors such as:
- Down payment: Amount of money put down on the property.
- Loan purpose: Whether the loan is for buying, building, improving, repairing, or refinancing.
- Usage frequency: Whether it’s the borrower’s first time or a repeat use of VA loan benefits.
VA funding fee Amounts:
- First-time use for regular military: 2.15%
- Subsequent use for regular military: 3.3%
- First-time use for Reserves/National Guard: 2.4%
- Subsequent use for Reserves/National Guard: 3.3%
- Interest Rate Reduction Refinance Loan (IRRRL): 0.5%
VA Funding Fee Rate Chart
| Loan Type | Down Payment | First-Time Use | Subsequent Use |
|---|---|---|---|
| Purchase and Construction Loans | None | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% | |
| 10% or more | 1.25% | 1.25% | |
| National Guard and Reserves | None | 2.4% | 3.3% |
| 5% or more | 1.75% | 1.75% | |
| 10% or more | 1.5% | 1.5% | |
| Cash-Out Refinance | N/A | 2.15% | 3.3% |
| IRRRL (Interest Rate Reduction Refinance Loan) | N/A | 0.5% | 0.5% |
| Native American Direct Loan (NADL) | N/A | 1.25% | 1.25% |
| Loan Assumption | N/A | 0.5% | 0.5% |
Veterans with service-connected disabilities are exempt from paying the funding fee.
What Types of Homes Can You Buy With a VA Loan?
A VA loan gives veterans and active-duty service members the chance to buy different kinds of properties that fit their lifestyle and needs.
- Single-Family Homes: These traditional, detached houses are the most popular choice for those looking for space and privacy. They’re great for families and generally meet VA standards if maintained properly.
- Condos: Often a practical option for first-time buyers, condos are usually more affordable than single-family homes. However, the entire condo project needs VA approval, so be sure to check with your lender.
- Manufactured Homes: These homes, often called mobile homes, need to follow HUD construction rules to qualify. They’re a flexible option but come with a few extra requirements.
- Modular Homes: Similar to manufactured homes but generally easier to finance with a VA loan. They’re built in sections in a factory but assembled on a permanent foundation, making them more comparable to traditional homes.
- Multi-Family Properties: If you’re interested in rental income, you can buy a property with up to four units—just remember, you’ll need to live in one of them as your primary residence. This setup lets you live in one unit while potentially renting out the others.
How Do VA Loans Compare to Other Mortgages?
VA loans offer several advantages over other types of mortgages.
Down Payment: Unlike most mortgages, which generally require a down payment of at least 3.5 to 20%, VA loans allow eligible borrowers to purchase a home with no down payment.
- Interest Rates: VA loans often come with lower interest rates compared to conventional loans, making them more affordable over time.
- Credit Flexibility: VA loans have more relaxed credit requirements than many other mortgage options.
- Mortgage Insurance: Private Mortgage Insurance (PMI) is not required with VA loans, unlike most conventional mortgages.
However, there are some limitations to VA loans:
- Funding Fee: VA borrowers pay a one-time funding fee, which can be as high as 3.3% of the loan amount.
- Primary Residences: VA loans are typically restricted to primary residences rather than investment or vacation properties.
- Initial Equity: With no down payment requirement, buyers might start with less home equity than they would with a conventional mortgage.
Read more:
What are the Types of VA Loans?
The Department of Veterans Affairs (VA) provides several loan options tailored to veterans and active-duty service members:
1. VA Purchase Loan
Designed to help eligible borrowers buy a home with favorable terms. This loan often allows for zero down payment and typically offers better interest rates than those provided by private lenders, making homeownership more accessible and affordable.
- Offers 100% financing, eliminating the need for a down payment, making homeownership achievable for more veterans.
- Typically features competitive interest rates, often lower than those offered with conventional loans.
- Can be used to purchase single-family homes, condos in VA-approved developments, or even multi-unit properties.
2. Interest Rate Reduction Refinance Loan (IRRRL)
Commonly referred to as a VA Streamline Refinance, enables veterans to refinance an existing VA loan. This option helps borrowers secure a lower interest rate or switch to a more stable payment structure, simplifying the refinancing process with minimal documentation.
- Streamlines the refinancing process with no need for an appraisal or credit check in most cases.
- Reduces monthly payments by lowering the interest rate or switching from an adjustable to a fixed-rate mortgage.
- Minimal closing costs, which can often be rolled into the loan to reduce upfront expenses.
3. Cash-Out Refinance Loan
A cash-out VA refinance loan allows veterans to refinance an existing VA or conventional mortgage and access cash based on their home equity. This loan is especially helpful for covering major expenses such as home improvements, debt consolidation, or education costs.
- Allows homeowners to access up to 100% of their home’s equity, depending on the lender’s policies.
- Can be used to replace an existing VA loan or conventional mortgage, even for non-VA loan holders.
- Offers flexible use of cash, from covering medical expenses to funding major renovations or emergencies.
4. Native American Direct Loan (NADL)
Native American Direct Loans are available to Native American veterans or veterans married to a Native American. This loan can be used to buy, build, or improve a home on federal trust land and is tailored to meet the unique needs of Native American communities.
- Features no down payment requirement and competitive interest rates tailored to Native American veterans.
- Specifically supports homeownership on federal trust land, including purchases, renovations, or new construction.
- Offers reduced closing costs compared to other loan options, enhancing affordability.
5. Rehabilitation and Renovation Loan
VA Renovation loans offer financing to repair or enhance an existing home. Whether it’s modernizing outdated spaces or addressing necessary repairs, this loan helps homeowners improve their property’s value and functionality.
- Enables financing for necessary repairs, such as structural fixes, plumbing, or electrical upgrades.
- Supports modernization efforts, like kitchen remodels or energy-efficient appliance installations.
- Allows homeowners to roll renovation costs into the loan, simplifying financing for property improvement.
6. Energy Efficient Mortgage (EEM)
A VA Energy Efficient Mortgage is a VA-backed option that finances energy-efficient upgrades for homes. Improvements like installing solar panels, adding insulation, or upgrading HVAC systems can help veterans reduce utility costs and lower their environmental footprint.
- Covers energy-efficient upgrades like solar panels, efficient HVAC systems, or improved insulation to reduce utility bills.
- Can be combined with other VA loans, making it easier to integrate eco-friendly improvements into new or existing homes.
- Helps veterans contribute to environmental sustainability while saving on long-term energy costs.
What Are the VA Appraisal and Minimum Property Requirements?
VA Minimum Property Requirements (MPRs) for properties eligible for VA financing:
| Requirement | Description |
|---|---|
| Space | Must provide sufficient space for living, sleeping, cooking, and dining. |
| Access | Year-round access required via a public or private street. |
| Utilities | Must have functional electricity, gas, and HVAC systems. |
| Structure | Must be free from structural issues, including mold, mildew, and pest damage. |
| Water Supply | Safe and adequate water supply for drinking and other uses. |
| Heating | Heating system must maintain a minimum temperature of 50°F. |
| Electrical | Must have electricity for lighting and appliances, with no exposed wiring. |
| Mechanical Systems | All mechanical systems must be safe, functional, and usable. |
| Roofing | Roof must be in good condition with no leaks or damage. |
| Drainage | Property must have proper drainage and be free from water-related damage. |
| Lead-Based Paint | Must be free of lead-based paint hazards. |
| Attic & Crawlspace | Must have accessible attic and crawlspace areas. |
| Natural Ventilation | Requires natural ventilation in structural spaces like attics and crawl spaces. |
The VA appraiser will assess any repairs needed to meet MPRs and include their impact on the property’s market value. Appraisal costs, which range from $400 to $1,200, are included in closing costs.
VA Loan Limits and Entitlement
Current VA Loan Limits
As of this year, VA loan limits generally align with conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you have your full entitlement, there may be no loan limit at all. However, if you’ve used a portion of your entitlement already and have not restored it, typical limits might apply.
The exact VA loan limit depends on the county and whether a down payment is made. If your VA loan falls within these limits, you may not need a down payment. However, for larger loan amounts, a down payment might be required.
The VA itself doesn’t impose a minimum credit score, but some lenders may set their own standards. The longest term for a VA home loan is 30 years and 32 days, though the loan term cannot exceed the property’s remaining economic life.
- Standard Limit (Conforming Counties): $806,500 for many U.S. counties.
- High-Cost Areas: Up to around $1,209,750 (varies by county).
VA Entitlement
- Basic Entitlement: Usually $36,000, covering loans up to $144,000.
- Bonus Entitlement: For higher loan amounts, often up to 25% of the county limit.
You can restore entitlement by selling your previous home or refinancing out of a VA loan, ensuring you keep the full lifetime benefit.
How to Restore My VA Loan Entitlement?
To restore your VA loan entitlement, you have several options:
- Sell the Home and Pay Off the Loan
The easiest way to fully restore your entitlement is by selling the property and paying off your VA loan balance. - Pay Off the Loan but Keep the Home
If selling isn’t an option, you can still restore your entitlement by paying off the loan in full, though this can only be done once without selling. - Transfer the Loan to Another Qualified Veteran
If another eligible veteran assumes your loan, they can use your original entitlement amount, freeing up your entitlement for future use. - Refinance the Existing Loan
You can refinance to pay off the original VA loan, which can also help restore your entitlement and adjust the loan terms, like the interest rate. - Request a One-Time Entitlement Restoration
The VA offers a one-time restoration option, which allows you to use your entitlement again without selling your home.
If your loan goes into foreclosure, short sale, or deed in lieu of foreclosure, you’ll need to repay any amount the VA lost in the process to restore your entitlement. For specific details, you can contact a VA loan technician at (877) 827-3702.
Note for Self-Employed VA Borrowers: You may need to show extra documentation to verify income and support your business, as lenders often have additional requirements for verifying income in these cases.
Reusing Your VA Loan Benefit
Veterans can use their VA loan benefit multiple times, making it a versatile tool for financing homes over a lifetime
- Veterans can use their VA loan benefit multiple times over a lifetime.
- Full entitlement can be restored after paying off a previous VA loan or selling the property.
- A one-time restoration option allows veterans to keep an existing VA-financed home while purchasing another.
- This flexibility makes it easier for veterans to relocate, upgrade, or invest in additional properties.
- Reusing the VA loan benefit enables veterans to continue enjoying favorable loan terms for future home purchases.
VA Home Loan Payment Assistance Options
The U.S. Department of Veterans Affairs (VA) provides support for veterans and service members who face difficulties making their VA home loan payments. If you’re struggling to keep up with mortgage payments, the VA can connect you with financial counselors, help you explore forbearance options, and work with your lender to find solutions that fit your situation.
Key Options:
- VA Loan Technicians: The VA assigns loan technicians to work directly with veterans and their mortgage servicers, offering advice and assisting with alternative solutions.
- Repayment and Forbearance Plans: These options may allow you to temporarily pause payments or spread missed payments over time.
- Loan Modification: If you’re unable to meet current mortgage terms, the VA may help negotiate a modified loan structure with your lender to make payments more manageable.
- Avoiding Foreclosure: The VA aims to help veterans avoid foreclosure by providing tailored options and ensuring clear communication between veterans and their loan servicers.
For more detailed information, visit VA’s official site or contact a VA loan technician at 877-827-3702.
How to Apply for a VA Loan (Step by Step)
Obtain Your Certificate of Eligibility (COE)
- Apply online through the VA’s eBenefits portal or ask your lender to do it electronically.
- Keep your DD-214 (for veterans) or current service statement (for active duty) handy.
Get Pre-Approved
- Shop around for reputable lenders specializing in VA loans.
- Provide documentation like pay stubs, tax returns, and bank statements to verify your income and credit.
Find a VA-Approved Home
- Work with a real estate agent experienced in VA transactions.
- Ensure the property meets VA MPRs.
VA Appraisal
- The lender arranges a VA-certified appraiser to verify the home’s market value and condition.
- Turnaround can vary, but usually takes 10–14 days.
Complete the Loan Application
- Submit your COE, purchase contract, and financial documents.
- Verify all information is accurate to avoid delays.
Close on Your New Home
- Review and sign final paperwork.
- Pay the VA funding fee (if applicable) or roll it into the loan.
- Receive the keys to your new home!
Potential Drawbacks of a VA Loan
- Funding Fee: Although the funding fee can be financed into the loan, some veterans may pay a funding fee of 1.4% to over 3% of the loan amount. Veterans with service-connected disabilities or surviving spouses may be exempt.
- Primary Residence Only: You cannot use a VA loan for vacation homes or investment properties.
- Appraisal Requirements: VA appraisals can be stricter, and any needed repairs must be addressed before closing.
VA Loan Assistance Programs
If you’re struggling to make your payments, the VA can assist:
- VA Loan Technicians: Specialists at 877-827-3702 can guide you through loan modifications or repayment plans.
- Repayment/Forbearance Plans: Temporarily reduce or pause your monthly payments.
- Loan Modification: Permanently change the terms of your loan to lower monthly payments.
The key is acting early. If you anticipate difficulty, contact your loan servicer and the VA right away.
The Bottom Line
VA loans remain a cornerstone of financial opportunity for veterans and service members. Whether you’re looking to buy a first home or refinance an existing mortgage, the advantages are unparalleled: zero down payment, no PMI, flexible credit requirements, and accessible assistance programs. You’ve earned these benefits through your service—why not explore them fully?
If you’re ready to take the next step, contact a VA-approved lender, secure your Certificate of Eligibility, and get started on your path to homeownership. It’s an opportunity to build long-term security and stability for you and your family.
Frequently Asked Questions
What is a VA loan?
A VA loan is a government-backed mortgage designed to help veterans, active-duty service members, and eligible surviving spouses buy, build, or refinance a home.
Who is eligible for a VA loan?
VA loans are available to veterans, active-duty service members, National Guard and Reserve members with sufficient service, and some surviving spouses who meet eligibility requirements.
What are the benefits of a VA loan?
VA loans provide unique benefits, including no down payment, lower interest rates, no private mortgage insurance (PMI), flexible credit requirements, and reduced closing costs.
How do I apply for a VA loan?
To apply, obtain a Certificate of Eligibility (COE), gather financial documents, and work with a VA-approved lender to complete the application.
What is the VA funding fee?
The VA funding fee is a one-time cost that supports the VA loan program, with the amount depending on loan type, down payment, and previous VA loan use.
Can I use a VA loan more than once?
Yes, VA loans can be reused as long as eligibility criteria are met and entitlement remains. This allows veterans to purchase or refinance multiple properties over time.
What is the difference between a VA loan and a conventional loan?
VA loans generally don’t require a down payment or PMI, while conventional loans often do. VA loans also tend to offer lower interest rates and more flexible terms.
How long does it take to close a VA loan?
Typically, VA loan closings take 30 to 45 days, similar to conventional loan timelines, depending on lender efficiency and borrower preparedness.
Can a VA loan be used to refinance?
Yes, veterans can refinance through VA options like the Interest Rate Reduction Refinance Loan (IRRRL) or a VA cash-out refinance.
What are the VA’s minimum property requirements (MPRs)?
VA loans require that homes meet Minimum Property Requirements, ensuring they are safe, sanitary, and structurally sound, with functional utilities and no major hazards.
What if I’ve had a bankruptcy or foreclosure in the past?
You may still qualify for a VA loan after a waiting period—often two years after a bankruptcy or foreclosure—provided you meet lender requirements.
