Why should you choose a V.A. loan? Because, the VA Home Loan is often the best home loan product for US Veterans. It’s a loan set aside as a way the government honors those who have served. It’s a benefit that, if you’re eligible for it, you have your whole life.
What is a VA Loan?
Provided by private lenders, mortgage companies, and banks the VA guarantees a potion of the loan. This loan also comes with better terms than regular loans.
This type of loan doesn’t require a down payment (though the lender you go through might). The rates are competitively low interest with limited closing costs.
One of the excellent features of the VA Home Loan is there is no PMI insurance, which can help you achieve a lower monthly mortgage payment than if you had to pay it.
What are some benefits of a the VA Home loan?
There are many benefits to the V.A. loan. Here are some, but not all that you can expect.
• No down payment as long as the sales price is at or below the home’s appraised value (the
value set for the home after an expert review of the property) See VA Appraisal section below
• No loan limit with full entitlement if you can afford the loan, VA will back loans in all areas of
the country, regardless of home price.
• Competitive terms and interest rates from private banks, mortgage lenders, or credit unions
• No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)
o PMI is a type of insurance that protects the lender if the borrower ends up not being
able to pay the mortgage. It’s usually required on conventional loans if the down
payment is less than 20% of the total mortgage amount.
o MIP is what the Federal Housing Administration (FHA) requires borrowers to pay and to self insure an FHA loan against future loss.
o Not having to pay PMI could save a borrower on their monthly mortgage payment
• Fewer closing costs, which may be paid by the seller, lender, or any other party
• No penalty fee for paying off the loan earl
What are some eligibility requirements?
Based on your service to the country, you may be eligible for the VA Home Loan benefit. VA is the only
organization that can determine eligibility for a VA direct or VA-backed home loan benefit based on your
length of service or service commitment, duty status, and character of service.
Details for determining eligibility (including calculating credible years of service) can be found in Chapter 7 of the M26-1 Guaranteed Loan Processing Manual.
You can get this manual in a few places. You can download it from the
What are the VA’s borrowing requirements
VA does not determine how much you can borrow. However, unlike other loans, VA requires you to
have enough income remaining after paying your mortgage and other financial obligations. This helps
ensure you can afford homeownership and lessen the risk of defaulting on your loan.
Also, you must:
1) live in the home being bought with the loan, and
2) meet ONE of the following:
Active-Duty Servicemember: Currently on active duty and have served at least 90 continuous days.
Note: Active duty includes Active Guard Reserve (AGR) members activated under Title 10 U.S.C.
Veteran: Veterans separated from active duty between August 2, 1990 and the present (Gulf War era)
must have served:
• 24 continuous months, or
• A full period (at least 90 days) for which you were called or ordered to active duty, or
• At least 90 days if discharged for a hardship, a reduction in force, or for convenience of the
• Less than 90 days (if discharged for a service-connected disability)
Note: This includes Reserve and National Guard members called to active duty for at least 90 days.
Active duty does not include active duty for training.
What are the first steps?
The VA has a buying guide that anyone interested in a VA Home Loan should read. It can be found here.
Once you have received your COE you can begin your loan process.
You can find more information on how to apply for a VA Home Loan on the veterans association. You can also message us here, check out our Veterans Corner for any questions, or help with your process.