Veteran Affairs (VA) Loan
Highlights of the VA Loan
(1) No down payment is required. (2) VA loans don’t require PMI, which means lower monthly payments. (3) Typically offer lower interest rates compared to other loan types
Eligibility
Here are some of the eligibility requirements for the VA Loan program. Select ‘Get Started’ to check if you’ll be a good fit.
You must be:
- An active-duty service member with at least 90 consecutive days of service.
- A veteran who meets the minimum service requirement (usually 90 days during wartime or 181 days during peacetime).
- A National Guard or Reserve member with at least 6 years of service.
Spouses of veterans who died in service or due to a service-related disability may also qualify.
You’ll need a valid Certificate of Eligibility (COE) to prove your eligibility, which can be obtained through the VA or your lender.
While the VA doesn’t set a minimum credit score, most lenders prefer a score of 620 or higher.
You’ll also need to show stable income to cover your mortgage payments.
The property must be your primary residence – no vacation homes or investment properties allowed.
Common Questions
Can I use a VA loan more than once?
Yes! As long as you have remaining entitlement or have paid off a previous VA loan, you can use your VA benefits again.
Can I use a VA loan to buy a fixer-upper?
Yes, but the home must meet minimum property standards set by the VA. A VA renovation loan (VA Rehab Loan) may be an option for fixing up a property.
Are there limits on how much I can borrow?
As of 2020, there are no longer loan limits for VA loans if you have full entitlement. However, lenders may have their own limits based on income and credit.
Can I refinance a VA loan?
Absolutely! You can use a VA Interest Rate Reduction Refinance Loan (IRRRL) to lower your rate or refinance to a conventional loan if needed.
Can I use a VA loan to buy a condo?
Yes, but the condo must be on the VA-approved condo list or be approved during the process.
Other Info
VA Funding Fee – Most borrowers pay a VA funding fee (typically 1.25% to 3.3% of the loan amount), which helps keep the program running. However, this fee can be waived for veterans with service-related disabilities.
Entitlement and Limits – If you’ve used your VA loan benefits before, you may have partial entitlement remaining. This could limit the amount you can borrow without a down payment.
Restoring Entitlement – If you’ve paid off a previous VA loan or sold the property, you can apply for a restoration of entitlement to use your VA benefits again.
Occupancy Requirements – You must move into the home within 60 days of closing and certify that it will be your primary residence.
Assumable Loan Option – VA loans are assumable, meaning another qualified borrower can take over your loan, which can be a great selling point if interest rates go up.
Foreclosure Protection – The VA provides assistance programs to help borrowers avoid foreclosure if they run into financial trouble.
Multi-Unit Properties – You can use a VA loan to buy a property with up to 4 units, as long as you occupy one of the units.