Veterans and service members are eligible for a VA loan.
To get a VA home loan, you’ll need a Certificate of Eligibility (COE) to show your lender that you qualify for this benefit based on your service history and duty status. Go Here to submit your online application with the VA to get a copy of your COE.
What are the benefits of a VA Loan?
- Eligible home buyers are not required to have a down payment in most cases.
- There is no monthly mortgage insurance premium or PMI to pay.
- Limitation on buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
- Lower average interest rates than other loan types.
- No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.
- Two refinance options. The VA loan program allows homeowners with existing VA loans the option to lower their monthly payment with a new interest rate. Eligible homeowners who financed their property with a loan other than a VA loan can refinance into the VA loan program.
- Second tier entitlement. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.
Requirements of the Borrower
- Must be a eligible veteran who has available entitlement.
- The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan. Talk with a lender about your particular occupancy situation.
- As with other types of mortgages, the veteran must be a satisfactory credit risk.
- The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.