VA Loan
Buy a home with no down payment if you or your spouse serve or served in the military.
What To Know About VA Loans
How Do I Qualify For A VA Loan?
A VA loan might be a great mortgage option if you:
- Are a qualified active service member, veteran or the surviving spouse of one
- Meet minimum service requirements
- Can provide a Certificate of Eligibility
- Have a credit score of at least 580
- Have a debt-to-income ratio no higher than 41%
- Plan to make the home your primary residence
How Do VA Loans Work?
- VA loans are made by private lenders and guaranteed by the U.S. Department of Veterans Affairs.
- This reduces the risk for lenders so they can loosen eligibility requirements.
- No down payment is required if the sales price doesn't exceed the appraised value.
- Instead of buying mortgage insurance, you'll pay a one-time funding fee.
- You can often access lower interest rates and closing costs compared to other loans.
- Low-cost, streamlined refinance options are available if you have trouble paying your mortgage.
What Are VA Loan Benefits?
- You may not need a down payment.
- You can qualify with a lower credit score than most other loans.
- The closing costs are cheaper.
- You don't have to pay for mortgage insurance.
- You can use your VA loan benefit more than once.
- There is no prepayment penalty.
- You may be able to refinance up to 100% of your home's value to get cash out.
- If you don't take cash out, you can refinance up to 120% of your home's value.
Military Requirements For VA Loans
- Active-duty military personnel need to have served 90 continuous days.
- Minimum service requirements for veterans depend on when you served.
- Request a Certificate of Eligibility.
VA Property Requirements
- The home must be your primary residence.
- You must move into the home within 60 days of closing.
Frequently Asked Questions
Here are answers to common questions about VA loans.
What is a Certificate of Eligibility?
A Certificate of Eligibility is a document that shows you qualify for VA benefits, including a VA loan.
Is there a limit to how much you can borrow with a VA loan?
The VA doesn’t limit loan amounts, but some lenders will require your VA loan to meet conventional loan limits.
What is the funding fee?
The VA funding fee is paid at closing and ranges from 1.25% to 3.3% of the total loan amount.
Ready To Buy A Home?
Connect with a lender that will work with your unique financial situation, or use our calculators to estimate how much home you could afford.
