VA Home Loans


  A VA home loan is a mortgage program specifically designed for eligible veterans, active-duty service members, and surviving spouses. It is guaranteed by the Department of Veterans Affairs (VA), providing favorable terms such as low or no down payment and competitive interest rates.

Guaranteed and administered by the Department of Veterans Affairs, VA loans are exclusively offered as a benefit to qualified individuals who are serving or have served in the military. One of the VA loan’s best advantages is that it doesn’t require a down payment. If you’re a qualified veteran who wants to purchase a home with little to no down payment, a VA loan may be the best fit for you. If you have funds you wish to use for a down payment, we recommend comparing the VA loan with conventional loans to determine which is best for you.

Check out our VA Mortgage Calculator to see what your rate and payments would be. 

Eligibility typically extends to:

  • Veterans who have served on active duty for at least 90 days during wartime or 181 days during peacetime.
  • Active-duty service members.
  • Members of the National Guard or Reserves who have served for at least six years.
  • Certain surviving spouses of veterans who died in service or as a result of a service-related disability.

Qualification for a VA loan typically requires meeting service eligibility requirements, obtaining a valid COE, meeting lender credit and income standards, and fulfilling any additional criteria set by the lender.

You must request a Certificate of Eligibility (COE) from the VA to officially determine if you are a qualified veteran. The COE shows the VA has determined you are eligible for a VA home loan and indicates the amount of available guaranty or entitlement. To obtain a COE, fill out the 'Request for a Certificate of Eligibility for VA Home Loan Benefits (VA Form 26-1880)' form, then submit it to the VA. Additional information about this form and other VA loan eligibility requirements are available in our VA Loan Guide, as well as on the VA website at https://benefits.va.gov/homeloans/.

Apply for a VA home loan by choosing an approved lender, completing the loan application, providing necessary documentation (such as income and credit history), and working with the lender through the approval process.

To apply, you need to:

  • Obtain a Certificate of Eligibility (COE) from the VA.
  • Find a VA-approved lender.
  • Complete a loan application with the lender.
  • Provide necessary documentation, such as proof of income, credit history, and property details.

The approval process can vary but generally takes around 30 to 45 days from the time you submit your application to the time you close on the loan. At Armed Forces Bank/Academy Bank, we can close a VA loan in as few as 10 days. The process may be quicker or slower depending on factors like lender efficiency, complexity of your application, and the current market conditions.

To get pre-approved, submit a VA loan application to an approved lender. The lender will review your financial information and issue a pre-approval letter, indicating the amount you may qualify for.

The property must meet certain standards set by the VA to ensure it is safe, sanitary, and structurally sound. This includes having adequate living space, functional utilities, and being free from significant health or safety hazards. This is consistent with mortgage programs where the lender requires that the property is in good condition and is worth the amount of the loan.

VA mortgage rates vary and can be obtained directly from approved VA lenders. Rates are influenced by market conditions, individual credit profiles, and other factors.

Check out our VA Mortgage Calculator to calculate your rates and see what your payments would be. 

VA home loans typically do not require private mortgage insurance (PMI). The VA guarantee eliminates the need for PMI, contributing to cost savings for borrowers. A VA Funding Fee may apply.

What is the VA Funding Fee? The VA funding fee is a one-time fee paid to the Department of Veterans Affairs. While most Veterans pay 2.15%, this fee ranges from 0.5% to 3.3%, depending on the loan type, if you've used a VA loan before or if you have a down payment greater than 5%.  Some borrowers may be exempt from this fee based on disability status or other factors.

Key benefits include:

- No down payment required (in most cases).

- No private mortgage insurance (PMI) requirement.

- Competitive interest rates.

- Limited closing costs.

- Relaxed credit requirements.

There is no strict limit on how many times a qualified individual can use a VA loan. However, certain entitlement limitations may apply based on the individual's VA loan history.

Lenders become approved to offer VA loans by meeting VA requirements, demonstrating financial stability, and obtaining VA approval through the Lender Appraisal Processing Program (LAPP) or the Automatic Lender Appraisal Program (ALAP).

Yes, the VA offers several refinancing options, including the Interest Rate Reduction Refinance Loan (IRRRL) and the VA Cash-Out Refinance. The IRRRL helps reduce the interest rate on an existing VA loan, while the Cash-Out Refinance allows you to tap into your home’s equity. The Veteran must have an existing mortgage on their home to conduct a refinance.

Check out our VA Mortgage Calculator to see what your new rate and payments would be after a refinance. 

  • Eligibility: Only qualified veterans are eligible for VA loans.
  • Loan Amounts: The maximum guarantee for a VA loan in all areas is $548,520 (as of January 2021). There may be exceptions for homes in 'high cost' areas as determined by the government.
  • Insurance and Requirements: VA loans are administered and insured by the federal government. They generally have lower qualification requirements and require lower down payments than conventional loans because the government insures a portion of the total dollar amount of these mortgage loans. However, some conventional loans also allow for low down payments. Before determining which is best for your situation, comparing all the loan programs you're eligible for is always a good idea. Contact your loan advisor if you have questions or need help determining which program is correct.
With purchase and rate-term refinances the veteran can borrow 100% of the value of the home or purchase price plus the VA funding fee. With cash-out refinances, the loan amounts will be limited to 90% of the home's value plus the VA funding fee.

A COE is a document that verifies your eligibility for a VA mortgage. Typically, the Lender orders this directly on the VA’s portal for the Veteran.  In most cases, this can be obtained with basic personal information when requesting in the VA portal.  If the lender is not able to obtain the COE, the lender will need to obtain the documents providing proof of military service to upload to the portal.  However, the Veteran can apply for a COE through the VA’s Benefits website, or by mail.

VA loans can be used to purchase a primary residence, including single-family homes, condos (in VA-approved projects), and multi-family homes with up to four units. The property must be your primary residence.

No, VA mortgages are intended for primary residences only. However, you can use a VA loan to buy a multi-family home and rent out the additional units, provided you live in one of the units as your primary residence.

If you default on a VA mortgage, the VA may step in to help the lender recover their losses, which is part of what helps make VA loans accessible. The VA may also work with you to avoid foreclosure by offering assistance programs or loan modifications.

VA loans are assumable, meaning that someone else can take over the loan if they meet the lender’s criteria. However, if the new borrower isn’t eligible for VA benefits, you might need to substitute your entitlement, which could affect your ability to use VA benefits in the future.