VA Loans

Most Common VA Loans Questions

• What are VA Loans?

A VA loan is a loan guaranteed by the U.S. Department of Veterans Affairs. Only qualified U.S. veterans, active-duty military personnel and some surviving spouses are eligible for VA loans. A VA loan typically requires no down payment and has less-restrictive guidelines and credit requirements than many other home loans. You can use VA loans to buy, refinance or renovate a home.

 

• What documentation is required to determine VA loan eligibility?

To determine VA loan eligibility, you must have a Certificate of Eligibility (COE). This certificate is issued based on your service history and duty status.

 

• How many times can you use a VA? 

The VA home loan is a lifetime benefit.  As long as you have remaining entitlement, you will have the option to obtain another VA loan.

 

• What is VA Entitlement and how is it used?

VA loan entitlement is the dollar amount the Department of Veterans Affairs will guarantee on each VA home loan and helps determine how much a veteran can borrow before needing a down payment. 

 

• Do VA loans have higher interest rates?

VA loans typically offer lower rates than a conventional loan. This is because VA loans are insured by the U.S. Department of Veterans Affairs. This insurance or guarantee reduces some of the risk associated with mortgage loans.

 

• Does VA have additional fees or costs?

When obtaining an VA loan, you may be required to pay a one-time fee know as a “VA Funding Fee.” This additional fee is based off whether it is your first time, a subsequent time, or if there is a down payment. This fee can be financed or paid at closing. However, you may be considered exempt and will not be required to pay the VA Funding Fee is you are:

• Receiving VA compensation for a service-connected disability, or
• Eligible to receive VA compensation for a service-connected disability, but you are receiving retirement or active-duty pay instead, or
• The surviving spouse of a Veteran who died in service or from a service-connected disability, or who was totally disabled, and you are receiving Dependency and Indemnity Compensation (DIC), or
• A service member with a proposed or memorandum rating, before the loan closing date, saying you are eligible to get compensation because of a pre-discharge claim, or
• A service member on active duty who before or on the loan closing date provides evidence of having received the Purple Heart.

 

• How do you know if VA is the best loan for me?

VA is arguably the best loan for any qualified borrower. However, everyone’s financial situation can be different due to numerous factors. Just because VA might be the best loan, it may not necessarily be the best loan for you. To ensure you choose the loan that is right for you, it is important to speak with a mortgage professional to discuss your specific situation in detail. Contact me to begin this conversation.