Home Financing for Those Who Served
VA-backed home loans provide eligible Veterans, service members, and qualifying surviving spouses with flexible financing options for purchasing or refinancing a primary residence.
These mortgages are offered by private lenders, while the U.S. Department of Veterans Affairs guarantees a portion of the loan. This guaranty can help eligible borrowers access benefits that may include a no-down-payment option, no required monthly mortgage insurance, competitive lender-determined terms, and limits on certain closing costs.
Mortgage Pros Funding can help you understand the VA loan process, review the documentation you may need, and explore financing options based on your goals and qualifications.
How a VA-Backed Home Loan Works
The VA home loan guaranty reduces a participating lender’s risk if a borrower defaults. The VA generally does not provide the funds for a VA-backed purchase loan; the mortgage is made by a private lender that follows VA requirements and its own underwriting standards.
The guaranty does not eliminate the borrower’s responsibility to repay the mortgage. Borrowers must still qualify for the requested loan amount based on factors such as income, credit history, debts, assets, and the property’s appraised value.
Understanding Your Certificate of Eligibility
A Certificate of Eligibility, commonly called a COE, confirms that a borrower meets the applicable service-based requirements for the VA home loan benefit. The COE also provides information about the borrower’s available entitlement.
Eligible borrowers may request a COE directly from the VA, and an approved lender may also be able to obtain it on their behalf. Receiving a COE is an important step, but it is not the same as receiving mortgage approval.
Learn How to Request a VA Certificate of Eligibility
Understanding VA Entitlement and Loan Limits
VA entitlement is the amount of the loan guaranty available to an eligible borrower. Borrowers with full entitlement generally do not have a VA-imposed loan limit, but the lender must still approve the requested loan amount and the property appraisal must support the transaction.
Borrowers with remaining or partial entitlement may have a county conforming loan limit considered when determining how much they can borrow without a down payment. A down payment may be required when the available entitlement does not provide the guaranty needed for the requested loan amount.
Prior use of a VA loan does not automatically prevent a borrower from using the benefit again. Entitlement may be restored or remaining entitlement may be available, depending on the circumstances.
Learn About VA Entitlement and Loan Limits
Eligible Homes and Occupancy
A VA-backed purchase loan must generally be used for a home the eligible borrower intends to occupy as a primary residence.
Depending on the lender and program, eligible property options may include:
- A detached single-family home or townhome
- A condominium in a VA-approved project
- A residential property with up to four units when the borrower will occupy one unit
- An eligible manufactured home or lot
- New construction
- A home purchased with eligible improvements or energy-efficiency features
Available property types and financing options vary by lender. The home must also meet applicable VA appraisal and property requirements.
The VA Appraisal and Property Requirements
The lender generally orders an appraisal from a VA-approved appraiser. The appraisal provides an opinion of the property’s value and evaluates whether the home meets the VA’s minimum property requirements for basic safety, sanitation, and structural soundness.
A VA appraisal is not the same as a home inspection and does not guarantee that the property is free of defects. Buyers should consider obtaining an independent home inspection to better understand the home’s condition before closing.
VA Funding Fee and Closing Costs
Many borrowers pay a one-time VA funding fee that helps support the home loan program. The amount can depend on the type of loan, down payment, prior use of the VA benefit, and other factors.
Certain eligible borrowers may be exempt from the funding fee. When permitted, the fee may be financed as part of the loan, although doing so increases the loan balance and the amount repaid over time.
Borrowers may also have lender charges, appraisal costs, title expenses, prepaid items, and other closing costs. VA rules limit certain charges, and sellers may be permitted to pay eligible costs or concessions within applicable guidelines.
Review VA Funding Fee and Closing Cost Information
What to Expect During the Process
The VA loan process generally includes:
- Reviewing your homeownership or refinancing goals
- Confirming your Certificate of Eligibility and available entitlement
- Discussing available VA-backed financing options
- Completing the mortgage application
- Providing income, employment, asset, debt, and service-related documentation
- Identifying an eligible property for your primary residence
- Completing the VA appraisal and any additional property review
- Undergoing lender underwriting and satisfying approval conditions
- Preparing for final approval and closing
Guidance From Application to Closing
Mortgage Pros Funding will help you understand the VA loan requirements, prepare the necessary documentation, and navigate each stage of the mortgage process.
Our team provides personalized guidance from the initial review of your eligibility and financing goals through underwriting, final approval, and closing.