What is a VA Loan, and What Do I Need to Apply For One?

A VA loan is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). It is available to active duty military members, veterans, and certain surviving spouses of veterans. The VA loan program was created to help veterans and their families afford to purchase a home, as a way of thanking them for their service to our country.

One of the main benefits of a VA loan is that it allows borrowers to purchase a home with no down payment. This can be a huge advantage for many military families, as it can be difficult to come up with a down payment when you are moving frequently or when you have limited income. In addition, VA loans have lower closing costs and NO private mortgage insurance (PMI) requirement, which can make them more affordable overall.

To be eligible for a VA loan, you must meet certain requirements, including:

• Being a current or former member of the military, or a surviving spouse of a military member who died in the line of duty or due to a service-related injury
• Having a good credit score and debt-to-income ratio
• Being able to show proof of your military service
• Meeting certain income and asset requirements

If you think you might be eligible for a VA loan, the first step is to get a Certificate of Eligibility (COE) from the VA. You can apply for a COE online or through your lender. You will need to provide proof of your military service and other personal information to complete the application.

Once you have your COE, you can start looking for a lender to work with. You can use the VA's lender list to find lenders in your area, ask us for our VA lender partners or you can shop around to compare rates and terms from different lenders. When you find a lender you want to work with, you will need to complete a loan application and provide any additional documentation that is required, such as proof of income, employment, and credit history.

The lender will then review your application and supporting documents to determine if you are eligible for a VA loan and how much you can borrow. If you are approved, the lender will work with you to finalize the loan terms and complete the loan process.

You can use your VA loan multiple times (in some instances multiple times at the same time if you are within the capped limit). You MUST use the VA loan (at the time of borrowing) as your primary home, but you can often buy another home in another area (such as in the even of PCS) if you still have funds available. If not, you can always refinance your home into another loan program to purchase an additional home, or sell your current home and re-use your full benefit. 

Overall, a VA loan can be a great option for military families looking to purchase a home. It offers many benefits, such as no down payment and lower closing costs, and it can help you afford a home that you might not otherwise be able to afford. If you think you might be eligible for a VA loan, it's worth exploring this option as you start the home buying process.