close up photography of american flag
Photo by Brett Sayles on
  • Reserved for active-duty military members, veterans, and certain surviving spouses.
  • No requirement for private mortgage insurance (PMI).

Loan types:

  • Purchase Loans: For buying a home.
  • Interest Rate Reduction Refinance Loan (IRRRL): For refinancing an existing VA loan to lower the interest rate.
  • Cash-Out Refinance Loans: For taking out cash from home equity.

Credit Requirements

  • More lenient credit score requirements compared to other loan types.
  • Lenders typically look for a credit score of at least 580.

Property Requirements

  • Must pass VA appraisal and meet minimum property requirements (MPRs).
  • Property must be for primary residence, not investment or vacation property.

Financial Benefits

  • Competitive interest rates often lower than conventional loans.
  • No down payment required in most cases.
  • No prepayment penalties.

Loan Limits and Funding Fees

  • Loan limits can vary by county but often allow for large loan amounts.
  • Funding fees can range between 1.4% to 3.6% but may be waived for certain individuals (e.g., those with service-related disabilities).

Application Process

Obtain COE through the VA or online through eBenefits.

Pre-qualification by lending institution.

Submit loan application and documentation (W2s, pay stubs, etc.)

Home appraisal by a VA-approved appraiser.

Loan underwriting and approval.

Closing Costs

  • Some costs and fees may be rolled into the loan or paid by the seller.
  • Limits on allowable closing costs.

Additional Features

  • Optional VA Streamline refinancing for quicker approval and less documentation.
  • Surviving spouses may also be eligible under certain conditions.

Always consult with your loan officer to make sure you’re making the best decision for your specific circumstances.