What Is A VA Loan?
A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs (VA) for those who have served or are presently serving in the U.S. military. While the VA does not lend money for VA loans, the loan is backed by private lenders (banks, savings and loans, or mortgage companies) to veterans, active military personnel, and military spouses who qualify.
Who Is Eligible For VA Loans?
VA loans are a benefit given to the following:
- Active-duty personnel
- Reserve members
- National Guard members
- Some surviving spouses
You must also have suitable credit, sufficient income, a valid Certificate of Eligibility (COE), and it must be a primary residence.
What Are The Benefits?
1. No down payment required*
2. A negotiable and competitive interest rate.
3. No private mortgage insurance premiums are required.
4. No prepayment penalties.
*Unless required by the lender or the purchase price is more than the VA loan limits
How Can Veterans & Military Personnel Get A VA Loan?
Veterans, active military personnel, and military families can follow these steps to get a VA loan:
1. Find a local lender that participates in the VA home loan program.
2. Get a Certificate of Eligibility from the VA to prove you are eligible for a VA loan. Your lender can request one on your behalf.
3. Apply for your VA loan. Your VA lender will work with you to complete the steps needed to finance your home.
How Big Of A VA Loan Can Veterans & Military Personnel Get?
Generally, eligible veterans or military personnel can get loans up to $484,350 with no money down. However, there are VA Jumbo Loans available as well which requires a small down payment.