What is a VA Home Loan?
VA loans are backed by the government and provided by private lenders with more favorable terms than other standard products offered. The VA guarantees a portion of the loan if it goes into foreclosure; with protection from more risk, it allows the lender to offer a product with unique benefits. You will still need sufficient credit and income requirements set by your lender to qualify, but guidelines are more flexible. With a mission to serve, VA loans are specifically for veterans, current service members, and surviving spouses.
Regardless of your current military status, every VA loan requires a Certificate of Eligibility to ensure you are receiving the appropriate benefits. You may qualify if you have completed one or more of the following: served 90-consecutive days of active duty, 181-days of active duty during peacetime, 6-years of service in the national guard or reserves, or you are the spouse of a service member who died in the line of duty.1 Depending on your current military status, there are different documentation requirements. Find out your requirements using the information listed below.
Active-duty service member
Statement of Service signed by your commander showing: Full name, Social Security number, DOB, date entered duty, duration of any lost time, and name of command providing the necessary information.
Active and current member of National Guard/Reserves
Never active and current member of National Guard/Reserves
Statement of service signed by your commander showing: total creditable years of service, full name, Social Security number, DOB, date entered duty, duration of any lost time, and name of command providing the necessary information.
Never active and discharged member of National Guard
Never active and discharged member of Reserves
Copy of latest annual retirements points.
Proof of your honorable service.
Surviving spouse of Veteran or service-related disability
Veterans discharge documents (DD214). Request your DD214 form here.
If you are receiving DIC (Dependency and Indemnity Compensation) VA Form 26-1817 must be completed. To print a copy of the VA Form 26-1817 click here.
If you are not receiving DIC we will need a completed application for DIC (VA Form 21P-534EZ). Find out more about the VA Form 21P-534EZ here.
Different Loan Types
VA cash-out refinance
Take cash out to consolidate debt or make home improvements.
Refinance a non-VA loan into a VA-backed loan.
VA Interest Rate Reduction Refinancing Loan (IRRRL) “Streamline” Refinance
Currently have a VA loan looking to take advantage of savings with a new VA loan.
Lower monthly payments with a lower interest rate.
Consists of less documentation (i.e. income or appraisal).
Benefits to VA Loans
When purchasing a home, it can be difficult to access the funds needed for a down payment. The biggest benefit with VA purchase loans is NO down payment is required compared to other loan products like conventional. an an an With VA loans there is no MIP (Mortgage Insurance Premium for— FHA) or PMI (Private Mortgage Insurance – Conventional).3 Also, you may have lower closing costs than conventional or FHA loans due to the limitation set by the Veteran Affairs for VA loans. The VA funding fee may be required depending on exemption eligibility. Talk to a Mortgage Advisor today and see if you qualify!