You can apply for a VA home loan at any mortgage company that is VA approved and participates in the VA home loan program. One of the fastest ways to apply is to call 866-437-7385 to be immediately connected with a licensed lender or complete a short form online.
Years ago, VA financing was more complicated than conventional financing. However changes over the years have streamlined the VA home loan process and in many cases, the VA home loan process is now easier than some conventional financing programs.
Please see our section that explains the VA Certificate of Eligibility
There is a funding fee required by the Department of Veteran Affairs, that varies between 0.5-3.3% of the amount of the loan depending on your current Veteran Status and the type of loan. The funding fee is added into the total loan amount, so the borrower is not required to pay this out of pocket. In some cases, the funding fee is waived for veterans disabled in the line of service. This waiver is determined by VA. For more information, see our section about VA funding fees.
Yes, depending on the circumstances. If you have paid off your prior VA home loan and disposed of the property, you can have your entitlement restored for additional use. Call 888-516-0009 to speak with a licensed lender who can review your personal situation and let you know if you can receive another VA loan.
In this case, your entitlement can only be restored if the assumer is also an eligible veteran who is willing to substitute his or her entitlement for that of your original entitlement. Otherwise you cannot have your entitlement restored until the assumer has paid off the VA home loan.
The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA Veterans Benefits Counselor at the nearest VA office will assist a veteran in obtaining necessary proof of military service. Also, see our page on how to obtain your DD-214.
No. The amount of entitlement relates only to the amount VA will guarantee the lender against loss.
If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for “restoration” are met:
Restoration of entitlement is not automatic. You must apply for it by completing and returning VA Form 26-1880 to any VA regional office or center. Application forms for substitution of entitlement may he requested from the VA office that guaranteed the loan.
To find out more, call 866-437-7385 to speak with a licensed lender who can assess your specific situation. Or, contact us via on online form.
No. The veteran must still be found to be qualified for the loan from an income and credit standpoint.
Although there is no maximum VA home loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum to $417,000 because the loan is sold in the secondary market. However, in some cases the lender may allow for a higher loan limit in some geographic areas, depending on current VA loan limits. Read more about VA jumbo loans.
No. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments, you may lose your home through foreclosure, and you and your family would probably lose all the time and money you had invested in it. If the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you.
Yes, but the total number of separate units cannot be more than four if one veteran is buying. If more than one veteran is buying, then one additional family unit may be added to the basic four for each veteran participating; thus, one veteran could buy four units; two veterans, five units; three veterans, six units, etc.
In addition, if the veteran must depend on rental income from the property to qualify for the loan, the veteran must (a) show that he or she has the background or qualifications to be successful as a landlord, and (b) have enough cash reserves to make the loan payments for at least 6 months without help from the rental income.
Yes. A VA home loan may be partially or fully paid at any time without penalty. Partial payments may not be less than one monthly installment or $100, whichever is less. (Consult your lender.)
No. The surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes the obligation of the veteran’s estate. Protection against this may be obtained through mortgage life insurance, which must be purchased from private insurance sources.
Yes. The following refinancing loans are available under the VA guaranteed home loan program:
Source: VA Handbook