The VA home loan program allows eligible veterans, active-duty service members, and surviving spouses to purchase, build, or refinance a home with favorable terms including no down payment, no private mortgage insurance (PMI), and competitive interest rates. The loan is guaranteed by the Department of Veterans Affairs but issued by private lenders.
8 steps across 1 sections
1. Steps Process
- Verify your eligibility — You need at least 90 consecutive days of active service during wartime, 181 days during peacetime, 6 years in the National Guard or Reserves, or be the surviving spouse of...
- Obtain your Certificate of Eligibility (COE) — Request through your lender (fastest, using VA's Web LGY system), online at va.gov, or by mailing VA Form 26-1880; you will need your DD-214 or statem...
- Choose a VA-approved lender — Not all lenders offer VA loans; compare rates, fees, and experience with VA loans across at least 3 lenders
- Get pre-approved — The lender reviews your credit, income, debt-to-income ratio, and residual income; VA loans have no official minimum credit score, but most lenders require 620+
- Find a home and make an offer — The home must be your primary residence; VA loans cannot be used for investment properties or vacation homes
- Order a VA appraisal — Required on all VA purchase loans; the VA assigns an independent appraiser to ensure the home meets Minimum Property Requirements (MPRs) and is worth the purchase price
- Complete underwriting — The lender verifies all documentation, employment, assets, and the appraisal; address any conditions or requests promptly
- Close on the home — Sign closing documents, pay the VA funding fee (can be financed into the loan), and receive your keys; closing typically takes 30-45 days from contract
Common Mistakes
- Not shopping multiple lenders
- Assuming VA loans are slower
- Ignoring the VA funding fee
- Skipping the home inspection
- Using VA loan for a fixer-upper without understanding MPRs
Pro Tips
- No down payment required
- VA loans are reusable
- Refinancing options
- Negotiate seller concessions
- Exemption from the funding fee