The Top 10 Frequently Asked Questions About VA Home Loans

VA home loans are an amazing benefit for eligible veterans, active duty service members, and surviving spouses These government-backed mortgages come with big advantages like no down payment, no monthly mortgage insurance, and competitive interest rates. It’s no wonder over 28 million VA loans have been made since the program started back in 1944!

But even with all the information out there VA home loans can still raise lots of questions for first-time users and experienced buyers alike. As the #1 VA lender in the country Veterans United Home Loans fields thousands of VA loan questions every single day.

To help clear up some of the most common areas of confusion, I’ve put together this list of the top 10 frequently asked questions about VA loans. Consider it your VA loan FAQ go-to guide!

1. Who is eligible for a VA home loan?

Eligibility for a VA loan depends on your length of service and character of discharge. Here are some of the basic requirements:

• 90 days of active duty service during wartime
• 181 days of continuous active duty during peacetime
• 6 years in the National Guard or Reserves
• Discharged under conditions other than dishonorable

Surviving spouses of deceased veterans may also have VA home loan eligibility. Lenders like Veterans United can help eligible borrowers get a Certificate of Eligibility from the VA to formally confirm eligibility.

2. How much can I borrow with a VA loan?

Qualified VA borrowers can typically borrow up to the conforming loan limit for their county without making a down payment. This limit changes annually but is usually around $625,000.

Veterans who have used their benefit before may need to make a down payment if their remaining entitlement won’t cover the full loan amount. Your lender will look at your Certificate of Eligibility to determine how much entitlement you have left.

3. Do I need a down payment for a VA loan?

One of the biggest VA loan benefits is the ability to buy with zero down payment. VA loans are among the only mortgages that still offer a true 100% financing option.

Qualified borrowers can get a VA loan without any down payment or monthly mortgage insurance. Veterans with full entitlement can buy a home for $1 million and not bring a dime to closing!

4. What credit score is needed for a VA loan?

VA guidelines don’t establish a minimum credit score requirement, but most lenders will look for a FICO score of at least 620. The VA does look at your full credit profile, not just your scores.

They want to see a willingness and ability to pay bills on time. Recent late payments or collections can make approval more challenging. VA loans offer more flexible credit guidelines than conventional mortgages.

5. How do I get a VA loan?

Start by getting pre-approved with a reputable VA lender. They’ll help you understand the loan process and your buying power. Shop for homes within your budget and make an offer contingent on VA financing and appraisal.

Once your offer is accepted, the lender handles paperwork and guides you to closing. Look for a lender like Veterans United that has VA loan experts and a military focus.

6. What fees and costs come with a VA loan?

VA loans cap lender fees and closing costs to help save borrowers money. Sellers can also pay 100% of loan costs as part of closing concessions.

All VA loans require a funding fee paid to the VA to help support the program. For first time users, this fee is 2.3% of the loan amount. It rises for subsequent use of the benefit. Many borrowers can have this fee rolled into the loan.

7. How long does it take to close a VA loan?

A typical VA purchase loan takes between 30 and 45 days to close. Refinances are often quicker, sometimes closing in as little as 15 or 20 days. Exact timelines vary by lender workload, appraisal turnaround, title work and more.

Let your loan officer know if you’re up against contract deadlines or need to close quickly for any reason. They can focus on expediting your loan when necessary.

8. Can I use a VA loan to refinance?

Yes! Veterans with current VA loans can refinance using the VA Interest Rate Reduction Refinance Loan, or IRRRL for short. These VA Streamline Refis allow eligible borrowers to lower their rate and payment.

Veterans with non-VA loans can refinance to a VA loan using the VA Cash-Out Refinance option. Some rules and limits apply, but this opens VA refinancing up to more Veteran homeowners.

9. Can I use a VA loan more than once?

This is a lifetime benefit, so borrowers can use it to buy and refinance multiple times. Veterans typically regain the full entitlement when they sell the home and pay off the VA mortgage.

In some cases, you can rent out the home, refinance to a non-VA loan and buy again with remaining entitlement before selling the first house. Your lender will check eligibility.

10. Why choose a VA loan?

VA loans offer big advantages that really empower Veterans, military families and survivors to maximize their home financing. You get fantastic benefits like no down payment, no monthly MI, low rates and discounted fees.

VA loans are also safer and outperform conventional loans, according to the Mortgage Bankers Association. And your interest along with VA funding fees help other Veterans use their benefits. It’s a win-win!

Now you’ve got the top 10 questions about VA loans covered in one place! This FAQ guide draws from Veterans United Home Loans’ 85+ years of combined VA loan expertise. Our VA mortgage consultants have helped over 1 million military buyers, and we’re the #1 VA lender in America.