Everything veterans, active-duty service members, National Guard members, Reservists, and many surviving spouses should understand before purchasing a home with a VA-backed mortgage.
Talk With KyleQualified borrowers may finance up to the purchase price when lender requirements are met.
Unlike many other loan programs, VA loans generally do not require monthly mortgage insurance.
Rates are determined by lenders and market conditions.
Lenders establish their own credit overlays in addition to VA guidelines.
Your lender can often obtain your COE electronically. If not, supporting military documentation may be required. The COE confirms eligibility but does not guarantee loan approval.
Your lender evaluates income stability, employment history, debts, assets, credit history, residual income, and debt-to-income ratio. Individual lenders may have stricter standards than the VA minimum guidelines.
The VA funding fee is a one-time fee that helps support the VA loan program. The amount depends on factors such as military category, whether it is your first or subsequent use, down payment amount, and loan type. Many borrowers finance the funding fee into the loan rather than paying it in cash.
VA disability compensation can often be counted as qualifying income if lender requirements are met. Your disability rating alone does not determine loan approval. Lenders evaluate total income, debts, assets, and other underwriting factors.
The VA appraisal evaluates both value and whether the property generally meets the VA's Minimum Property Requirements.
No significant safety hazards should exist.
The home should have structural integrity without major defects affecting habitability.
Working water, sewage disposal, and sanitary living conditions are generally required.
A VA appraisal is not a substitute for a home inspection. An appraisal primarily addresses value and basic property requirements for the lender and VA program. A home inspection is a separate evaluation of the home's accessible systems and components.
VA loans are intended for primary residences. Buyers generally certify an intent to occupy the property within the required timeframe, subject to applicable VA rules and documented exceptions.
In many cases, yes. Eligibility restoration and remaining entitlement rules apply.
Qualified borrowers often can purchase with no down payment, although making one is allowed.
A home inspection is strongly recommended because the VA appraisal is not a comprehensive inspection.
Possibly, but the property must satisfy applicable VA property requirements or be repaired before closing unless another approved program is used.
Yes. Seller concessions remain negotiable, subject to current VA rules and the purchase agreement.