If you have served in the military, you may have earned one of the most powerful home financing tools available: the VA home loan. Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help veterans, service members and eligible surviving spouses buy and keep homes with fewer upfront barriers. Here is a look at what makes them special and how to get started.
VA loan eligibility generally includes:
Eligibility is confirmed with a Certificate of Eligibility, or COE. Your loan officer can often help you request it.
For many buyers, saving for a down payment is the biggest hurdle. With full entitlement, a VA loan allows you to buy with $0 down. That can help you become a homeowner years sooner than you might otherwise.
Most loans with small down payments require ongoing mortgage insurance. VA loans do not. That can mean a noticeably lower monthly payment compared with other low down payment options.
Because the VA backs part of the loan, lenders take on less risk. That backing helps make VA loans competitive with other options, depending on your situation.
VA guidelines can be more forgiving of past credit challenges than some other loan types. Lenders still review your credit, income and debts, but you may not need a perfect profile to qualify.
The VA limits certain fees that veterans can be charged, and sellers are allowed to contribute toward some of your closing costs. That can reduce the cash you need at the closing table.
Most VA borrowers pay a one-time funding fee, which helps sustain the program for future veterans. The amount depends on factors like your down payment and whether you have used the benefit before. It can typically be rolled into the loan. Some borrowers, such as many veterans receiving VA disability compensation, are exempt from it. Your loan officer can confirm what applies to you.
VA benefits do not stop after you buy. If you already have a VA loan, an Interest Rate Reduction Refinance Loan, often called an IRRRL or VA streamline, may let you refinance to a lower rate or move from an adjustable rate to a fixed rate with less paperwork. A VA cash-out refinance may also let eligible homeowners tap equity. Learn more on our refinance page.
You earned this benefit through your service, and it is worth understanding how it can help you. Visit our VA home loan page for more details, then connect with a FLO Mortgage loan officer to check your eligibility and explore your options.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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