VA Mortgage Q&A
What is a VA loan?
A VA loan is a government-backed mortgage designed to help eligible service members, veterans, and military spouses buy or refinance a home with no down payment, no PMI, and flexible lending terms.
Who is eligible for a VA loan?
✔ Active-duty service members
✔ Veterans who meet service requirements
✔ National Guard & Reserve members (with at least 6 years of service or 90 days active duty)
✔ Surviving spouses of service members who died in the line of duty or due to a service-related injury
A Certificate of Eligibility (COE) is required to prove qualification.
What are the benefits of a VA loan?
✔ $0 Down Payment – No need for a large upfront investment
✔ No Private Mortgage Insurance (PMI) – Lower monthly payments
✔ Competitive Interest Rates – VA-backed loans often have lower rates
✔ Lenient Credit & DTI Requirements – More flexible than conventional loans
✔ No Loan Limits (with full entitlement) – Borrow without standard loan caps
VA Loan Requirements
What credit score is needed for a VA loan?
The VA does not set a minimum credit score, but most lenders require 580-620 or higher. We allow lower credit scores even with manual underwriting.
Can I get a VA loan with a high debt-to-income ratio?
Yes! VA loans allow higher DTI ratios than conventional loans, often exceeding 55-60%, depending on residual income and compensating factors.
What is residual income, and why does it matter?
Residual income is the money left over after paying monthly debts and expenses. The VA requires lenders to calculate this to ensure borrowers have enough funds for daily living expenses. Higher residual income can help compensate for lower credit scores or higher DTIs.
VA Loan Process
How do I apply for a VA loan?
- Obtain your Certificate of Eligibility (COE) (we can assist).
- Get pre-approved with a VA lender (like us!).
- Find a home & sign a purchase agreement.
- Complete VA appraisal & underwriting.
- Close on your home & get the keys!
How long does it take to close on a VA loan?
Typically, 30-45 days, but we often close faster depending on appraisal and underwriting.
What is the VA appraisal, and how does it work?
A VA-approved appraiser assesses the home’s value and ensures it meets Minimum Property Requirements (MPRs). The appraisal is not a home inspection, so a separate home inspection is highly recommended.
VA Loan Limits & Fees
Is there a loan limit for VA loans?
As of 2020, VA loans no longer have loan limits for eligible borrowers with full entitlement. If you have an existing VA loan, your remaining entitlement may affect your borrowing amount.
What is the VA funding fee, and can it be waived?
The VA funding fee helps sustain the VA loan program and varies based on down payment & loan usage:
✔ First-time use: 2.15% of loan amount (0% down)
✔ Subsequent use: 3.3% of loan amount (0% down)
✔ 5-10% down payment lowers the fee
✔ Waived for disabled veterans, Purple Heart recipients, and surviving spouses
Are there closing costs on a VA loan?
Yes, VA loans have closing costs, but sellers are allowed to pay any standard and customary closing costs, including:
✔ Appraisal fees
✔ Title insurance
✔ Recording fees
✔ Discount points (as appropriate to the market)
Additionally, sellers may contribute up to 4% of the purchase price toward additional expenses (seller concessions).
How much can a seller contribute toward a buyer’s costs on a VA loan?
There are two separate ways a seller can contribute to a VA buyer’s costs:
-
Standard Closing Costs – Sellers can pay any reasonable and customary closing costs, such as:
- Appraisal fees
- Title insurance
- Recording fees
- Discount points (as appropriate to the market)
There is no limit on how much the seller can contribute toward these standard closing costs.
-
Seller Concessions (Limited to 4%) – Sellers can also contribute up to 4% of the purchase price toward non-standard expenses, which include:
- The buyer’s VA funding fee
- Prepaid property taxes & homeowner’s insurance
- Paying off credit balances or judgments
- Gifts, such as appliances or TVs
- Funds for temporary or permanent interest rate buydowns
VA Loan Usage & Eligibility
Can I have two VA loans at the same time?
Yes! You may qualify for a second VA loan if you have remaining entitlement. This is common when relocating and keeping your first VA-financed home as a rental.
Can I use a VA loan for a second home or investment property?
No, VA loans are only for primary residences. However, you can buy a multi-unit home (up to 4 units) as long as you occupy one of the units.
How many times can I use my VA loan benefits?
VA loans can be used multiple times as long as previous VA loans are paid off or entitlement is restored. Some borrowers have used VA loans 5+ times.
VA Loan Myths & Misconceptions
Do VA loans take longer to close?
Not necessarily. A well-prepared VA loan can close just as fast as conventional loans, especially with a VA-experienced lender like us.
Will a seller avoid my offer if I use a VA loan?
Some sellers misunderstand VA loans, believing they are complicated. We help educate sellers & agents to make your VA offer competitive.
Is there a minimum credit score requirement for VA loans?
No, VA does not require a minimum credit score. However, lenders set their own credit guidelines. We offer manual underwriting for lower scores.
🎖️ VA Loan Perks You Can’t Ignore
🏡 $0 Down Payment – No need for a big upfront investment
🚫 No PMI – Save hundreds per month compared to FHA loans
📉 Lower Interest Rates – VA loans typically have better terms
🛠️ Flexible Credit & DTI Requirements – More approvals, even with past credit challenges
💪 Use Your VA Benefits Again & Again – Not a one-time deal!
💡 Pro Tip: Many lenders add credit score overlays that aren’t required by the VA. Work with a lender who truly understands VA loans!
Find Out How Much You Qualify For → Get Pre-Approved
🇺🇸 Maximize Your VA Loan Benefits
💰 Sellers Can Cover Closing Costs – Reduce your out-of-pocket expenses
🏠 No Loan Limits with Full Entitlement – Buy the home you want
🔄 Easy Refinance Options – Lower your rate or access cash
🛡️ VA Funding Fee Can Be Waived – If you’re a disabled veteran
💳 Pay Off Debts with a VA Loan – Seller concessions can cover credit balances
💡 Pro Tip: VA loans don’t take longer to close—the right lender makes all the difference. Don’t let a misinformed seller steer you away!
📞 Ready to Own a Home? → Check Your Eligibility
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