The Veterans Administration (VA) offers one of the most flexible loan programs for eligible* Veterans. A VA home loan provides financing with no down payment option, no loan limits for qualified homebuyers with full entitlement, no mortgage insurance requirements, and other potential benefits.
Proud service members, Veterans, or surviving spouses of Veterans can apply for a VA home loan. It's recommended for applicants to get their Certificate of Eligibility (COE) to know their maximum loan limit, and getting preapproved is an option. For homebuyers with less than full entitlement, conforming loan limits apply.
*For information on how to secure a Certificate of Eligibility (COE), visit here.
VA home loans come with their share of advantages. Debt-to-income ratios are flexible and include consideration of geographic location, family size, and residual income. Other advantages include:
While VA home loans are an excellent option for buying homes, they're tailor-made for a restricted section of buyers. Additional disadvantages include:
A VA home loan generally takes 40-50 days to close, regardless of the program. Factors affecting the closure timeline include the preapproval process, VA appraisal turn times, the condition of the estate, and final underwriting.
Preapproval for a VA home loan can be done with a trusted mortgage professional and VA lender. It’s a good idea to gather financial documents and COE before starting the process.
A VA home loan must only be used to purchase a primary residence. However, converting the property into a second home or investment property after living there for some time is permitted.