VA Loans: Home Financing for Eligible Veterans and Military

VA loans are government-backed mortgages available to eligible veterans, active-duty service members, and surviving spouses. They may allow zero down payment with no private mortgage insurance required, subject to VA and lender guidelines.

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What Is a VA Loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. It’s one of the most significant benefits available to eligible military service members, veterans, and surviving spouses. VA loans are originated by private lenders like American Mortgage Services and guaranteed by the VA, which allows lenders to offer favorable terms without requiring private mortgage insurance.

Who May Be Eligible for a VA Loan

Eligibility is based on your service history. You may be eligible if you are:

  • An active-duty service member who meets minimum service requirements
  • A veteran who was honorably discharged
  • A National Guard or Reserve member who meets certain service thresholds
  • The surviving spouse of a veteran who died in service or from a service-connected disability

You’ll need to obtain a Certificate of Eligibility (COE) to confirm your eligibility. Your loan officer can help you obtain your COE through the VA.

Key Benefits

  • No down payment required in most cases
  • No private mortgage insurance (PMI)
  • Competitive interest rates (subject to your credit and scenario)
  • No prepayment penalty
  • The benefit can be used more than once in many situations
  • Assumable by a qualified buyer

VA Funding Fee

Most VA borrowers pay a one-time VA funding fee, which helps sustain the VA loan program. The fee varies based on whether it’s your first use of the benefit, the loan type, and your down payment amount. The funding fee is typically financed into the loan.

Certain veterans are exempt from the funding fee, including those receiving VA compensation for service-connected disabilities. Talk with your loan officer about whether you may qualify for a fee exemption.

VA Loan Limits

VA no longer enforces a maximum loan amount for eligible borrowers with full entitlement. However, lenders may have their own limits for VA loans above conforming thresholds. Borrowers with partial entitlement (due to an existing VA loan or previous loss) may have county-based loan limits apply.

Property Requirements

VA loans are for primary residences only. The property must meet VA Minimum Property Requirements (MPRs), which ensure the home is safe, structurally sound, and sanitary. A VA-approved appraiser will assess the property during the appraisal process.

Limitations

  • Primary residence only (no investment properties or vacation homes)
  • VA funding fee applies (unless exempt)
  • Property must meet VA MPRs
  • Some property types (condos, manufactured homes) require additional VA approval

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Subject to credit, income, property, program, and lender guidelines. Talk with a loan officer about your specific scenario.

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