A Breakdown of VA Home Loans

Loan Application FormPeople in the military perform a valuable service for their fellow citizens. It’s just right that they should reap the benefits, and one of this is housing. The U.S. Veteran Administration offers veterans and active service members with the chance to own a house under the VA home loan program. All they have to do is to find a VA loan company to see if they qualify. Here is a breakdown of VA home loans as stated by Primary Residential Mortgage, Inc. and other loan experts:


VA home loans offer favorable terms. Approved applicants do not have to pay a down payment as long as the selling price is not more than the appraised value. They do not have to pay for mortgage insurance, as well.

This type of loan has a slightly lower interest rate than conventional loans. The VA outs a strict limit on how much a lender can charge for closing costs, which is not the case for other types of home loans. The biggest drawback to a VA loan is time. It can take several weeks to close a VA loan than a regular loan. However, it is worth the wait if you qualify.

Role of the VA

The Veterans Administration does not give out VA loans. It authorizes mortgage companies and private lenders to offer it to eligible homebuyers. Lenders can offer the benefits above because the VA guarantees part of the loan. The VA allows you to use a VA home loan to buy a house, refinance an existing mortgage, or build or remodel a home to accommodate disabled veterans. Native American veterans can also use it to buy, build, or renovate a home on federal trust land at lower interest rates.


VA home loans have many benefits, but you have to earn the right to get one. You have to have served at least…

  • Two years in the regular service post-Vietnam
  • Wartime: 90 days consecutive days active duty
  • Peacetime: 181 days of active duty
  • Six years as a reservist or in the National Guard

You may also qualify if you’re a surviving spouse of a disabled, deceased, MIA, or POW veteran.  You will not qualify, however, if you or your spouse got a dishonorable discharge. You need to have a steady income and a credit score of 620 or better. If you think you qualify for a VA home loan, apply for a Certificate of Eligibility from the Veterans Administration. It’s the first thing a VA loan company will want to see.

A VA loan company will accommodate you if you can produce a Certificate of Eligibility for a VA home loan. If you are not sure you qualify, you can find out in several ways. The benefits of a VA home loan are worth the effort.