What it is

In plain language

The Department of Veterans Affairs guarantees part of the loan, which is why a lender will finance the full purchase price with nothing down and no monthly mortgage insurance.

There is a one time funding fee, usually financed into the loan, and it is waived entirely for veterans receiving compensation for a service connected disability.

Who it fits

This is probably you if

  • You are an active duty service member, a veteran, or a National Guard or Reserve member who meets the service requirement
  • You are a surviving spouse who has not remarried
  • You want to keep your savings rather than hand them over as a down payment
How it works

Three steps, in order

  1. We pull your Certificate of Eligibility, which usually takes minutes rather than days.
  2. We look at residual income, the money left after your obligations, which is how VA really underwrites. The 41 percent debt-to-income figure is a guideline, not a wall.
  3. You close with no down payment and no monthly mortgage insurance in the payment.
Questions

What people ask me

Yes. The entitlement is restored once a previous VA loan is paid off, and in some cases you can hold two VA loans at the same time. It is not a one use benefit, and a lot of veterans are told otherwise.

It is waived for veterans receiving compensation for a service connected disability, and for some surviving spouses. Everyone else pays it, but it is almost always financed rather than paid at closing.

Some agents still believe VA loans are slow or fragile. They are not, and a well documented VA file closes as reliably as any other. Part of my job is making sure your offer is presented so that story never comes up.

Next step

Think VA Home Loan might be the one

Let us confirm it against your actual numbers before you fall in love with a house.

Get Prequalified