VA Loan Frequently Asked Questions (FAQ)
1. What is a VA loan?
A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs, designed to help eligible veterans, active-duty service members, and select military spouses buy, build, or refinance a home with favorable terms.
2. Who is eligible for a VA loan?
Eligibility is based on service history, length of service, and duty status. Veterans, active-duty service members, National Guard members, Reservists, and some surviving spouses may qualify.
3. What are the benefits of a VA loan?
VA loans offer no down payment, no private mortgage insurance (PMI), competitive interest rates, and flexible credit requirements.
4. Do VA loans require a down payment?
No, most VA loans do not require a down payment, making homeownership more accessible for eligible borrowers.
5. What is the VA funding fee?
The VA funding fee is a one-time payment required on most VA loans. It helps sustain the VA loan program and varies based on factors like loan type and service category. Some veterans may be exempt from this fee.
6. Can I use a VA loan more than once?
Yes, VA loans are reusable. As long as you have remaining entitlement or restore your entitlement, you can use a VA loan multiple times.
7. What is the VA loan entitlement?
Entitlement is the amount the VA guarantees on your loan. If you have full entitlement, you won’t be limited by loan caps.
8. Can I get a VA loan with bad credit?
VA loans have more flexible credit requirements than conventional loans. While lenders have minimum credit scores, VA loans make homeownership possible for many with less-than-perfect credit.
9. Can I use a VA loan to buy an investment property?
No, VA loans are only for primary residences, not investment properties or vacation homes.
10. Can I refinance my home with a VA loan?
Yes, you can refinance with a VA Interest Rate Reduction Refinance Loan (IRRRL) or a VA cash-out refinance.
11. What is a VA Interest Rate Reduction Refinance Loan (IRRRL)?
An IRRRL, or VA streamline refinance, allows you to lower your interest rate and monthly payment with minimal paperwork and no appraisal requirement.
12. Can I use a VA loan to build a home?
Yes, VA loans can be used for new construction, but not all lenders offer VA construction loans.
13. Can I use a VA loan for a manufactured or mobile home?
Yes, VA loans can be used to purchase manufactured homes, but they must meet VA and lender guidelines.
14. Are VA loans assumable?
Yes, VA loans are assumable, meaning another eligible borrower can take over your loan under the same terms.
15. How long does it take to get a VA loan?
The timeline varies, but most VA loans close within 30-45 days, depending on the lender and loan complexity.
16. Does the VA set loan limits?
If you have full entitlement, there is no loan limit. If you have partial entitlement, county loan limits may apply.
17. Can I use a VA loan after bankruptcy or foreclosure?
Yes, after waiting periods (typically 2 years for bankruptcy and foreclosure), you may still qualify for a VA loan.
18. Can I have two VA loans at the same time?
Yes, in some cases, you can have two VA loans if you have remaining entitlement and meet lender qualifications.
19. Does the VA issue the loan?
No, the VA guarantees the loan, but private lenders (such as banks and mortgage companies) issue the loan.
20. What type of homes can I buy with a VA loan?
VA loans can be used to purchase single-family homes, condos in VA-approved projects, and multi-unit properties (up to four units if you live in one).
21. What fees do I have to pay with a VA loan?
Besides the VA funding fee (if applicable), you may pay closing costs such as appraisal fees, title insurance, and lender fees. However, VA limits what lenders can charge.
22. Do VA loans have prepayment penalties?
No, VA loans have no prepayment penalties, so you can pay off your loan early without extra fees.
23. How do I get my VA Certificate of Eligibility (COE)?
You can apply online through the VA’s eBenefits portal, through your lender, or by mail with VA Form 26-1880.
24. Can I use a VA loan if I’ve already had a foreclosure?
Yes, but you may need to restore your entitlement and wait at least two years after the foreclosure.
25. Where can I apply for a VA loan?
You can apply through VA-approved lenders, including Veterans Mortgage Solutions, which specializes in helping veterans secure the best mortgage options.