What is a VA Loan?

The VA (Department of Veterans Affairs) mortgage loan program is a government-backed home loan program designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves become homeowners. VA loans offer several advantages, including competitive interest rates, no down payment requirements (in most cases), and no private mortgage insurance (PMI). 

To qualify for a VA loan, you must meet certain eligibility criteria:

• Military Service: Generally, you must be a veteran with a discharge other than dishonorable, an active-duty service member, a member of the National Guard or Reserves, or a surviving spouse of a service member who died in the line of duty or as a result of a service-related disability.
• Length of Service: The specific length and type of service required may vary, but generally, veterans with at least 90 consecutive days of active duty during wartime or 181 days of active duty during peacetime are eligible. National Guard and Reserve members must generally have six years of service.

There is no maximum loan amount for VA loans; however, the VA does limit the amount it will guarantee, which is often referred to as the "entitlement." In most cases, the VA guarantees up to 25% of the loan amount, which typically allows borrowers to obtain a loan with no down payment up to a certain limit. Loan limits can vary by location and can change annually. 

VA loans typically have competitive interest rates compared to conventional loans. The interest rates on VA loans are determined by the market and can vary among lenders.

To obtain a VA loan, you must:

• Determine eligibility: Verify that you meet the VA's eligibility requirements.
• Obtain a Certificate of Eligibility (COE): You can apply for a COE online through the VA, or your lender can help you obtain one.
• Pre-approval: Get pre-approved for a VA loan by providing your financial information to the lender.
• House hunt: Find a home that meets VA loan standards and negotiate a purchase agreement.
• Loan application: Complete the loan application process with your chosen Pro Lending Site loan officer.
• Underwriting and approval: The lender will review your application, verify your financial information, and assess the property.
• Closing: Sign the loan documents, pay any closing costs, and take possession of the property.

• VA Funding Fee: Most VA borrowers are required to pay a funding fee, which helps offset the cost of the VA loan program. The fee amount depends on your service status, the down payment amount (if any), and other factors. Some veterans with service-connected disabilities may be exempt from this fee.
• Credit and Income Requirements: While VA loans generally have more flexible credit and income requirements than conventional loans, lenders may still have their own qualification standards.
• Property Standards: The property you intend to purchase with a VA loan must meet certain standards to ensure its safety and habitability.