If you’ve served in the U.S. military, you’re probably familiar with the U.S. Department of Veteran’s Affairs (VA) — maybe you’ve already worked with them. The VA is best known for helping veterans, active service members and their families navigate benefits, healthcare, pensions and insurance.

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But did you know that the VA also serves as a valuable resource for veterans looking to buy a home? Plus, research shows that veterans who work with an independent mortgage broker to help guide them through the VA loan process can save $13,432* per loan on average. 

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Additionally, VA home loans offer lifetime benefits for the military community, allowing you to use the VA Home Loan Guaranty as many times as you wish. Whether you choose to relocate, downsize or upgrade, the VA is there to support you.

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What Is A VA Home Loan?

VA loans are mortgage loans backed by the VA. These loans can help veterans, active service members, National Guard and Reserve service members, as well as eligible spouses, become homeowners. In addition to the VA Home Loan Guaranty benefits, they support people in the military community when buying, building, repairing and updating their homes.

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VA Home Loan Benefits

Although you’re not getting a mortgage directly from the VA, when you apply for your loan with a mortgage lender or bank, the VA essentially guarantees a portion of it. This allows those lenders to offer veterans more favorable terms and rates.

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Here are a few advantages of VA loans:

• Interest rates are typically lower compared to conventional loans
• Closing costs are generally capped, making the process more affordable
• Credit requirements are often more lenient, accommodating a wider range of borrowers
• Qualifying borrowers are eligible to buy a house with no money down, provided the sale price of the home does not exceed the appraised value
• There are no fees for paying off these loans ahead of schedule
• Private mortgage insurance (PMI) is not required, helping keep monthly payments down
• Loan amounts available up to $4 million

Assistance For Veterans Who Are Homeowners

With sudden shifts in the housing market or sudden changes in job circumstances, life can be unpredictable. The VA offers various home financing assistance programs tailored to supporting veterans in situations including:

• Home foreclosure assistance: VA specialists are available to assist if you’ve fallen behind on mortgage payments to help you avoid foreclosure on your home.
• Cash-out refinance loans: The VA offers cash-out refinances if you want to access funds from your home’s equity or if you want to refinance a non-VA loan into a VA-backed mortgage. VA home loans are cash-out refinance eligible for up to 100% of your home’s equity.
• Interest-rate reduction refinance loans (also known as VA IRRRLs): A VA IRRRL provides the opportunity to refinance a VA-backed loan to potentially get a lower monthly mortgage payment and interest rate.
• Temporary rate buydowns: A buydown helps a borrower get a lower monthly payment at the start of their mortgage, which can ease the transition for new homeowners, typically during the first 1–3 years of their loan.

VA Home Loan Eligibility

So, what are the criteria to be eligible for a VA home loan? A borrower’s length of service or service commitment, duty status and character of service are all taken into account by the VA when determining benefits.

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Current service members who have served for at least 90 consecutive days, for example, meet the minimum requirement for active-duty service. For veterans, on the other hand, it depends on when you served. National Guard members are eligible with 90 days of active service, with only 30 consecutive days required. Always check the latest guidelines from the VA for current eligibility.

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You will need to obtain a Certificate of Eligibility (COE), which verifies your eligibility for VA benefits based on your service history and duty status. Surviving spouses of veterans may also be eligible for a COE. Your lender will help you obtain any required COEs. Keep in mind that to be approved for a VA-backed mortgage, you still have to fulfill the specific credit and income criteria set by the lender.

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No matter when you or your family member served, if you’re ready to buy or refinance a home — or if you just want to learn more about your options — contact your local home loan expert here on Mortgage Matchup who will help you find the right mortgage for your personal situation!

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*Polygon Research. $13,432 average savings based on full loan term, loan-level analysis of rates, charges and credits for non-bank 30-YR FRM VA purchase site-built one to four units, loans sold directly to agency with a $400,000 reference loan value. Performed with 2023 HMDA LAR data.