VA Loan

What is a VA Loan?

A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction.

The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

Which VA Loan Program is Right for You?

If you are considering a VA loan, it is important to speak with one of our loan specialists to see if you are eligible and to compare the benefits and drawbacks of this type of loan against other types of loans.

We offer a no-hassle & easy quote without the formal application or credit check required. Just answer a few questions about your mortgage goals! We will review the information you provide with some recommendations and options from our team of experts!

Types of VA Loans

VA Purchase Loans

VA purchase loans allow qualified service members to purchase a home with no minimum down payment.

VA Construction Loans

Eligible service members can use this loan to build the home of their dreams.

VA Cash-out Refinance Loans

VA cash-out loans allow service members to swap out their conventional mortgage with a VA loan, with an option to turn home equity into cash if needed.

VA Refinance Loans (IRRRL)

Also called "VA Streamline Refinance Loans", allows service members to replace a VA mortgage with a VA Interest Rate Reduction Refinance Loan (IRRRL), which can offer lower interest rates. It can also be used to change from an adjustable-rate loan to a fixed-rate loan.

VA Rehab & Renovation Loan

A VA Renovation loan can be used by service members to finance the cost of improvements made to the home.

Native American Direct Loan (NADL)

This is available to Native American veterans to help them purchase, build, improve, or refinance a home that is located on federal trust land

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Common VA Loan Questions

Certificate of Eligibility

The VA determines your eligibility and, if you are qualified, the VA will issue you a Certificate of Eligibility to be used in applying for a VA loan. This form will provide the information about how much your home loan benefit is, and should also indicate if you are eligible for a funding fee waiver. You may be able to obtain your COE electronically through the VA. If that doesn’t work, you’ll need to fill out a specific form and email or fax it to your regional VA office to have it completed. Command Financial can assist with this process. Often these can instantly be pulled electronically through the VA portal. If not we can request a copy on your behalf with a copy of your DD-214.

For more information or to Apply for a COE, visit https://www.va.gov/housing-assistance/home-loans/how-to-request-coe/

Can existing VA borrowers lower their interest rates?

Yes, the Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA Streamline Refinance, gives existing VA loan holders the opportunity to lower their interest rate. This option requires borrowers to refinance their current VA loan into another VA loan.

The advantage to an IRRRL is that income underwriting is not required. Additionally, you don’t have to pay cash out of pocket. An IRRRL is structured so than any fees are rolled into the new loan or the interest is adjusted so that the borrower’s costs are covered.

A VA appraisal and pest inspection is not required for an IRRRL.

What are VA loan funding fees?

Although the costs of getting a VA loan are generally lower than other types of low-down-payment mortgages, they still carry a one-time funding fee that varies, depending on the amount of the down payment and military category. This fee helps to fund the VA program. VA funding fees are required on all loans unless the veteran is exempt from paying the fee. A VA disability rating of 10% or more will allow for exemption from the funding fee. Your COE is used to verify the exemption.

Do VA loans require PMI?

No, VA loans do not require private mortgage insurance.

Are there VA home loan occupancy requirements?

VA loans typically require borrowers to move into their home within 60 days of purchase and to use it as their primary residence. However, exceptions can be made depending on the circumstances.

Borrowers can’t use VA loans to buy investment properties or second homes.However, it is possible to have more than 1 VA home loan at the same time.

1-4 unit properties are eligible for VA financing so long as 1 unit is owner occupied.

What are VA loan underwriting requirements?

The VA doesn’t require a minimum credit score for a VA loan, but lenders generally have their own internal requirements. Command Financial Group is often able to get financing for qualified borrowers with scores as low as 500.

Is there help for struggling VA borrowers?

Another advantage of a VA loan is the assistance offered to struggling borrowers. If the borrower of a VA loan can’t make payments on the mortgage, the VA can negotiate with the lender on behalf of the borrower.