What Is A VA Loan

A VA loan is a mortgage issued by private lenders and guaranteed by the VA. This guarantee allows lenders to offer favorable terms,

• No down payment: Eligible borrowers can finance up to 100% of the home’s purchase price.​ 
• No private mortgage insurance (PMI): Unlike conventional loans, VA loans don’t require PMI, reducing monthly payments.​
• Competitive interest rates: VA loans often come with lower rates compared to conventional loans. 
• Flexible credit requirements: The VA’s backing allows lenders to offer more lenient credit standards.​
• Cash out refinancing with loan to value higher than FHA or Conventional

Eligibility Requirements

To qualify for a VA loan, you must meet certain service requirements. Generally, this includes:​

• Active-duty service members: Typically, 90 continuous days of active service. 
• Veterans: At least 90 days of active service during wartime or 181 days during peacetime.​
• Surviving spouses: Certain surviving spouses of veterans who died in service or as a result of a service-connected disability.​

A Certificate of Eligibility (COE) from the VA is required to verify your entitlement. This can be obtained through a VA-approved lender or the VA’s e Benefits portal.