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We’re calling on mortgage servicers to pause foreclosures of VA-backed home loans through May 31, 2024. We encourage any Veteran struggling with making their payments to visit VA help to avoid foreclosure.
Acting Executive Director for the VA Home Loan Program talks with the president of the National Association of REALTORS® to discuss the VA home loan program Watch Part 1: VA Loans 101 Watch Part 2: Reducing Barriers for VA Borrowers
About Home Loans
VA helps Veterans, Servicemembers, and eligible surviving spouses become homeowners. We offer a home loan guarantee benefit and other housing-related programs as part of our mission to serve you, to assist you in purchasing, building, maintaining, or modifying a home for your own personal use.
Private lenders, including banks and mortgage companies, offer VA home loans. A portion of the loan is guaranteed by VA, so the lender can offer you better terms.
Read our guide for buying a home
Make sure you read the VA Home Loan Buyers Guide before making a purchase. This guide can assist you with the home-buying process and maximizing the value of your VA loan. Download the Buyers Guide here.
Main pillars of the VA home loan benefit
- No down payment is necessary (*Note: VA does not require a down payment, but lenders may require one for certain borrowers using the VA home loan guarantee).
- Competitively low interest rates
- Limited closing costs
- No need for Private Mortgage Insurance (PMI)
- One lifetime benefit of the VA home loan is the ability to utilize the guarantee more than once.
Benefits
Purchase Loans Help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. Learn More
Interest Rate Reduction Refinance Loan (IRRRL): Also called the Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan. Learn More
Native American Direct Loan (NADL) Program: Helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan. Learn More
Adapted Housing Grants: Help Veterans with a permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to account for their disability. Learn More
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Foreclosure Avoidance Assistance: VA provides financial counseling to help Veterans avoid foreclosure during periods of financial difficulty. Learn More
State Resources: Many states offer resources to Veterans, including property tax reductions to certain Veterans. Learn More
Listen to a podcast about the advantages of the VA Home Loan program and practical advice for home ownership. VA Loan Overview Listen Here.
Eligibility Requirements
Your eligibility for particular home loan benefits is determined by your length of service or service commitment, duty status, and service character.
*National Guard members who have served for at least 90 days actively, including at least 30 days in a row under Title 32, Sections 316, 502, 503, 504, or 505, are now eligible.
Purchase Loans and Cash-Out Refinance: VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE). Learn More
Interest Rate Reduction Refinance Loan (IRRRL): The IRRRL is a “VA to VA” loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan. Learn More
Native American Direct Loan (NADL) Program: The NADL program helps Native American Veterans purchase, construct, improve, or re-finance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE). Learn More
Adapted Housing Grants: VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant. Learn More
How to Apply
Purchase Loan & Cash-Out Refinance: VA loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through your lender, VA.gov, or by mail. Learn More
Interest Rate Reduction Refinance Loan: A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your lender may use our e-mail confirmation procedure in lieu of a COE. Learn More
Native American Direct Loan (NADL) Program: First, confirm that your tribal organization participates in the VA direct loan program. NADL loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through VA.gov, or by mail. Learn More
Adapted Housing Grants: You can apply for an SAH or SHA grant by either downloading and completing VA Form 26-4555 (PDF) and submitting it to your nearest Regional Loan Center, or completing the online application. Learn More
Notice of External Links: This page has links that will exit the Department of Veterans Affairs website. The linked websites’ content is not endorsed by VA, and it is not under its control.
FAQ
What is a VA loan and how does it work?
What is the process for a VA-backed home loan? Basically, a portion of the loan that you obtain from a private lender is guaranteed by us. The guarantee enables the lender to recoup all or part of their losses in the event that your VA-backed house loan is put into foreclosure.
What is the difference between a VA loan and a regular loan?
Veterans, active-duty military personnel, and surviving spouses who fulfill the eligibility requirements are the only parties who are eligible for VA loans. Conventional loans do not have these eligibility requirements. Only VA loans are available for primary residence purchases or refinancing.
Do you have to pay back VA loan?
To get a loan, you apply to the lender. VA guarantees the loan upon closing if it is approved. Because of the guarantee, the lender is shielded from loss should you or a subsequent owner decide not to repay the loan. 1.
Read More :
https://www.benefits.va.gov/homeloans/
https://www.consumerfinance.gov/ask-cfpb/what-is-a-va-loan-en-113/