Check Your VA Loan Eligibility

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VA Purchase Loans

With a VA-backed home loan, the VA guarantees a portion of the loan you get from a private lender. 

If your VA-backed home loan goes into foreclosure, the guarantee allows the lender to recover some or all of their losses. 

Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. 

Get a VA home loan quote.

Benefits Of A VA Backed Purchase Loan

A VA-backed purchase loan often offers:  

No down payment as long as the sales price isn’t higher than the home’s appraised market value 
Better terms and interest rates than other loan programs from private banks, mortgage companies, or credit unions
No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)  
Fewer closing costs, which may be paid by the seller
No prepayment penalty if you pay the loan off early

The Home Buying Process

Buying a home is a complex process, and getting a VA-backed loan is only one piece of the puzzle. Stay on track by following the steps below.

1. Apply for your VA-backed home loan Certificate of Eligibility (COE) 

You’ll need to show your COE to your lender as proof that you qualify for the home loan benefit.

How to apply for a COE

2. Look at your current finances 

Go over your credit report, income, expenses, and monthly budget to make sure you’re ready to buy a home. Decide how much you can afford to spend per month on your mortgage. Don't forget to include taxes and insurance in your estimated payment.

3. Choose a lender 

Remember, you’ll go through a private bank, mortgage company, or credit union to get your loan. 

Be prepared to pay lender fees. Fees vary from lender to lender and from state to state. 

Find an approved VA lender.

4. Choose a real estate agent 

Get recommendations for potential real estate agents online or from relatives, friends, and neighbors. Meet with several agents to find one you like.

5. Shop for a home 

Its a good idea to make a list of the factors that are important to you before you begin your search. The school district, commute to work, religious centers, and other criteria may help you narrow your search. You'll want to look at a lot of houses to get a feel for the market and what's available. 

Last updated September 23, 2020