A VA loan is a mortgage loan issued by private lenders for military borrowers. Currently, VA loans are the most substantial loan options available. If you or someone you know qualifies, here is a look at how VA loans work.

What is a VA Loan?

A VA loan is a flexible, $0-down payment mortgage loan option, partially backed by the Department of Veterans Affairs. VA loans can be utilized to purchase a primary property or refinance an already existing mortgage.


There are a few circumstances that qualify you for a VA loans:

  1. You served 90 consecutive days of active service during wartime.
  2. You served 181 consecutive days of active service (not during wartime).
  3. You have 6 years of service in the National Guard or Reserves.
  4. You are a spouse of a service member who passed away during duty or a service-related disability.

There are also additional factors that could qualify you for VA loans:

  1. You served from November 1, 1955 (Vietnam War Era).
  2. You are a service member or Veterans mobilized to perform full-time National Guard duty for not less than 90 cumulative days, including at least 30 days consecutive.
  3. You are a veteran, service member, or certain surviving spouse with VA-guaranteed home loans in areas that have been declared major disasters by the President and your residence has been substantially damaged. You are now eligible to be charged a first time use funding fee on a new VA-guaranteed loan rather than a subsequent use funding fee. The new VA-guaranteed loan must be for the repair or construction of the dwelling and closed within three years of the presidential declaration of the disaster.

If any of the above applies to you, you are eligible for a VA loan. To see if you meet the requirements, click here.

How They Work

If you are a potential VA loan candidate, know that the process of a VA loan is a bit different from conventional loans.

First, you will have to get pre-qualified. This is something that our team can help you with, your pre-qualification will help determine how much home you can afford.

Once you have been pre-qualified, you will have to get pre-approved. This is a very significant step in the loan process. Our team will verify your information to determine your purchase capability. As soon as this is completed, you will be sent a letter of pre-approval, giving you a more advantageous buying position.

When you are ready to submit an offer, you will work with your agent to put in a competitive offer on the home.

Here is where the process deviates from a conventional loan as you’ll need to go through the VA appraisal and underwriting processes. The VA appraisal will assure that the home meets the VA’s minimum property requirements. In accordance, if the underwriters determine everything is favorable, you will be cleared to close your loan.

Finally, you will close on your home loan. Our team of experts will guide you through the paperwork and documents needed to complete.

Key Takeaway’s

VA loans are a powerful option for qualifying homebuyers. It is important to know that the loan only qualifies for certain homes and primary residencies only. They have no down payment requirement, but they do come with a fee that assures the program is continued. If you are looking for a VA loan, contact one of our team members today!