VA Loan

The VA Loan Program is a government-backed mortgage designed to help eligible veterans, active-duty service members, and certain surviving spouses purchase or refinance a home with favorable terms and flexible underwriting standards

Eligibility & Certificate of Eligibility (COE)

• Must obtain a Certificate of Eligibility through the VA portal

• Eligibility is based on service history, discharge status, and entitlement

• Funding fee varies depending on first-time use, subsequent use, down payment, and disability status

Key Benefits

• Up to 100% financing available

• No private mortgage insurance

• Competitive interest rates

• Flexible credit guidelines

• Seller concessions allowed

• Streamline refinance option available through the VA Interest Rate Reduction Refinance Loan

Income & Qualification

• Residual income requirements apply based on region (Northeast, Midwest, South, West)

• Debt-to-income ratios above 41% require stronger compensating factors unless residual income exceeds guidelines by at least 20%

• Active-duty income verified with Leave & Earnings Statements

• Transfer orders required if relocating

• Letter of Explanation or Verification of Employment may be required for service changes or separation

Property & Documentation Requirements

• Owner-occupied primary residence only

• VA appraisal required

• Pest inspection required in many states

• Survey may be required

• Nearest living relative contact information must be provided

Refinance Options

• VA IRRRL for rate reduction with limited documentation

• Cash-out refinance available for qualified borrowers

The VA loan is designed to provide flexible, low-down-payment financing while maintaining strong underwriting standards that protect both the borrower and the VA guaranty program.