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VA Home Loans

Home Loans for Veterans and Active Duty Military

  • CheckmarkHome purchase mortgages
  • CheckmarkLow rates and low fees
  • CheckmarkExclusively for the military community

What Is a VA Home Loan?

VA home loans are mortgage loans uniquely offered to members of the military community, including active duty, National Guard, Reserves and Veterans.

Benefits of VA home loans may include:

  • No down payment
  • No minimum credit requirements set by VA (however, some lenders may require a minimum FICO score)
  • No monthly mortgage insurance*
  • Lower cash reserves
  • Easier refinancing with an Interest Rate Reduction Refinance Loan (IRRRL)–as no appraisal and no income verification are required
 

VA home loans can be used to purchase a home as well as to finance new construction. VA Home Loans for new construction allow qualified borrowers to use their VA entitlement toward both the mortgage phase of the loan as well as the initial construction phase financing of the new build.

Read more about construction loans here.

*While borrowers are exempt from having to pay monthly mortgage insurance (usually required on most mortgages when you have less than 20% down on the home), VA Home Loans do require a funding fee. However, disabled Veterans may qualify to get a reduced or no funding fee with a VA mortgage.

VA Home Loan Requirements

To qualify for a VA Home Loan, you must meet one of the following eligibility requirements:

  • You have served 90 consecutive days of active service during wartime
  • You have served 181 days of active service during peacetime
  • You have 6 years of service in the National Guard or Reserves
  • You are the surviving spouse of a servicemember who has died in the line of duty or as a result of a service-related disability

It is helpful to have a VA Loan Certificate of Eligibility (COE) on hand when applying for a VA Home Loan. Your COE provides mortgage lenders with confirmation that you qualify for VA benefits.

To obtain your VA Loan COE, you can:

  • Apply through a VA approved lender
  • Apply online through the VA’s eBenefits portal
  • Apply by mail with VA Form 26-1880

VA Home Loan Rates

VA Home Loans are backed by the US federal government, which means that mortgage lenders can charge competitively low interest rates—typically much lower than that of conventional mortgages.

With AAFMAA Mortgage Services LLC (AMS), our licensed Military Mortgage Advisors will help you determine the rate on your VA Home Loan based on your individual financial situation.

Rates may vary depending on the following factors:

  • Credit score
  • Loan Type
    • Purchase
    • IRRRL (also known as a streamline refinance)
    • Cash-Out Refinance
    • Jumbo
  • Loan Term
    • 15 years
    • 30 years
  • Market conditions

Read more: VA Loan Update: Larger Loans (Still with No Down Payment)

Build Your Future with AAFMAA Mortgage Services LLC (AMS)

Exclusively serving the military community, we will help you get a mortgage that offers low rates and low costs with flexible terms to fit your financial situation and needs.

Get a free mortgage assessment today or call us at 844-247-4208 to get started.

Common Questions

A Certificate of Eligibility (COE) is a form of documentation that confirms your VA Home Loan eligibility to mortgage lenders. You are not required to provide a COE when applying for a VA Home Loan, however, it may ease the process to have yours on hand before starting the application process.

You can apply for your COE directly through a VA approved lender, online through the VA’s eBenefits portal or by mail with VA Form 26-1880.

It depends. VA Home Loans do come with a funding fee that varies based on whether or not you’ve used your VA benefit before and if you put money down. However, not all borrowers are required to pay the funding fee. Be sure to check with your Military Mortgage Advisor for details.

You may be exempt from paying the VA funding fee if: 1) you’re a Veteran receiving VA disability pay for a service-connected disability; 2) you’re a Veteran who would be entitled to receive disability pay for a service-related disability if you weren’t receiving retirement or active-duty pay; or 3) you’re the surviving spouse of a Veteran who died while on duty or as a result of a service-related illness or disability.

To qualify for exemption, you must fill out the VA funding fee exemption form. Click here for more information.

It varies based on many factors. As VA Home Loans are backed by the US federal government, rates can be competitively low and will vary by lender. To calculate an individual’s VA Home Loan rate, our Military Mortgage Advisors will consider factors such as credit score, the loan type (purchase, IRRRL, Cash-Out, Jumbo, etc.), the loan term (15-year versus 30-year) as well as current market conditions.