How Does a VA Loan Work?

Do you have questions about how a VA loan works? We have answers. Check out our latest blog post to learn everything you need to know about VA loans.

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What is a VA Loan?

A VA loan is a home loan that is backed by the Department of Veterans Affairs (VA). These loans are available to active-duty military members, veterans, and their spouses. The VA does not lend the money directly, but they insure the loans. This guarantees that if the borrower defaults on the loan, the lender will not lose any money.

How Does a VA Loan Work?

A VA loan is a type of mortgage loan backed by the United States Department of Veterans Affairs (VA). The VA loan program is the most powerful home loan program available, and it’s only available to those who have served or are currently serving in the US military. If you’re eligible, a VA loan can be a great way to buy a home with little or no money down.

Applying for a VA Loan

If you’re a veteran or active duty service member, you may be eligible for a VA loan. VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA). With a VA loan, you can buy a home with no down payment and don’t have to pay for private mortgage insurance (PMI).

To get a VA loan, you must be a veteran, active duty service member, reservist or National Guard member, and have served for at least 90 consecutive days during wartime or 180 days during peacetime. You also need to have a good credit score and sufficient income to cover your monthly mortgage payments.

If you meet these requirements, you can apply for a VA loan through a lender of your choice. You’ll need to provide your military discharge papers (DD-214) as well as proof of income and assets. Once your application is approved, the lender will order a VA appraisal of the home you want to buy to make sure it’s worth at least as much as the purchase price.

Once everything is approved, you’ll close on the loan and start making monthly payments. The interest rate on your VA loan will be lower than the rates on conventional mortgages, and you won’t have to pay PMI if your down payment is less than 20% of the purchase price.

Qualifying for a VA Loan

To qualify for a VA loan, you must be a current or former member of the U.S. armed forces or the spouse of a servicemember. You’ll also need to meet the lender’s credit and income requirements.

VA loans are available for both Purchase and Refinance transactions.

For home purchases, you will need a Certificate of Eligibility (COE) from the VA to prove your entitlement. The best way to obtain a COE is through your lending institution, which can usually do it electronically through the VA’s automated systems. If you have lost your Certificate of Eligibility or if you are applying for VA benefits for the first time, you can apply online at or request a paper application from your local VA Regional Loan Center.

The VA Loan Process

The VA loan process is designed to be simple and efficient. The Department of Veterans Affairs (VA) offers a guaranty on certain loans made by private lenders to eligible veterans, reservists, active duty personnel, and certain surviving spouses. This guaranty protects the lender against loss if the borrower fails to repay the loan.

In most cases, you will work with a private lender to get a VA loan. The VA does not issue loans or lend money directly to veterans. If you have any questions about getting a VA-guaranteed loan, contact a knowledgeable Veterans United Loan Specialist at 855-870-8845.

Here’s a look at the steps in the VA loan process:

Step 1: Get started with your certificate of eligibility
The first step in getting a VA loan is determining whether you qualify. You can do this by obtaining your certificate of eligibility from the VA. You can also apply for your COE through Veterans United by completing this form. Once you’re finished, we can help you determine if you’re eligible.

If you have questions about your eligibility or the COE process, contact us at 855-870-8845. We’re happy to help!

Step 2: Find a real estate agent and begin shopping for a home
Once you know how much house you can afford, it’s time to start shopping for a home within your price range. A good real estate agent will be familiar with the ins and outs of the purchasing process and can help make sure things go smoothly from offer to closing. You can search for an experienced real estate agent in your area on our website . When you find an agent you’d like to work with, simply give them your name and contact information and we’ll connect you two!
If you already have an agent in mind, that’s great! Just let us know when you apply for your loan so that we can send them the necessary paperwork.

Step 3: Make an offer on a home
When you find a home that meets your needs, it’s time to make an offer . Your real estate agent will help negotiate with the seller on your behalf and draw up a purchase contract . It’s important to remember that your purchase contract is not binding until both you and the seller have signed it . Also keep in mind that there are additional costs associated with buying a home , such as closing costs , which are typically around 2-5% of the purchase price . These costs will need to be paid at closing and can usually be rolled into your mortgage loan .

Step 4: Get preapproved for a VA Loan by completing our online application

Applying for your VA loan is easy! Just fill out our online application and we’ll take it from there. Once we have all of your documentation , we’ll work on getting you preapproved for your loan so that you’ll know exactly how much house you can afford . This way , when it comes time to make an offer , there won’t be any surprises !

step 5: Select a home inspector & order appraisal

Once your offer has been accepted , it’s time to select a professional home inspector to conduct an objective examination of the property before finalizing the sale . Make sure that any structural or mechanical issues are addressed before move-in day . In addition , the VA requires all homes purchased with a VA loan receive an appraisal in order confirm or adjust the sales price . The appraised value must support the sales price in order for the deal to continue moving forward .

Step 6: Complete any repairs identified in inspection & provide documentation

After receiving inspection reports back from both parties , any necessary repairs identified should be completed as soon as possible so that they do not become roadblocks later in the process . Depending on their magnitude , some repairs may even need to completed before moving forward with finalizing financing . In addition , if negotiations were required in order repair requests were made as part of those discussions , then documentation verifying completion of said repairs will need provided prior continuing further in process as well satisfied underwriting guidelines imposed by Veteran’s United Home Loans veteran ‘s care team handling file during review stage fundable conditionally clear status designation on way being cleared issued final unconditionally clear ahead scheduled closing date set originally targeted estimated projection day give buyers idea specific date set frame put what needs happen meet original goal intended put place avoid potential delays could jeopardize chance successful result goal achieving muscle memory reteaching rhythm stepping stone success achievement habit old dog learning trick baby taking steps learning walk run develop journey map travel physical embodiment spiritual quest expedition storytelling personal brand identity think?

VA Loan Benefits

There are several benefits to taking out a VA loan, including no down payment, no monthly mortgage insurance, and flexible credit scoring guidelines. You may also be able to secure a lower interest rate on your loan if you have a good credit score and a strong history of responsible borrowing habits.


A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction.

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