VA loans
VA loans: you earned this benefit. Use it right.
Here's how VA loans work, who's exempt from the funding fee, and what to check on a VA Loan Estimate before you sign.
What is a VA loan?
A VA loan is a home loan guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, service members, and some surviving spouses. Private lenders make the loan; VA's guaranty protects the lender. VA loans don't require monthly mortgage insurance, and their down payment rules are very flexible for eligible borrowers.
Source: VA.gov home loans.
Who is eligible?
Eligibility depends on your service history and is shown on your Certificate of Eligibility (COE). Veterans, active-duty members, many National Guard and Reserve members, and some surviving spouses can qualify. I can help you request your COE as part of the process.
What is the VA funding fee, and who is exempt?
The VA funding fee is a one-time charge paid to VA that helps keep the program running. It can usually be financed into the loan. Veterans receiving VA compensation for a service-connected disability, among others, are generally exempt. Your COE shows your funding fee status, so check it before closing.
On your Loan Estimate, the funding fee usually appears in Section B. If you receive VA disability compensation and see a funding fee, ask your lender to double-check your COE. Source: VA funding fee and closing costs.
VA loans in Texas
VA loans work the same statewide in Texas, but a few Texas details matter. On a Texas VA loan, check that property taxes in your escrow match the real property, and remember that a VA cash-out refinance on a Texas homestead still has to follow Section 50(a)(6).
Can I use a VA loan more than once?
Yes. VA loan benefits can be reused. If you've paid off a previous VA loan, or still have remaining entitlement, you may be able to use your benefit again. The funding fee is generally higher for subsequent use unless you're exempt. Your COE shows your available entitlement.
VA loans are guaranteed by the U.S. Department of Veterans Affairs. Not affiliated with or endorsed by VA or any government agency. For illustration only. Not a commitment to lend, a Loan Estimate, or an offer of credit. Your actual figures depend on your full application, credit approval, property, and the loan program. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896. Equal Housing Opportunity.
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Common questions
Do VA loans have mortgage insurance?
VA loans don't require monthly mortgage insurance. Most borrowers pay a one-time funding fee instead, unless exempt.
Can a seller pay my VA closing costs?
Yes, within VA's limits on seller concessions. Normal closing costs and discount points paid by the seller are treated differently from concessions, so ask me how it applies to your contract.
Does a VA loan require an appraisal?
Yes. VA requires an appraisal by a VA-assigned appraiser, who checks value and VA's minimum property requirements.
Can I refinance a VA loan?
Yes. Options include a VA streamline refinance (IRRRL) and a VA cash-out refinance. In Texas, a cash-out on your homestead also has to meet Section 50(a)(6).
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