GovLoans.gov - VA - Home Loans

Program Description

VA loan guarantees are made for the purchase of homes, condominiums and manufactured homes (when they're classified as real estate).

VA guarantees a percentage of the loan. This helps the veteran obtain a no-down payment mortgage at a competitive interest rate.

VA loans may also be refinanced. (Please see Cash-Out or Interest Rate Reduction Refinancing Loans programs on this site. You can search on "Cash-Out" or "Interest Rate Reduction Refinancing." Be sure to include the quotation marks when you type in the entry.)

General Program Requirements

Persons who may qualify for VA guaranteed loans include:

Veterans (including Reserve and National Guard members who were called to active duty)
Active duty service members
Current Reserve and Guard members (usually after 6 years of reserve service)
Certain surviving spouses

Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are considered to be active duty members and veterans, once discharged.

Length-of-service requirements apply in most cases.

Veterans must have been discharged under conditions other than dishonorable.

You will need a valid Certificate of Eligibility (COE). You can get one from VA or from a lender using the Automated Certificate of Eligibility (ACE) program.

If you need to obtain your COE, contact a lender about obtaining your COE or download VA Form 26-1880, complete it and mail it (with proof of service) to our Winston-Salem Eligibility Center at:
VA Loan Eligibility Center
PO Box 20729
Winston-Salem, NC 27120

You can download the form at http://www.va.gov/vaforms/.

For overnight delivery:
VA Loan Eligibility Center
251 N. Main Street
Winston-Salem, NC 27155

Toll free number: 1-888-244-6711

E-mail: nceligib@vba.va.gov

Loan Terms

Market Interest Rate, VA funding fee and no pre-payment penalties. Maximum loan term cannot exceed 30 years. No maximum loan amount; monthly payment frequency.

Your Next Steps

The following information will lead you to the next steps to apply for this benefit.

Application Process

Contact a lender to discuss qualifying for the VA loan. The lender will make sure you meet basic program requirements, including the following:

The loan must be for the home you will live in.
The home must appraise for the loan amount or higher.
You must have enough income to meet your monthly mortgage payments, maintain the home, take care of other debts and obligations, and still have enough money left over to cover day to day expenses (food, gas, etc.)
You must also have a good credit history.

A lender is your best reference point to lead you through the loan pre-qualification process. They can, with your permission, pull a copy of your credit report and walk you through the report line by line. You may also wish to use the VA Home Loan website at http://homeloans.va.gov/veteran.htm as a reference point on how to use the program or for other more specific questions that you may have about the program.

If you are interested in obtaining an Adjustable Rate Mortgage (ARM) loan, please note that that the loans are being offered as a traditional 1 year ARM and also as hybrids with 3, 5, 7 and 10 year fixed rates, where available.

NOTE: If you plan to stay in your home for longer than the fixed rate period, an ARM may not be in your best interest.

It is a good idea to use a mortgage calculator to determine what the best loan, term and interest rate are for you and your family.

Program Contact Information

For more information on this program, please visit:
http://www.benefits.va.gov/homeloans/

There's also a handy fact sheet available at:
http://www.vba.va.gov/VBA/benefits/factsheets/#BM5

Please contact a Regional Loan Center if you have detailed questions:
http://www.homeloans.va.gov/RLCWEB.htm

Managing Agency

Veterans Benefits Administration (VBA)

http://www.vba.va.gov