Step-by-Step: How to Apply for a VA Loan

The dream of homeownership is a significant milestone for many Americans, and for veterans and military families, a VA loan can make this dream a reality. Understanding how to apply for a VA loan is crucial for those who have served our country and are ready to invest in a home.

What Is a VA Home Loan?

A VA home loan is a mortgage loan in the United States guaranteed by the Department of Veterans Affairs (VA). This program helps veterans, active-duty service members, and their surviving spouses buy homes. The VA loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit.

Who Can Apply for a VA Loan?

Eligibility for a VA loan is based on military service. Veterans, active duty service members, National Guard members, and certain surviving spouses are eligible to apply for a VA home loan.

Steps to Apply for a VA Loan

1. Obtain a Certificate of Eligibility (COE)

To begin the process of applying for a VA loan, you need a Certificate of Eligibility (COE). This document verifies to lenders that you meet the eligibility requirements for a VA-backed loan. You can apply for a COE through the VA’s eBenefits portal.

2. Choose a VA-Approved Lender

Not all lenders offer VA loans. It’s essential to choose a lender who is experienced with the VA process. You can find a list of some of the best approved lenders here.

3. Prequalify for Your Loan

Prequalification involves providing your financial information to your lender to get an estimate of how much you might be able to borrow. This step is crucial in understanding your budget and the price range of homes you can afford.

4. Find Your Home

Once you have an idea of your budget, you can start house hunting. This is where you get to visualize your dream and select a home that meets your needs.

5. Submit a Full Application and Provide Documentation

After you’ve found a home and have an accepted offer, you’ll complete a full application with your lender. This will include submitting financial documents like pay stubs, tax returns, and bank statements.

6. VA Appraisal and Underwriting

Once your loan application is submitted, the VA requires a home appraisal. Additionally, your lender will start the underwriting process to approve your loan.

7. Closing

The final step is the closing, where you’ll sign all the paperwork, pay any closing costs, and take ownership of your new home.

Why Choose a VA Loan?

  • No Down Payment: One of the most notable benefits is that VA loans often don’t require a down payment.
  • No Private Mortgage Insurance (PMI): VA loans don’t require PMI, a monthly expense that conventional borrowers must pay if they put down less than 20%.
  • Competitive Interest Rates: VA loans typically have lower interest rates than conventional loans.

Getting Started

If you’re a veteran or active military member considering homeownership, visit National Veterans Homeless Support for more information. You can also further explore resources for veterans, learn about the dangers of homelessness for veterans, and discover VA programs for independent and supported living, as well as VA housing programs.

Applying for a VA loan is a tangible expression of gratitude from a nation to its warriors. By understanding and following these steps, eligible veterans can transition into homeownership with the support they have rightfully earned.

National Veterans Homeless Support seeks to eliminate homelessness among veterans in Central Florida and nationwide. NVHS takes a proactive, intervention-based approach to homelessness by meeting homeless veterans where they are and helping them from there. Through programs like Search and Rescue Outreach, NVHS helps homeless veterans get the supplies they need to survive, connects them with support and resources, and helps them transition off the streets and into temporary or permanent housing. Some of our programs also include art therapy to help veterans heal. If you’re able, consider supporting our mission by donating or signing on as a volunteer.