Frequently Asked VA Questions

How do I apply for a VA guaranteed loan?
You can apply for a VA home loan at any mortgage company that participates in the VA home loan program.  For example, if you are buying a home in Minnesota, Wisconsin, or Florida you can call us for more information on qualifying or apply online.

Is VA financing complicated?
Years ago, VA financing was more complicated than conventional financing.  However changes over the years have streamlined the VA home loan process and in many cases, VA home loans are easier than conventional financing.

How do I get a Certificate of Eligibility?
As a top VA lender, if you do your VA loan with us, we can get it for you at application. No need to worry.
Otherwise, you can visit the section on VA Certificate of Eligibility by clicking here.

I have already received one VA home loan.  Can I get another one?
Yes, depending on the circumstances.  If you have paid off your prior VA home loan and disposed of the property, you can have your entitlement restored for additional use.

I have sold the property I obtained with my prior VA home loan on assumption.  Why can't I get my entitlement restored to purchase a new home?
In this case your entitlement can only be restored if the assumer is also an eligible veteran who is willing to substitute his or her entitlement for that of your original entitlement.  Otherwise you cannot have your entitlement restored until the assumer has paid off the VA home loan.

What can a veteran do who has lost his or her original discharge papers and does not have a legible copy?
The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA Veterans Benefits Counselor at the nearest VA office will assist a veteran in obtaining necessary proof of military service.

Does a veteran's home loan entitlement expire?
No. Home loan entitlement is generally good until used. However, the eligibility of service personnel is only available so long as they remain on active duty. If they are discharged or released from active duty before using their entitlement, a new determination of their eligibility must be made, based on the length of service and the type of discharge received. 

Does VA home loan entitlement provide cash to the veteran?
No. The amount of entitlement relates only to the amount VA will guarantee the lender against loss.

Can a veteran get used entitlement back to use again?
If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for "restoration" are met:

• The property has been sold and the loan has been paid in full, or
• A qualified veteran-transferee (buyer) must agree to assume the outstanding balance on the loan and agree to "substitute" his or her entitlement for the same amount of entitlement you originally used to get the loan. The buyer must also meet the occupancy and income and credit requirements of the law.
• ONE TIME ONLY if you have repaid the prior VA home loan in full, but have not disposed of the property securing that loan, the entitlement you used in connection with that loan may be restored.

Restoration of entitlement is not automatic. You must apply for it by completing and returning VA Form 26-1880 to any VA regional office or center. Application forms for substitution of entitlement may he requested from the VA office that guaranteed the loan.

If the requirements for restoration cannot be met, is there any other way a veteran can obtain another VA home loan?
Yes. Veterans who had a VA home loan before may still have "remaining entitlement" to use for another VA home loan. The current amount of entitlement available to each eligible veteran is $36,000 ($50,750) for certain loans over $144,000). This was much lower in years past and has been increased over time by changes in the law. For example, a veteran who obtained a $25,000 loan in 1974 would have used $12,500 guaranty entitlement, the maximum then available. Even if that loan is not paid off, the veteran could use the $23,500 difference between the $12,500 entitlement originally used and the current maximum of $36,000 to buy another home with VA financing.

Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less. Thus, in the example, the veteran's $23,500 remaining entitlement would probably meet a lender's minimum guaranty requirement for a no down payment loan to buy a property valued at, and selling for, $94,000. The veteran could also combine a down payment with the remaining entitlement for a larger loan amount.

If both a husband and wife are eligible, may they acquire property jointly and so increase the amount which may be guaranteed?
They may acquire property jointly, but the amount of guaranty on the loan may no exceed the lesser of 40 percent of the loan amount or $36,000 ($50,750 for certain loans over $144,000).

Does the issuance of a certificate of eligibility guarantee approval of a VA home loan?
No. The veteran must still be found to be qualified for the loan from an income and credit standpoint.

Is $36,000 the biggest loan a veteran can get?
No. You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required. To determine the reasonable value, VA requires an appraisal of the property.

What is the maximum VA home loan?
Although there is no maximum VA home loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum VA home loan to $203,000 because most VA home loans are sold in the secondary market, which limits VA home loans to that amount.

Is a guaranteed loan a gift?
No. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments you agreed to make, you may lose your home through foreclosure, and you and your family would probably lose all the time and money you had invested in it.  If the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you. If your loan closed on or after January 1, 1990, you will owe the Government in the event of a default only if there was fraud, misrepresentation, or bad faith on your part.

Can a veteran get a VA home loan to pay off the mortgage or other liens of record on his or her home?
Yes. The following refinancing loans are available under the VA guaranteed home loan program:

a. To pay off the mortgage and/or other liens of record on the home. In most cases, the loan may not exceed 90 percent of the reasonable value of the property as determined by an appraisal, plus the funding fee, if required. The loan may include funds for any purpose which is acceptable to the lender, plus closing costs, including a reasonable number of discount points. A veteran must have available home loan entitlement. An existing loan on a manufactured home (except as noted below) may not be refinanced with a VA guaranteed loan.

b. To refinance an existing VA home loan to obtain a lower interest rate. Use of additional loan entitlement is not required. The loan amount is limited to the balance of the old loan plus the closing costs, discount points, funding fee, and up to $6,000 in energy efficient improvements. An existing VA home loan on a manufactured home may be refinanced to obtain a lower interest rate.

Can a veteran get a VA home loan to buy or construct a residential property containing more than one family unit?
Yes, but the total number of separate units cannot be more than four if one veteran is buying. If more than one veteran is buying, then one additional family unit may be added to the basic four for each veteran participating; thus, one veteran could buy four units; two veterans, six units; three veterans, seven units, etc.

In addition, if the veteran must depend on rental income from the property to qualify for the loan, the veteran must (a) show that he or she has the background or qualifications to be successful as a landlord, and (b) have enough cash reserves to make the loan payments for at least 6 months without help from the rental income.

Can a veteran obtain a VA home loan for the purchase of property in a foreign country?
No. The property must be located in the United States, its territories, or possessions. The latter consist of Puerto Rico, Guam, Virgin Islands, American Samoa and Northern Mariana Islands.

May a veteran pay off a VA home loan before it becomes due?
Yes. A VA home loan may be partially or fully paid at any time without penalty. Partial payments may not be less than I monthly installment or $100, whichever is less. (Consult your lender.)

If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?
No. The surviving spouse or other co borrower must continue to make the payments. If there is no co borrower, the loan becomes the obligation of the veteran's estate. Protection against this may be obtained through mortgage life insurance, which must be purchased from private insurance sources