The Complete Guide to VA Home Loans

Home / Blog / The Complete Guide to VA Home Loans

The Complete Guide to VA Home Loans

The VA home loan program has a long and successful history of helping United States veterans find and purchase homes. If you’re a veteran living in California, the VA Home Loan Program can help you with finding a loan, learning about VA loan guidelines, and purchasing the home that meets your needs, now and for the future.

A Brief Background of the VA Home Loan Program

The VA Home Loan Program was founded in 1944 as part of the Servicemen’s Readjustment Act, better known as the GI Bill. It was intended to make it easier for veterans or their surviving spouses to secure the funding needed to purchase a home. Additional legislation passed over the years expanded the scope of the VA Home Loan Program and erased some VA loan restrictions, such as terminating application dates, allowing loans to cover mobile homes, and expanding benefits to cover Reserve and National Guard personnel, according to an article by Clayton Closson on the website Military.com.

The Purpose of a VA Home Loan

VA home loans are mortgage loans made to U.S. military veterans. The loans are guaranteed by the U.S. Department of Veterans Affairs, commonly known as the VA. The program, as defined in the VA Home Loans section of the U.S. Department of Veterans Affairs website, helps active duty service members, veterans, and eligible surviving spouses purchase, build, repair, retain, or adapt a home for personal occupancy.

VA loans are made by private lending institutions, such as banks or mortgage companies. Portions of the loans are guaranteed by the VA, which allows banks greater freedom in making loan decisions. The main advantage to borrowers who use the VA loan program is the lack of requirement for a down payment. In addition, borrowers can have the seller pay all closing costs. Keep in mind, however, that there is a VA funding fee that can add costs to the loan.

Types of VA Loans

There are four main types of VA Home Loans.

  1. Purchase loans: These types of loans give veterans the opportunity to purchase homes without a down payment. Since the initial investment is often the biggest obstacle to home ownership, the option to buy without a down payment makes VA loans one of the best options for veterans. Purchase loans can also be made at a more favorable competitive interest rate. In this same category are cash out refinance loans that allow homeowners to take cash out of their home equity for purposes such as paying off outstanding debts, financing education, or making home repairs or improvements.
  2. Interest Rate Reduction Refinance Loans (IRRRL): These are sometimes referred to as Streamline Refinance Loans. Their main benefit is that they allow homeowners to secure a lower interest rate by refinancing an existing VA loan.
  3. Native American Direct Loans (NADL): These loans help eligible Native American veterans pay for the purchase, construction, or improvement of homes that exist on Federal Trust Land. These types of loans can also be used to reduce the interest rate on a current VA loan.
  4. Adapted Housing Grants: These are available for veterans with permanent and total service-connected disabilities. They help veterans buy or build an adapted home or modify an existing home to accommodate their disability. For example, they could be used to buy a home that has been adapted for a person with mobility limitations, or for adding features such as wheelchair ramps or indoor lifts. VA loan restrictions apply to the type and extent of disability required to qualify for this type of financial assistance.

Basic Requirements for VA Home Loans

  • Qualifications: Keep in mind that VA loan conditions may apply when you are looking for a home loan. For example, the type of loan you qualify for may be affected by the length of time spent in service or the current length of a service commitment The character of your military service (that is, whether you served honorably) and your duty status may also influence loan availability.
  • Certificate of Eligibility (COE): Some VA loan programs require that the lender possess a Certificate of Eligibility. The COE certifies to a lender that you are eligible for a VA-guaranteed loan. Certain documentation, such as a valid DD 214 form or a current statement of service, will be required for a COE.
  • Credit and income: Many loans, particularly purchase loans and cash-out refinance loans, require a satisfactory credit rating to qualify for the loan and proof of sufficient income to make ongoing mortgage payments.

If you’re a qualified veteran in search of a home loan, let Übermortage help you locate the mortgage that best fits your needs. Contact us today to speak with a loan officer or for more details on the types of VA home loans and VA loan guidelines that apply to your situation.


578c0633 3421 4dfe 9ecf bb8f41b4ae73 42557ce2 7fb5 43d8 bd0f 4c4361718048 517d0e49 a7f9 4e87 a490 1e1965bcfd0f e3ef216a a531 4b35 a20b 9690be355957 a2ee574b 3739 419f 83ca 7f0babe0bef9 d2892e9a 7b36 46cb bc42 0ad53ae30afb d3c392bd 8783 4b1e 9579 9e9a46376acf 036f3fd0 7f14 4492 bf19 7bec93852a9b 65cdb5f9 ef3b 4e24 9190 c779791f8c29 d9a26913 6f5f 4c50 95b0 6c910db7676e c6507a6e 428f 4d9c b9d8 ac8f9c8baac9 e4fbd33b 3292 4795 bc5d 8937f6032458 74e75d90 a030 469a 87e4 82261883fa23 694a2f36 4058 48f3 a55e 320e1049cb15 1ff79dde aeab 4033 babe e06e8baf17c2 06d7fe4b 74a3 4d3f 96d4 376113b424f4 f36bd7d1 1dc6 4216 b16e 659fab7d6ce2 b0424e36 1837 4b91 a89b 90b439e64e93 c1efce36 1888 4f16 b3af e6f1bd0be27a 2bb92c50 9384 479d ac54 da48cd866fef 48a63682 927b 4625 8476 106ed3bd7b51 5ad41a36 c7fa 466a 9f85 4df9d84690ef cd107ad9 320d 4b9a bbcc 64dec38095e5