VA LOANS

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VA Loan Overview

A VA Loan is a government-backed mortgage for active-duty military, Veterans, reservists, National Guard members, and eligible surviving spouses. Major benefits include no down payment, no mortgage insurance, flexible underwriting, streamlined refinances, and often below-market interest rates. Purchases, (IRRL) Interest Rate Reduction or Traditional Refinance

Eligibility 

• Must be active-duty, Veteran, reservist, National Guard, or an eligible surviving spouse 
• Provide a Certificate of Eligibility (COE) 
• Home must be a primary residence and meet HUD/VA guidelines 
• Loan must meet FHFA conforming limits

Credit Score

• VA sets no minimum credit score, but lenders may require their own minimums. 

Down Payment

• No down payment required with 100% financing, as long as the home appraises at or above the purchase price. 

Debt- to-Income  (DTI) 

• Target DTI: 41% or lower, though higher may be approved. 
• Example: $2,300 monthly debt ÷ $6,000 income = 38% DTI

Eligible Properties 

• 1–4 unit primary residences 
• VA-approved condos/townhomes 
• Manufactured homes on a permanent foundation (must include the land) 
• Cannot be used to purchase land alone; can finance new construction
• Property must pass a VA appraisal and meet Minimum Property Requirements (MPRs)

VA Funding Fee 

• One-time fee of 1.25% to 3.3%, typically rolled into the loan 
• Exemptions for Veterans with service-connected disability compensation, Purple Heart recipients, and other qualifying categories

How to Apply

 Provide:

• Certificate of Eligibility (COE) 
• Income/employment documents (W-2s, pay stubs, tax returns)
• Bank/asset statements