VA loan guide
A VA home loan is made by a private lender, with part of it backed by the Department of Veterans Affairs through what's called entitlement. That backing is why many eligible borrowers can buy with no down payment and no monthly mortgage insurance. The process looks a lot like any mortgage, with a few VA steps added: your Certificate of Eligibility, a VA appraisal that checks the home against VA standards, and an underwriting review that includes VA's residual income guideline. You must plan to live in the home, and VA limits some of the costs you can be charged.
On paper, a VA loan looks a lot like any other mortgage. You apply, the lender checks your income and credit, the home gets appraised, and you close.
The differences are what make it special. Part of the loan is backed by the VA, which is why many veterans can buy with no down payment and no monthly mortgage insurance. In exchange, there are a few VA-specific steps and rules. This page walks through all of it.
ZYNG Mortgage isn't affiliated with the Department of Veterans Affairs. The VA runs the program and decides eligibility. Private lenders make the loans. As a broker, we help you find a lender and loan that fit.
Entitlement is the part of your loan the VA promises to back for the lender if the loan isn't repaid. It's the reason lenders are willing to offer VA terms.
If you've never used the benefit, or your past use was fully restored, you have full entitlement. For loans closed on or after January 1, 2020, there's no VA loan limit when you have full entitlement. That change came from the Blue Water Navy Vietnam Veterans Act of 2019. You still need to qualify for the payment, and lenders can set their own maximums.
If some of your entitlement is still tied up in an existing VA loan, or in a past VA loan that wasn't fully repaid, you have remaining entitlement. Then the county loan limit matters, and you may need a down payment on a larger loan.
When you sell and pay off a VA loan, your entitlement is generally restored. There's also a one-time restoration if you've paid the loan off but kept the home. If you sell to a buyer who assumes your VA loan, your entitlement generally stays tied to that loan unless the buyer is a veteran who substitutes their own.
The dollar amounts behind entitlement change, so your COE and your loan officer will show the numbers that apply to you.
Start with our VA eligibility check. Then your loan officer can request your Certificate of Eligibility, which is often quick when your records are on file. See VA Loan Eligibility.
Your loan officer reviews your income, assets, credit, and debts to see what you can comfortably afford. The VA doesn't set a minimum credit score, but lenders can set their own. With a pre-approval letter, you can shop with confidence. Start with See My Buying Power.
Work with a real estate agent who knows VA loans. A few things matter in the offer:
The lender orders the appraisal through the VA, which assigns an appraiser. The appraiser does two jobs:
If the appraiser thinks the value may come in below the price, VA's Tidewater process gives the lender and agent a chance to send in more sales before the value is final.
If repairs are required, they're usually completed before closing. Who pays is part of your negotiation with the seller.
The underwriter reviews your file under VA rules. Two tests stand out:
You sign your documents, the funding fee is paid or financed, and you get the keys. You'll get your Closing Disclosure at least three business days before closing, so you can compare it with your Loan Estimate.
A VA loan is for a home you'll live in. When you apply, you certify that you intend to occupy the home as your primary residence, generally within a reasonable time after closing, which the VA usually treats as 60 days.
There's flexibility for service members. If you're deployed or on orders, a spouse living in the home can generally satisfy the occupancy requirement. If you're buying ahead of a move, tell your loan officer early.
A VA loan can't be used to buy a pure investment property. You can, however, buy a home with up to four units if you live in one of them.
VA protects veterans from some fees.
There's no monthly mortgage insurance. Your payment covers principal, interest, property taxes, homeowners insurance, and any HOA dues.
A few VA features matter long after you move in:
Private lenders. The VA backs part of the loan and sets the rules, but it doesn't make most VA loans itself. The exception is the Native American Direct Loan, where the VA is the lender. See VA Loan Programs.
With full entitlement, there's no VA loan limit on loans closed since 2020, though you need to qualify and lenders may set their own maximums. With remaining entitlement, county limits matter.
For many eligible borrowers with full entitlement, no. A down payment can lower your funding fee.
The VA doesn't set one, but lenders usually do.
The money you have left each month after housing costs, debts, and living expenses. VA sets a minimum based on family size and region.
The home has to meet VA's minimum property requirements, so major problems usually need to be fixed before closing.
No. It has to be your primary residence, though a home with up to four units can work if you live in one.
Start with our VA eligibility check, then see your buying power or get a personalized quote. Read more in VA Loans, VA Loan Eligibility, and The VA Funding Fee, or call us at 530-888-6000.
ZYNG Mortgage, Inc., NMLS #76801. For information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval.
