The VA
Home Loan Guide.

01 / Understand the benefit.

A VA-backed purchase loan comes from a private lender. VA guarantees a portion of it. Qualifying borrowers may buy with no down payment, subject to lender requirements, entitlement, and appraised value. VA-backed loans don’t require monthly private mortgage insurance.

You don’t have to be a first-time buyer. Reuse of the benefit may be possible; review your circumstances with VA and a lender.

Source: VA purchase loan overview

02 / Start with your COE.

Your Certificate of Eligibility documents eligibility for the benefit. It does not replace a lender’s financial review. Your service history or qualifying surviving-spouse circumstances matter; being a military family member alone does not establish eligibility.

• Review VA’s eligibility rules.
• Gather documents for your situation. Veterans typically need a DD214; active-duty members need a statement of service.
• Request your COE through VA. A lender may also be able to help obtain it.

Sources: VA eligibility · How to request a COE

03 / Plan beyond the down payment.

Ask for a Loan Estimate. Review interest, lender fees, closing charges, and prepaid expenses. Seller credits may help when negotiated. For purchase loans, the VA funding fee may be financed; other closing charges generally must be paid at closing.

A funding fee may apply, and exemptions exist, including for qualifying disability-compensation recipients. Confirm your fee status with your lender.

• Set a comfortable payment budget, including taxes, insurance, and any HOA dues.
• Keep room for maintenance and an emergency reserve.
• Compare loan offers using the same assumptions.

Source: VA funding fee and closing costs

04 / Follow the homebuying roadmap.

1. Confirm your benefit eligibility and review finances.
2. Compare lenders and discuss preapproval.
3. Choose an agent; read representation terms and fees.
4. Shop within your plan and prepare an offer. Discuss the VA escape clause and appropriate contingencies.
5. Review the appraisal and arrange a separate home inspection.
6. Review your Closing Disclosure and ask questions before signing.

An appraisal addresses value and basic property requirements. An inspection gives a closer look at condition. They serve different purposes.

Source: VA homebuying process

05 / Bring useful questions.

Ask your lender

• What documents do you need, and can you help with my COE?
• What is my estimated full payment and cash to close?
• Does a funding fee apply to me?
• What conditions remain after preapproval?

Ask your real estate agent

• How do you handle VA offers in this market?
• What representation terms and fees should I understand?
• How will we plan for appraisal and inspection issues?
• What should we do first if I also need to sell a home?