About VA Home Loans

by HomeLoan.com

Veterans of the United States Armed services are eligible to receive loan money to buy a home with a VA loan. As long as you have served in the United Sates armed services during war time or peace time, you qualify to receive the loan. One of the best benefits about VA home loans is that the Government guarantees a portion of the loan even if you are unable to repay it for some reason.


First, you must show proof of military service. You'll also need to complete a request for a Certificate of Eligibility. Once you receive your certificate of Eligibility, a lender will review your credit score and review your ability to repay the loan, just as he would if you were applying for a conventional loan. You can usually apply for your Certificate of Eligibility through your lender.

Benefits/Potential Drawbacks

One of the biggest benefits that come with a VA loan is that they require no down payment and no private mortgage insurance (PMI) payments like traditional loans. These payments can average around 68 dollars a month over a three to five year period. Not having to make these payments can save you quite a bit. One problem that used to come up in the past is that some lenders were reluctant to handle VA loans because were known for being slow to process, but that hasn't really been a problem in recent years. Another issue is the fact that the buyer cannot offer to pay certain closing costs which could affect negotiating a lower selling price since the seller is responsible. Otherwise you can expect the same loan process as with a traditional loan.


You can use a VA loan to buy a house, condo or townhouse to use a primary residence. You can also use it to build a home, and to refinance or make qualified home improvements on your home.

Loan Amount

The government doesn't cap the amount of money you can borrow with a VA Loan. Unfortunately, because lenders are offering these loans through a secondary market with a $240,000 cap, it can be difficult to borrow more than that. If you need more than $240,000, you might be better of applying for a conventional loan.


Just as with any other traditional loan, VA loans are subject to the same lending terms. That means they will review your credit status and income to determine eligibility.

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