VA Home Loan Guarantee
A VA benefit allowing eligible veterans, active duty service members, and surviving spouses to purchase a home with no down payment, no private mortgage insurance (PMI), and competitive interest rates, backed by a VA guaranty to the lender.
Eligibility is established through a Certificate of Eligibility (COE), available via VA.gov or your lender.
No down payment required for loans up to the conforming loan limit in most counties.
VA Funding Fee: a one-time fee (1.4%-3.6% of loan amount) paid at closing -- waived entirely for veterans with a 10%+ service-connected disability rating.
The benefit can be used multiple times and for refinancing (IRRRL -- Interest Rate Reduction Refinance Loan).
-> Veterans with a service-connected disability are exempt from the funding fee -- saving thousands at closing.
Related terms
- DD-214
The official document issued to veterans upon separation or discharge from active military service, summarizing their service history, character of discharge, awards, and training.
- SAH Grant
A VA grant program for veterans with certain severe service-connected disabilities that funds modifications to their home or help purchasing/building an adapted home.
- VA Disability Compensation
Tax-free monthly payments made by the VA to veterans who have a service-connected disability . a physical or mental condition incurred or aggravated during active military service.
Take the next step
Frequently asked questions about VA Home Loan Guarantee
What is a VA Home Loan Guarantee?+
A VA Home Loan Guarantee helps veterans, service members, and some surviving spouses buy a home. It means the VA promises to cover part of the loan if you can't pay it back. This helps you get a home loan with no down payment and good interest rates.
Who can get a VA Home Loan Guarantee?+
Most veterans, people currently serving in the military, and certain surviving spouses can get a VA Home Loan Guarantee. You usually need to meet specific service requirements. The VA looks at how long you served and under what conditions to see if you are eligible.
How do I apply for a VA Home Loan Guarantee?+
To apply for a VA Home Loan Guarantee, you first need a Certificate of Eligibility (COE) from the VA. This shows you're able to get the benefit. Then, you work with a lender who offers VA loans to complete your home loan application. They will guide you through the process.
What are the benefits of a VA Home Loan?+
VA Home Loans offer several good benefits. You don't usually need to make a down payment. You also won't have to pay private mortgage insurance, which saves you money each month. Plus, they often have lower interest rates compared to other home loans.