Understanding VA Home Loan Requirements
The United States Department of Veterans Affairs (VA) guarantees loans made by qualified lenders, such as the Navy Federal Credit Union, for the benefit of military personnel, veterans and their families. Meeting VA home loan requirements can help you buy, build, or renovate your home without a down payment. Because the VA backs a portion of each loan in its VA home loan guarantee program, lenders can offer more favorable terms for new home purchases and refinancing.
Your path to buying a home with a VA loan:
The process can be very simple to acquire a VA loan. Take a look at the steps below, determine if you meet VA home loan requirements, and find answers to questions you might have along the way.
- Be pre-qualified for a loan. Receive prequalification and begin the home buying process.
- Obtain a Certificate of Eligibility (COE). This VA certificate confirms your military service and verifies that you meet the VA home loan requirements and that you are eligible to receive a loan guaranteed by the VA. Your lender can determine your eligibility and get an COE for you. You can also apply online to the VA for this document.
- Buy a house. Work with a trusted real estate agent to find a home that meets your needs and fits your budget.
- Sign a home purchase contract. Make sure that the purchase contract drawn up by your real estate agent includes a VA option clause. This clause states that you are not legally bound to purchase a home if the VA appraisal amount is less than the seller’s asking price.
- Get a VA assessment. A certified VA appraiser determines the fair market value of the home and looks for any repairs clearly needed to ensure that the property meets VA’s minimum property requirements (MPR).
- Have the house inspected. Hire a professional home inspector to check the home’s structure for faults and to inspect items like electrical wiring, plumbing, and heating and cooling systems.
- Sign the closing documents. After the house closes, it’s official! Congratulations on your new home.
Click here to learn more about VA loan options from the Navy Federal Credit Union to see if you qualify to purchase a home without a down payment.
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