VA Loan Frequently Asked Questions

Who is eligible for a VA loan?

VA loans are available to:

• Veterans who meet minimum service requirements
• Active duty service members with 90+ continuous days of service
• National Guard and Reserve members with 6 years of service
• Surviving spouses of veterans who died in service or from service-connected disabilities

What credit score do I need?

The VA doesn't set a minimum credit score, but most lenders require a score of at least 620. Some may accept lower scores. VA loans are generally more flexible with credit requirements than conventional loans.

What are the income requirements?

While there's no specific income threshold, you must have stable, reliable income sufficient to make monthly payments. Lenders typically look for a debt-to-income ratio of 41% or less, though exceptions can be made.

Can I get a VA loan with bad credit or bankruptcy?

Yes, it's possible. You typically need to wait 2 years after a Chapter 7 bankruptcy or 1 year after a Chapter 13 bankruptcy with satisfactory payments. The VA is generally more forgiving than conventional loans regarding past credit issues.

What is the VA funding fee?

The VA funding fee is a one-time payment that helps sustain the VA loan program. The fee varies based on:

• Type of service (Regular Military, Reserves, or National Guard)
• Down payment amount
• First-time or subsequent use
• Type of loan (purchase, refinance, etc.)

Many veterans with service-connected disabilities are exempt from this fee.

What closing costs should I expect?

While VA loans limit certain closing costs, you may still need to pay for:

• Appraisal fees
• Credit report
• Title insurance
• Recording fees
• Survey fees

The seller can pay all of your closing costs and concessions up to 4% of the loan amount.

Do I need a down payment?

No down payment is required for VA loans up to the conforming loan limit. For loans above this limit, you'll need to make a down payment of 25% of the excess amount. Making a down payment can reduce your VA funding fee.

How do I get my Certificate of Eligibility (COE)?

You can obtain your COE in three ways:
• Online through the VA eBenefits portal
• Through your VA-approved lender
• By mail using VA Form 26-1880

How long does the VA loan process take?

The VA loan process typically takes 30-45 days from contract to closing, similar to conventional loans. The timeline can vary based on your lender, market conditions, and how quickly you provide required documentation.

What documents do I need?

Common required documents include:

• Certificate of Eligibility (COE)
• DD-214 (for veterans)
• Recent pay stubs
• W-2s and tax returns
• Bank statements
• Photo ID

Can I use my VA loan benefit multiple times?

Yes, you can reuse your VA loan benefit multiple times. You'll need to either:

• Sell the home and pay off the VA loan in full
• Have another veteran assume your VA loan
• Pay off the VA loan but keep the home (one-time restoration)