VA loans
A home loan benefit earned through service
Your service deserves to be honored. A VA home loan can help eligible Veterans, active-duty service members, National Guard, and Reserve members, and qualifying surviving spouses purchase or refinance a home with flexible financing and valuable benefits.
FVSBank is here to help you understand your options, confirm the next steps, and move forward with confidence.
Make your VA home loan benefit work for you
VA-backed home loans are offered through approved private lenders. The Department of Veterans Affairs guarantees a portion of the loan, allowing FVSBank to offer qualified borrowers favorable financing terms.
VA loan benefits may include:
- No down payment required in many situations
- No private mortgage insurance (PMI)
- Competitive interest rates
- Limited closing costs
- Fixed-rate and adjustable-rate loan options
- Purchase and refinancing options
- A reusable benefit that may be used more than once
- No penalty for paying the loan off early
A down payment may still be required in certain circumstances, including when the purchase price exceeds the property’s appraised value or the borrower has limited remaining VA entitlement.
Who may qualify for a VA loan?
You may be eligible for VA home loan benefits if you are:
A Veteran who meets applicable service requirements
An active-duty service member
An eligible National Guard or Reserve member
A qualifying surviving spouse
Eligibility is based on factors such as your service history, duty status, and character of service. You will generally need a valid Certificate of Eligibility, commonly called a COE, to verify that you qualify for the VA home loan benefit.
Additional lending requirements
Receiving a Certificate of Eligibility does not automatically guarantee loan approval. Borrowers must also meet applicable lender and VA requirements, which may include:
- Satisfactory credit history
- Stable and sufficient income
- An acceptable debt-to-income position
- Ability to manage the proposed housing payment and other obligations
- Use of the home as a primary residence
- A property that meets VA appraisal and minimum property requirements
VA loan options
Purchase a home
A VA purchase loan may help eligible borrowers buy a primary residence without a down payment or monthly private mortgage insurance. The home must meet VA property standards and be approved through the appraisal process.
Refinance your mortgage
Depending on your current loan and financial goals, a VA refinancing option may help you:
- Replace an exiting mortgage
- Access available home equity
- Adjust your loan term
- Potentially obtain a different interest rate or monthly payment
Refinancing involves closing costs, qualification requirements and a review of whether the new loan provides an appropriate financial benefit.
VA Interest Rate Reduction Refinance Loan
Homeowners who already have a VA-backed mortgage may be eligible for an Interest Rate Reduction Refinance Loan (IRRRL). This option is sometimes called a VA streamline refinance and is generally used to refinance one VA loan into another VA loan.
Understanding the VA funding fee
Many VA borrowers pay a one-time VA funding fee. The amount can depend on:
- The type of VA loan
- Whether you have used the benefit before
- The amount of your down payment
- The total loan amount
Some borrowers, including certain Veterans receiving compensation for a service-connected disability and certain qualifying surviving spouses, may be exempt from the funding fee. When required, the fee may generally be paid at closing or financed into the loan, subject to program requirements.
Your FVSBank lender will explain the fees and estimated closing costs associated with your specific loan.
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Frequently Asked Questions
Does a VA loan always require no down payment?
The VA generally does not require a down payment. However, a lender may require one in certain situations, such as when the borrower has limited remaining entitlement or the purchase price is higher than the property’s appraised value.
Do VA loans require mortgage insurance?
VA-backed loans generally do not require monthly private mortgage insurance. A one-time VA funding fee may apply unless the borrower qualifies for an exemption.
Does the VA require a minimum credit score?
The Department of Veterans Affairs does not set a universal minimum credit score. Lenders may establish their own credit requirements based on the loan program and underwriting guidelines.
What is a Certificate of Eligibility?
A Certificate of Eligibility verifies that your military service or qualifying surviving-spouse status meets the service-related requirements for the VA home loan benefit. It does not guarantee loan approval.
Can I use a VA loan more than once?
Yes. The VA home loan benefit may be reusable. Your available entitlement and whether a previous VA loan has been paid off can affect your options.
Can I use a VA loan for an investment property or vacation home?
VA purchase loans are generally intended for a home that the eligible borrower will occupy as a primary residence.
Can a surviving spouse qualify?
Certain surviving spouses may qualify. Eligibility depends on VA requirements and the borrower’s individual circumstances.
Can I refinance a non-VA mortgage into a VA loan?
Eligible borrowers may be able to refinance a non-VA mortgage using a VA-backed cash-out refinance loan, subject to credit, income, occupancy, appraisal, and other requirements.
Are VA interest rates always lower?
VA loans may offer competitive rates, but the actual rate depends on market conditions, the lender, loan type, credit qualifications, and other factors. Rates are not guaranteed to be lower than every other mortgage option.
Let’s explore your VA home loan options
You served our country. Let our local mortgage team help you understand the home financing benefits you may have earned.
Whether you are purchasing your first home, moving into your next home, or refinancing your current mortgage, FVSBank will provide personal guidance from application through closing.
Additional FVSBank Mortgage Resources
Legal stuff:
All loans are subject to credit approval, underwriting guidelines, property eligibility, and applicable VA and FVSBank requirements. VA loan eligibility does not guarantee loan approval. Loan programs, rates, terms, fees and requirements are subject to change without notice. A VA funding fee may apply. Some borrowers may qualify for a funding-fee exemption. FVSBank is not acting on behalf of, or endorsed by, the U.S. Department of Veterans Affairs or any other government agency. Please consult an FVSBank mortgage lender for current product availability and complete terms.