VA Loan Questions and Answers from Veteran Loan Center

VA Loan Questions and Answers from Veteran Loan Center

If you have specific question that isn’t listed below, don’t hesitate to contact us. Give us a call at 888-258-6879 or complete our online questionnaire to find out more.

Are you the VA or a branch of the VA?

No, we are not the Department of Veterans Affairs. Rather than lend money, the VA basically insure loans made by private lenders. We are a mortgage company that specializes in VA-backed home loans.

Top Loan Mortgage -What is a COE? Where can I get it?

COE stands for Certificate of Eligibility. It is the certificate that proves that you as the veteran are eligible for a VA guaranteed home loan. Veteran Loan Center can get these for you during the loan process.

Top Loan Mortgage -Why use my VA home loan benefit?

The VA loan is a program set up to help active duty and retired military personnel into homes. They will give you 100% financing on a home without having to pay mortgage insurance at a very competitive rate. The VA also limits the types of fees that can be charged protecting against predatory lending.

Top Loan Mortgage -How do interest rates fluctuate?

Interest rates can change daily, sometimes even a couple times in the same day. Rates are based on a host of economic and market factors, and they are not set by the government. Lenders can and will quote their own rates.

Top Loan Mortgage -What is a funding fee? Do I have to pay for this?

The VA Funding Fee is a fee added to your loan that goes to the Department of Veterans Affairs. For your first time use of a VA loan, your funding fee is typically 2.3% of your loan amount. For each subsequent use it is 3.6%. Borrowers receiving compensation for a service-connected disability do not have to pay this fee.

Top Loan Mortgage -What do I need to get qualified? Am I eligible?

You don’t need to know if you meet VA and lender guidelines to get started. Our loan teams will help assess your eligibility after a brief conversation about your service history, your credit and finances, and your homebuying goals.

Top Loan Mortgage -What are the benefits of a VA loan?

The VA loan offers 100% financing with no mortgage insurance. The loan is assumable and you may be eligible for a streamline refinance if rates go down. It offers great rates and is less strict on credit than most conventional loans.

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Top Loan Mortgage -Can I get an interest only loan?

The VA loan does not offer an interest only option at this time. We do have access to interest only conventional programs and would be happy to put you into one of these programs.

Top Loan Mortgage -May I purchase land with the VA?

No, the VA loan is designed for existing home purchases or new construction. They are unable to do land loans at this time.

Top Loan Mortgage -May I use my VA eligibility more than once?

Yes, this is a lifetime benefit you can use over and over again. It’s even possible to have multiple VA loans at the same time in some cases.

Top Loan Mortgage -What is the fee for a 2nd time use of a VA loan?

The subsequent-use funding fee is currently 3.6%. Putting money down when purchasing a home can lower your funding fee.

Top Loan Mortgage -Does it matter what your credit score is with the VA?

The VA does not have a credit score requirement, but the government does not make these loans. The lenders that make VA loans will often have a minimum credit score requirement that prospective borrowers must meet. Those minimums can vary by lender and other factors.

Top Loan Mortgage -May I use my grandfather/father VA eligibility for myself?

No, only the veteran themselves or the surviving spouse of a veteran killed during active duty is eligible for the VA benefits.

Top Loan Mortgage -May I use a co-borrower to help get approved?

Yes, this may be possible. A spouse is the most common co-borrower, but other combinations are possible. Everyone on the loan would need to meet VA and lender guidelines and intend to occupy the home as their primary residence.

Top Loan Mortgage -May I use my spouse as a cosigner so that I can get a larger VA Home Loan?

You may use your spouse to qualify. However, if a spouse’s income is used, their liabilities must be included as well.

Top Loan Mortgage -May I use a VA loan to start a business?

The VA loan is meant for purchasing primary residences and is not a business loan.

Top Loan Mortgage -May I get two VA loans at once?

You may be able to have two VA loans if you have entitlement available. The best way to determine your entitlement and eligibility is to contact one of our VA Loan Experts.

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Top Loan Mortgage -Does it cost anything to get prequalified?

No, it does not. Our professional loan specialists take great pride in helping veterans and military personnel get into homes.

Top Loan Mortgage -What is the difference between a VA loan and a conventional loan?

VA Loans are guaranteed by the Department of Veterans Affairs and allow for no money down and easier qualification most of the time. Conventional loans often require at least 5% down and monthly private mortgage insurance.

Top Loan Mortgage -Are the VA rates the same as conventional rates (better/worse)?

Rates on all loan products can vary by lender, loan type and other factors. Generally, fixed VA loan rates are typically lower on average than rates for fixed conventional loans.

Top Loan Mortgage -Does my credit score affect my rate?

The VA does not set credit score requirements, individual loan rates or even make the loans. But lenders that make VA loans typically require a minimum credit score, and your credit score can impact the rate you get quoted. Policies and guidelines can vary by lender, loan type and other factors. Credit score may have more of an impact on conventional mortgage rates than on government-backed loans.

Top Loan Mortgage -May I get a VA loan with having a bankruptcy? How long must I wait after filing?

Yes. You typically must be at least one year removed from filing a Chapter 13 bankruptcy and 2 years removed from the discharge of a Chapter 7 bankruptcy. Policies and guidelines can vary.

Top Loan Mortgage -I have bad credit, is a VA Loan still guaranteed to me?

Being eligible for a VA loan and being guaranteed to get one are two different things. Borrowers will need to meet a lender’s credit score requirement in order to move forward.

Top Loan Mortgage -Can I have a friend on the loan with me?

Depends on the type of loan you want and if it is conventional or FHA. VA loans will only allow a spouse to co-sign on a VA home loan.

Top Loan Mortgage -Does my veteran home loan entitlement expire?

Your entitlement never expires. However, your COE may need to be renewed if it is older than 12 months.

Top Loan Mortgage -How much can I borrow with my VA Home Loan?

Qualified buyers can borrow as much as a lender is willing to lend them, provided they can afford the loan and meet all VA and lender requirements. The VA does not set a maximum loan amount, but lenders may have their own.

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Top Loan Mortgage -May I use a VA Loan to invest in real estate?

At this time you can only use the VA loan for a home that you intend on living in as your primary residence.

Top Loan Mortgage -Are VA guaranteed loans, loans from the government?

The Veterans Administration does not give you the loan directly. They insure the loans that we originate for you, allowing you to get 100% of the appraised value of the home you are purchasing.

Top Loan Mortgage -How do I find out how much I can afford?

The best way to find out how much you can afford is to call 800-814-1103 and talk to a specialist.

Top Loan Mortgage -If I get a VA Home Loan that has an Adjustable Rate, what does that mean?

There are two primary rate options – a fixed rate or an adjustable rate. With adjustable rates, borrowers will typically have a lower introductory interest rate for a certain time period, after which the rate can go up or down depending on what’s happening in the market and other factors.

Top Loan Mortgage -Do I need to put money down in order to purchase a house with my VA Loan?

Qualified buyers can purchase a home without a down payment. But buyers may need money to cover other upfront costs, such as an earnest money deposit, the appraisal, a home inspection and closing costs. The VA allows sellers to pay for all a buyer’s loan-related closing costs and up to 4 percent in concessions, which can cover prepaid expenses and more.

Top Loan Mortgage -May I use my Veteran loan benefit to purchase a vacation home?

No, your VA loan has to be your primary residence.

Top Loan Mortgage -I am currently active in the armed forces; may I still receive a VA home loan?

Yes, this benefit is open to qualified active duty service members as well as to Veterans.

Top Loan Mortgage -My realtor has suggested that VA appraisers are bad. Is this true?

No. The VA appraiser is out to protect the buyer. It is a government backed loan and they need to make sure the home meets specific safety and quality guidelines.