How to Apply for a VA Loan

Veterans Affairs (VA) home loans offer an affordable path to homeownership for our country’s dedicated servicemembers. But how exactly do you apply for one and take advantage of your VA benefits?

In this article, we will detail the steps involved in applying for your VA home loan. That way, you will know which documents you need, what to expect, and how to be ready to tackle the homebuying process with confidence.

VA loan requirements

Before you start gathering your documents to apply for a VA home loan, it is important to understand the general borrower guidelines for VA loan eligibility. The requirements will vary based on whether you are a veteran, on active duty, or if you serve or have served in the National Guard or Reserve.

Here are a few basic guidelines to be aware of:

• Veterans who served after August 2, 1990 are eligible if they served for 24 continuous months.

• Current active duty servicemembers are eligible after 90 continuous days of service.

• National Guard members and Reservists are eligible after 90 continuous days of service.

• A surviving spouse of a veteran or the spouse of a veteran who is missing in action or being held as a prisoner of war (POW) may also qualify. Review eligibility requirements on the U.S. Department of Veteran Affairs website. 

How to apply for a VA loan

Once you have determined you meet the VA’s eligibility requirements, you can begin the process of applying for your VA loan. This will involve qualifying with the VA and a VA-approved mortgage lender, and more. Here are the steps you can expect to take from the beginning to the end of the application stage: 

1. Choose a VA lender

The first step to apply for your VA mortgage is researching and choosing a VA-approved lender. VA loans are backed by the Department of Veterans Affairs, but your home loan will be financed by a lender. However, the lender you choose to work with for the duration of financing must be approved by the VA to handle VA loans.

There are a variety of VA-approved lenders on the market, but it can be helpful to work with one who has an extensive history of specializing in VA mortgages. Some credit unions are even known for their expertise in serving military members. It is important to research lenders thoroughly before submitting your application for a mortgage. Do not hesitate to reach out to potential lenders to ask them further questions, inquire about the VA loans they offer, and get a feel for their customer service.

2. Get your VA home loan Certificate of Eligibility

As you narrow down your list of potential lenders, the first document you should acquire is your Certificate of Eligibility (COE). Not only does your COE confirm you are eligible to receive a VA loan, it also provides your lender with your VA benefits entitlement (the total amount the VA will guarantee for your loan).

To obtain your COE, you can apply directly online or print this form directly from the VA website and mail it in. Here is the information you will need to submit:

• If you are a veteran, you will need a copy of your discharge papers (DD214).

• If you are an active-duty servicemember, you will need a statement of your service signed by your commander or personnel officer with the following:

• Full name

• Social Security number

• Date of birth

• Date you entered duty

• What the duration of any lost time in service was (if any)

• Name of the command supplying the information

• If you are a current or former activated member of the National Guard or Reserve, you will need a copy of your discharge papers (DD214).

You can find additional information on what you will need before you apply on the VA website. The VA suggests that the average time to receive your COE is approximately 30 days. It might be a good idea to allow 4-6 weeks to be safe.

3. Secure VA loan pre-approval

With your COE in hand, and a trusted lender in mind, you can move on to gathering your documents to submit your VA loan application. To get pre-approved for a VA loan, you must meet certain standards set by the VA and your lender. 

Once your lender confirms your service requirements through the COE, you can get pre-qualified for your loan. This involves completing a soft credit check, which does not affect your credit score, to make an initial estimate. Below you will find a list of the financial and property guidelines you may be expected to meet.

• Credit score: No minimum set by the VA; most lenders will require 620 or higher

• Debt-to-income ratio (DTI): 41% or lower

• Proof of income: Documentation showing consistent income sources

• Primary residence requirement: VA loans can only be used to purchase property that is intended to be used as a primary residence

As soon as you find a property and are ready to make an offer, a lender will work with you on finalizing pre-approval, which requires more documentation regarding your finances and a hard credit check to confirm your finances meet lending standards. A pre-approval shows sellers that you are financially qualified as a buyer and serious about purchasing a home.

4. Review VA loan minimum property requirements (MPRs)

When you are applying for a VA loan, it is also important to keep the VA’s MPRs in mind. These standards are used to assess a property and determine that the home is safe, sound, and sanitary so servicemembers are not burdened by expensive repairs in the future. This is why the home appraisal is a vital step in qualifying for your VA home loan.

Once you have found a home and put in your offer, it will be contingent on the VA home appraisal findings. A VA-approved home appraiser checks the property against their list of MPRs and determines its market value.

Though you are not required to work with a real estate agent, it can be helpful to hire one who has experience with VA loan property transactions. They can be a valuable partner throughout your homebuying process and ensure you only view properties they believe meet the VA’s property standards. When the time comes to make an offer, they can work on your behalf to negotiate the best possible deal.

How long will it take to get a VA loan?

Once you submit your VA mortgage application, it can take approximately 30-45 days to secure final approval for your home loan when all is said and done. However, keep in mind that does not account for the time it takes to get your COE.

Whether you are new to homebuying or on the hunt for your next house, it is a good idea to speak with a loan specialist to determine if a VA home loan is right for your financing needs.