Veteran Home Loan Guide

Instead of obtaining a new mortgage, the buyer applies to assume the seller’s existing VA loan.

If approved, the buyer takes over the seller’s remaining loan balance, monthly payment, interest rate, and loan terms.

For example:

• Seller purchased a home in 2022 with a 2.75% VA loan
• Current market rates are 6.50%
• Rather than financing the purchase at today’s rates, the buyer may be able to assume the existing 2.75% mortgage

This can create substantial monthly savings over the life of the loan.

Not necessarily.

Although VA loans are generally assumable, the buyer must still qualify with the current loan servicer and receive approval before the assumption can be completed.

The buyer does not have to be a Veteran to assume a VA loan. However, there are important considerations regarding the Veteran’s remaining entitlement if a non-Veteran assumes the loan.

This is one of the most important questions to ask before agreeing to a VA loan assumption.

If another eligible Veteran assumes the loan and substitutes their entitlement, the original Veteran may be able to restore their entitlement once the transaction is complete.

If a non-Veteran assumes the loan, the original Veteran’s entitlement may remain tied to that property until the loan is paid off or refinanced into another loan program.

Because every situation is different, I strongly recommend reviewing your entitlement before agreeing to an assumption.

A VA assumption may make sense if:

• Current interest rates are significantly higher than the existing VA loan.
• The seller has an attractive interest rate that could save the buyer money.
• The buyer has enough funds to cover the difference between the purchase price and the remaining loan balance.
• Both buyer and seller understand how the assumption affects VA entitlement.

VA assumptions can be an incredible opportunity for both buyers and sellers, but they require careful planning. I’ll help you understand the process, review your eligibility, and determine whether assuming a VA loan—or allowing someone to assume yours—is the right financial decision.

The Department of Veterans Affairs (VA) does not set a minimum credit score requirement. Instead, individual lenders establish their own credit score guidelines, often referred to as lender overlays.

Many lenders look for a minimum credit score of 580 to 620, depending on the loan program and overall loan profile. If your credit score is lower than you’d like, don’t assume you don’t qualify. There may still be options available, and I’m happy to review your situation.

One of the biggest benefits of a VA loan is that many eligible Veterans can purchase a home with no down payment.

However, there are situations where a down payment may be required.

The VA guarantees a portion of your loan through a system called entitlement. If you currently have another VA loan or have partial entitlement tied up in another property, we may need to calculate your remaining entitlement based on current VA guidelines and county loan limits.

Every situation is different, which is why I calculate this for my clients before they begin shopping for a home.

Your Certificate of Eligibility (COE) is an official document issued by the Department of Veterans Affairs that verifies your eligibility for a VA home loan.

Think of it as proof that you’ve earned the right to use your VA home loan benefit.

The good news? In most cases, I can obtain your COE for you as part of the pre-approval process.

Absolutely.

One of the biggest misconceptions about VA loans is that you can only use your benefit one time.

In reality, your VA home loan benefit can be used over and over again throughout your lifetime, provided you meet VA eligibility requirements.

When you sell your home or refinance out of your VA loan, your entitlement can often be restored, allowing you to use your benefit again for a future home purchase.

Yes.

Many Veterans are surprised to learn they may be able to have more than one VA loan at the same time.

This is accomplished by using your remaining VA entitlement, often referred to as second-tier entitlement.

Whether this is possible depends on your remaining entitlement, the amount of your existing VA loan, county loan limits (when applicable), and the purchase price of your new home.

I’ll calculate this for you so you know exactly what your options are.

The VA Funding Fee is a one-time fee charged by the Department of Veterans Affairs to help keep the VA loan program available for future Veterans.

The amount depends on several factors, including whether this is your first time using your VA benefit, your down payment amount, and the type of loan you’re obtaining.

Many borrowers choose to finance the funding fee into their loan rather than paying it out of pocket.

Veterans receiving VA disability compensation—and certain other eligible borrowers—may be exempt from paying the funding fee.