Department of Veterans Affairs (VA) Secured Mortgage Loans are made to help service members, Veterans, Reservists, National Guardsmen, and certain surviving spouses to buy, retain, or adapt a home. They can also help refinance your loans.
General Program Requirements
The VA does not have the authority to take a second lien position on property. In the case of disasters, the Secretary may guarantee a loan even if it is a second lien through a public entity that provides disaster assistance.
You might fit the bill for VA-ensured credits in the event that you are:
- Veteran or qualified deployment ready help part.
- Current Reserve and Guard part (in the wake of serving 6 years of respectable hold administration).
- Certain enduring mates.
Commissioned Officers of the Public Health Service (PHS) and the National Oceanic and Atmospheric Administration (NOAA) qualify as active duty service members and Veterans once they are discharged.
You or your spouse must certify occupancy of the property. A dependent child of an active duty member may also satisfy the occupation requirement.
Length of service requirements may apply. To receive VA benefits, your leave or service must be honorable; Reserve and National Guard members must have an honorable discharge.
Sometimes people with a dishonorable license may qualify for VA mortgage loans benefits. The VA could evaluate your license. Learn more about eligibility.
Under the VA guaranteed loan program, the VA does not make loans to Veterans and service members; loans are make by private sector lenders. The guarantee amount is what the VA could pay a lender if the loan goes into foreclosure, deed-in-lieu, or short sale.
Currently, VA-guaranteed home loans do not have a maximum amount, only a maximum guarantee amount set by law. However, due to secondary market requirements, lenders typically require that the VA guarantee, plus any down payment provided by a Veteran, total 25% of the loan amount. This means that the “loan limit” is an amount equal to four times the VA’s maximum guarantee amount.
Starting January 1, 2020, we will remove the cap on VA loans that do not require an initial deposit under certain circumstances. You can get a VA-backed loan with no down payment anywhere in the country, regardless of home prices.
Please visit the Blue Water Navy Veterans and Home Loan Benefits page for more information on recent changes to the program.
- Loans for the cap amount or less are often available to Veterans with no down payment.
- Loans for more than the limit generally require a down payment.
The maximum VA guarantee amount is set annually. The amount varies depending on the size of the loan and the location of the property.
To apply for benefits under this program you will need a valid Certificate of Eligibility (COE). There are several ways to get one:
- You can obtain a COE online through the eBenefits website.
- If you can’t get a COE through eBenefits, check with your lender. In most cases, the lender will be able to obtain a COE for you using the Automated Certificate of Eligibility (ACE) Program.