What is VA Loan

Guide to VA loan

The VA home loan is the nation’s way of saying Thank You to veterans and national guards, in the way of giving home loans, at special rates, and at zero down payments. These loans may be taken across the country, in any housing property. The VA Government website provides complete details and assistance to people eligible for these loans.

VA Loan

Why choose to avail for a VA loan, and what are its benefits:

  • The VA home loan is clearly the best option for availing home loans for veterans and for national guards. Its benefits are manifold, as:
  • Generally, no down payment is required (provided the sale price is at par or below the appraised price).
  • Huge savings in insurance, and no insurance for mortgage is required for a VA home loan.
  • Special, lower interest rates for banks and other providers for this type of loan.
  • No upper limit (as with other home loans) and no non serviceable area in the country. These loans can be taken for any property value, and are available anywhere in the country.
  • No loan foreclosure charges.

You need to get pre approved for your VA home loan. But how?

Getting preapproved for a VA home loan is not a matter of choice, but a necessity, as it is a part of the process, often the first part. You get a pre approval first, then start hunting for your house, and once you have zeroed in on your home, you get the contracts and underwriting done, to close the deal and take possession.

The VA loan is just like a normal home loan or mortgage loan that you take from a bank.

VA Home Loan

Documents you will require for preapproved VA home loan:

You will need to submit your income documents, credit history, driver’s license, DD-214, statement of service, identification documents, social security number, military history and supporting documents, bank statements etc. Recent salary slips and W-2 forms are also asked for. After this, with around 2 to 3 weeks, you will get your preapproval amount for a VA home loan, in a document. This document comes handy, when you negotiate your deals with the seller.

Though a preapproved for a VA home loan is not a 100% guarantee that the loan would be disbursed when required, it is a necessary first step, and for all practical purpose, works a home loan guarantee.

Are national guards eligible for VA home loan?

Yes, national guards are eligible for VA loan from the same department of veteran affairs. They get the same benefit for zero down payment, and no requirement to pay for mortgage insurance.

Still in doubt if you are eligible for VA loans? Check this link https://www.va.gov/housing-assistance/home-loans/eligibility/ or call US Department on Veteran's Affairs at 1-877-827-3702.

Short answer in NO, as you tend to loose the special benefits of VA loan, if you try to buy a second home, without closing the first one. Your loan limit will be mainly consumed by your first VA home loan, which means a staggering down payment for your send, to make up for the deficit. You credit repayment capacity will be stretched, making your financial eligibility stressed. You must be able to comfortably service all your VA loans together, and still have money for more, if you are considering this. Also, the second property must become your residence, if you are considering this option, to avail of the benefits of this loan.

Can I have additional loan amount for repair, alteration and house improvement, when I take my VA home loan?

Yes, VA completely understands that an aging property may require some essential repair work, some alteration, to improve on the house. This also increases the durability and the value of the house or property. This is especially true for complete buy out of refinance homes. You will need to employ the services of a recognized VA appraiser, and as per his estimate and valuation, you will get your extra fund to repair and improve your house. This is included in the value of the loan, and is also completed on the closing of the loan. These proceeds are paid directly to the builder or contractor during the repair period on submission of bills.

Can I build a completely new house with a VA loan?

Yes, you can, subject to conditions. You may own the land, or you may include the plot of land as well, with your loan. You will also need to find a recognized VA lender, who lends such loans. The loan will not be sanctioned if the property you have selected is quite new, as a lot of construction value goes waste, making the loan unviable. For all other situations, this is highly possible

VA loan after chapter 7 and chapter 13 of bankruptcy. Is it even possible?

Yes, possible. You will just need to apply after the waiting period, which is typically not less than 2 years for chapter 7, and for chapter 13, it might be sooner, depending on the repayments you have made, and how much is your credit score above 600. In the waiting period, it is a good idea to work on your credit score, and improve on it, by making your repayments. Aim for a credit score above 640.

Guide to VA loan for a multi family home

How to avail or buy it, should it you buy it, and what are the advantages and disadvantages:

Can you buy a multifamily home with a VA loan?

Short answer is YES, provided you meet the following conditions:

You can buy a multifamily home with a VA loan if:

What is a multifamily home and why should I buy one?

In most cases, a multifamily home is a single building that houses two, three or four separate dwelling units for different families. A property with two, three or four units may also be called a duplex, triplex or fourplex.

The VA requires you to live in one of the units while renting out the others for rental income. This gives you the opportunity to build home equity and become a real estate investor — this is known as “house hacking.” The extra income may offset some or even all of your monthly mortgage payments and even allow you to pocket extra cash to cover other housing-related expenses.

Advantages of buying a multifamily home on VA home loan

There are three major advantages to buying a multifamily home with a VA loan when you compare with other loan programs:

  1. Joint Loan option
    Two or more veterans or national guards can team up, and put a joint application for a multi family home, resulting is elevated buying powers. The family home must be 7 units or lower, up to 2 units. Other loan programs offers this to a maximum of 4 units only.
  2. No Mortgage Insurance
    As with any other VA loan, even multifamily VA home loan does not require mortgage insurance, saving thousands of dollars.
  3. No down payment required
    The rule of a normal VA loan apply to a multi family also. No down payment provides a big financial relief for the loan takers, enabling them with increases purchasing power and eligibility for the loan, not available in any other form of loans.

VA Home Loan Specialist

To get the best deal, and to save yourself of the all the paperwork hastles, finding a loan provider, scouting for a property and filing your papers, you may choose to take the service of a VA home loan specialist, who will help you out throughout the process, for a charge of his fees. These VA specialist consultants are area specific. You may search for a VA home loan specialist in you area by using the google search box below, just remember to include your city name or state or zip code in your search query. For example, to search for a VA loan specialist in your area, search for VA loan specialist in [your State Name]:

You can also visit Veteran’s lending group, who runs a similar service, at :

visit https://veteranslendinggroup.com/get-started/find-a-loan-officer/

For more and detailed information, check the VA home loan guaranty buyer's guide issued by the U.S department of Veteran’s Affairs


Go to the top

Reviews and Ratings

0.0 / 5

0 Review


Write Review Here