For Those Who Served

VA Home Loans: A Benefit for Those Who Served

VA loans are a benefit earned through military service, offering a path to homeownership backed by the U.S. Department of Veterans Affairs. The VA does not lend money directly; it provides a guaranty to approved lenders, which reduces the lender’s risk. This guaranty is what makes the program distinct from conventional and other government-backed loans.

Quick Answer

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs and offered through approved lenders. The program is available to eligible active-duty service members, veterans, and qualifying military families. It is designed to help those who have served achieve homeownership.

How VA Loans Work

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs and offered through VA-approved lenders. The VA provides a guaranty to the lender, which means a portion of the loan is protected if the borrower defaults. This guaranty reduces the lender’s risk and shapes the program’s qualification guidelines.

Eligibility for a VA loan is determined by the borrower’s military service history. Active-duty service members, veterans, and certain surviving spouses may be eligible. Borrowers must obtain a Certificate of Eligibility from the VA, which their lender can often help secure. The program is designed for primary residence purchases, and the property must meet VA minimum property requirements.

One of the most discussed features of VA loans is the funding fee, a one-time cost that helps fund the VA loan program. The fee can often be financed into the loan. VA loans do not require monthly mortgage insurance in the way that conventional and FHA loans do, which is a distinction many eligible borrowers explore with their loan officer.

Eligibility

Who may be eligible for a VA loan?

Active-duty service members

Those currently serving who meet service requirements

Veterans

Those who have served and meet the VA service requirements

Eligible surviving spouses

Certain surviving spouses of military service members

Certificate of Eligibility required

Your lender can often help secure this from the VA

Understanding VA Loans

What VA loans may offer — and what to know

Potential Benefits

  • Backed by the U.S. Department of Veterans Affairs through a lender guaranty
  • No monthly mortgage insurance premium like conventional or FHA loans
  • Designed specifically for those who have served in the military and their eligible family members
  • Can be used for new construction in certain scenarios through the VA construction loan program

Important Considerations

  • Eligibility is determined by military service history and requires a Certificate of Eligibility
  • A VA funding fee applies and can often be financed into the loan
  • Limited to primary residences — not available for second homes or investment properties
  • Property must meet VA minimum property requirements as determined by a VA appraisal
“VA loans are a benefit earned through military service. Coastline is honored to help those who have served achieve homeownership.”

Coastline Mortgage

Building a Home

VA construction loans

Eligible veterans and service members can use their VA benefit to finance the construction of a new home through the VA construction loan program.

Frequently Asked Questions

What is a VA loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs and offered through VA-approved lenders. The VA provides a guaranty to the lender, which reduces risk and shapes the program’s guidelines.

Who is eligible for a VA loan?

Eligibility is based on military service history. Active-duty service members, veterans, and certain surviving spouses may qualify. Borrowers must obtain a Certificate of Eligibility from the VA, which a lender can often help secure.

Can I use a VA loan more than once?

Yes, VA loan benefits can be used more than once. If you have paid off a previous VA loan, you may be able to restore your entitlement and use the benefit again. Your loan officer can help you understand how entitlement restoration works.

Can I use a VA loan for new construction?

Yes, VA loans can be used for new construction through the VA construction loan program. This is a specialized option that combines construction financing with the VA guaranty. Your loan officer can explain how it works.

What is the VA funding fee?

The VA funding fee is a one-time cost that helps fund the VA loan program. It can often be financed into the loan amount. Certain borrowers, such as those receiving VA disability compensation, may be exempt from the fee.

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