How the VA Home Loan Process Works
Your Guide to Getting a Home Loan Through the VA
If you’re an active duty service member, veteran or an eligible spouse or dependent, you know that the US Department of Veterans Affairs (VA) offers home loans. You might not know the process for obtaining one of these loans, however. Since First State Bank can provide VA home loans to eligible applicants, we would like to take a moment to guide you through the overall process of obtaining one.
What is a VA Home Loan?
The VA provides home loans to active service members, veterans and eligible surviving spouses. These home loans are granted through private lenders, and the VA guarantees a portion of the loan. There are a few different types of VA home loans, most notably: Purchase Loans, Interest Rate Reduction Refinance Loans and Adapted Housing Grants. There are a few key differences among these loans:
- PURCHASE LOANS ALLOW ELIGIBLE RECIPIENTS TO PURCHASE A NEW HOME.
- INTEREST RATE REDUCTION REFINANCE LOANS ALLOW RECIPIENTS TO REFINANCE THEIR EXISTING VA LOAN TO LOWER THEIR INTEREST AND MONTHLY PAYMENTS.
- ADAPTED HOUSING GRANTS HELP DISABLED VETERANS BUILD NEW HOMES OR ADAPT THEIR CURRENT HOMES TO MAKE THEM MORE ACCESSIBLE.
Who is Eligible for a VA Home Loan?
Length of service, duty status and character of service affect eligibility for certain home loans, and a Certificate of Eligibility (COE) is required for all VA home loans. Active duty service members with satisfactory credit, as well as their spouses and dependents, are eligible for purchase loans. Active duty service members or their family members who already have a VA loan are eligible for an Interest Rate Reduction Refinance Loan, and disabled veterans are eligible for Adapted Housing Grants.
How Do You Apply for a VA Home Loan?
The first step in applying for a VA home loan is obtaining a certificate of eligibility (COE) and deciding which type of loan is right for you. Then, you’ll need to meet with a lender to complete a loan application and gather the necessary documents and paperwork. Your lender will then order a VA appraisal, which will be reviewed and either approved and granted or denied. If your appraisal is approved, your lender will choose a title company, attorney or other representative to conduct the closing and have the property transferred to you.
Applying for a VA home loan is a relatively simple process, and your Regional Loan Center or local First State Bank branch can help you find the right VA loan and guide you through the application process.