Home VA Loans How Do VA Home Loans Work?

How Do VA Home Loans Work?


In today’s conditions, everyone wants a house but cannot decide which mortgage loans to choose. There are many options for obtaining mortgage loans, but what is important is that you are eligible to receive them. If you are among a few options and one of these is VA home loans, you should choose this type of credit. VA home loans are better than FHA home loans and conventional loans.

10 reasons why VA home loans are better than other home loan options are;

1- No down payment on a VA home loans.

2- No mortgage insurance for VA home loans.

3- VA home loans have a government guarantee.

4- Your ability to shop and compare VA home loans (VA home loans are offered by savings and loans institutions, U.S. banks, mortgage lenders and credit unions. And each of which sets its own VA home loans fees and rates.).

5- VA home loans don’t allow a prepayment penalty.

6- They come in many varieties (It can be used to buy a house, new-built home, condo, duplex, manufactured home or other types of properties. Or, it can be used to make repairs, refinance your existing mortgage, or improvements to your home, or make your home more energy efficient. The choices are yours.).

7- It’s easier to qualify for VA home loans.

8- VA home loans closing costs are lower.

9- The VA home loan offers funding fee flexibility.

10- VA home loans are assumable (‘Assumable’ which means you can transfer your VA home loans to a future home buyer if that person is also VA-eligible.).

Who can get VA home loans?

You must have one of these requirements to receive VA home loans;

  1. You’ve served six years in the Reserves or National Guard.
  2. You’ve served 181 days of active duty during peacetime.
  3. Your spouse was killed in the line of duty and you have not remarried.
  4. You’ve served 90 days of active duty during wartime.

If you have one of these items, your eligibility will always continue. For example, if you are a veteran and have been wounded years ago, you can still use VA home loans to buy a house.

If you are eligible to receive VA home loans, you must meet these requirements;

1- The buyer must assume all mortgage obligations, including repayment to VA home loans if the loan goes into default..

2- The existing loan must be current. If not, any past due amounts must be paid at or before closing.

3- The original owner or new owner must pay a funding fee of 0.5 percent of the existing principal loan balance.

4- A processing fee must be paid in advance, including a reasonable estimate for the cost of the credit report.

5- The buyer must qualify based on VA home loans and income standards.

You can use newspapers and local real estate publications to get VA home loans. There are still some home sellers advertising here. The other methods you can use are online resources. For example; Zumption.com, TakeList.com. Finally, the other method you can use is the Multiple Listing Service (MLS). This service is also a great resource for those who want to take VA home loans.


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