Credit requirements are similar to those associated with FHA loans.
VA loans are a special type of home mortgage reserved for active military members and veterans. These home loans are guaranteed by the U.S. Department of Veterans Affairs and offered by participating approved lenders. VA loans allow eligible veterans and active military personnel to realize their home buying dreams and help existing VA homeowners with money-saving refinance options.
The program is also available to the unmarried surviving spouse of a veteran who died on
active duty or because of a service-related disability. Credit requirements are generous
and flexible, and loan issuers are encouraged to approve applications.
Certificate of Eligibility
In order to apply for a VA-sponsored loan, you will need to obtain a Certificate of Eligibility (COE). Your COE verifies to lenders that you meet the requirements necessary to obtain a VA-sponsored loan. Applying for a COE is straightforward and can be done online, through the mail or through a lender.
Active duty military personnel and current National Guard members or Reservists who have never been Federal active service will need to present a current statement of service in order to obtain a COE.
Veterans and current or former National Guard members and Reservists that have been activated for Federal active service will need to present a DD Form 214 confirming their past service.
No Down Payment required on purchase loans
No penalty fee if the loan is paid off early
No private mortgage insurance
Less than perfect credit can apply
VA may provide some assistance if there are mortgage payment problems
Active-duty military
Veterans
Reservists
Members of the National Guard
Some surviving spouses of veterans