VA loans are available through approved private lenders, such as banks, credit unions, and mortgage companies. A home purchase through a VA loan typically requires a VA-approved lender to order a home appraisal.
Eligible service members and veterans can apply for a VA-backed home loan through a private lender, such as a bank, credit union, or mortgage company. If the loan is approved, the private lender will work with the VA to provide financing for the home purchase.
VA home loans offer several benefits to eligible service members and veterans, such as no money down, no private mortgage insurance, and reduced closing costs.
For starters, you’ll need a Certificate of Eligibility (COE) to prove to your lender that you are eligible for a VA-backed home loan. You can obtain your COE through eBenefits, by mail, or through your lender.
The amount you can borrow with a VA home loan depends on many factors, such as your credit score, employment history, and the value of the home you are interested in purchasing.
The market determines the interest rate for a VA home loan, but it will always be competitive. VA loans are not government-sponsored like FHA or USDA loans, so the VA does not set the interest rates.