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VA Loans
Types of Loans
Repayment Types

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). It is a powerful benefit available to Veterans, Service members, and eligible surviving spouses to help them buy, build, or improve a home.
VA loans offer many benefits, including:
- No down payment required.
- No private mortgage insurance (PMI).
- Competitive interest rates.
- Flexible credit and debt-to-income requirements.
- No funding fees for most Veterans.
VA loans are available to eligible borrowers to finance the purchase of a home, including – Single-family homes, Condominiums, Manufactured homes, Multifamily homes, Second homes, Home improvements and Refinances.
VA loans are administered by private lenders, such as banks and mortgage companies. The VA does not lend money directly to borrowers. Instead, the VA guarantees a portion of the loan, which reduces the risk for the lender. This allows lenders to offer more favorable terms to VA borrowers, such as no down payment and no PMI.
To be eligible for a VA loan, you must meet the following requirements:
- Be a Veteran of the U.S. Armed Forces.
- Have served on active duty for at least 90 days, or have been discharged due to a service-related disability.
- Have a Certificate of Eligibility (COE).
The COE is a document that proves your eligibility for a VA loan. You can get a COE online or by contacting the VA.
Once you have a COE, you can start shopping for a VA loan. It is important to compare interest rates and fees from different lenders before you choose a loan. You can use the VA’s Loan Guaranty Home Loan Lender Locator to find lenders in your area.
VA loans are a great option for Veterans, Service members, and eligible surviving spouses who are looking to buy a home. They offer many benefits that can help you save money and get into the home of your dreams.
Here are some additional details about VA loans:
- Interest rates: VA loans typically have competitive interest rates. However, the exact interest rate you receive will depend on your credit score, the amount of the loan, and the current market conditions.
- Closing costs: VA loans have lower closing costs than conventional loans. In fact, the VA may even pay some of your closing costs.
- Down payment: VA loans do not require a down payment. This can be a huge benefit for Veterans who do not have a lot of money saved up for a down payment.
- PMI: VA loans do not require private mortgage insurance (PMI). PMI is an insurance policy that protects the lender in case you default on your loan. With a VA loan, the VA guarantees the loan, so the lender does not need PMI.
- Credit score: VA loans have more lenient credit score requirements than conventional loans. In general, you will need a credit score of at least 620 to qualify for a VA loan.
- Debt-to-income ratio: VA loans also have more lenient debt-to-income ratio (DTI) requirements than conventional loans. Your DTI ratio is the amount of your monthly debt payments divided by your monthly income. In general, you will need a DTI ratio of no more than 50% to qualify for a VA loan.
If you are a Veteran, Service member, or eligible surviving spouse, I encourage you to consider a VA loan. VA loans can make it easier and more affordable to buy a home.
Contact your GenNext.Mortgage loan advisor today.
Things to keep in mind about VA loans:
- VA loans are not available for investment properties.
- VA loans have a funding fee, which is a percentage of the loan amount. The funding fee is waived for most Veterans who have served on active duty for at least 24 months.
- VA loans have a maximum loan amount. The maximum loan amount varies depending on the location of the property.