How to Apply for a VA Home Loan

By Stephanie Ewell

Veterans of the U.S. Armed Services can apply for a VA home loan to purchase a house, condominium or townhouse. You can also refinance your mortgage, build a new home or make energy-efficient home improvements. The application process for a VA home loan is not that different from applying for a standard mortgage loan. VA loans are available from most lenders and have the additional benefits of requiring no private mortgage insurance, no down payment and the government limits the amount of closing costs, appraisal fees and origination fees.

Find a VA approved lender. Not all lenders are VA approved. Call your local bank to inquire or use the VA Loan Guaranty website and input your zip code to receive a list of approved lenders in your area.

Get a certificate of eligibility. The VA issues this document to let lenders know you are eligible to apply for a VA loan. Complete VA form 26-1880 to request a certificate of eligibility for home loan benefits.

Submit your application. Once you've filled out form 26-1880, submit it to any VA Eligibility Center along with copies of your most recent discharge or separation papers covering active military duty. These must include active duty dates and the type of discharge. If you do not have a copy, you can use standard form 180 available at the VA website request military records.

Pick out the house. Locate the city or neighborhood you want and call a real estate agent to show you listings. Pay close attention to areas in good school districts, as these properties generally go up in value.

Present the seller with an offer. A purchase agreement is a contract for the purchase of real estate between a buyer and seller with specific terms and conditions concerning the price you're offering, a legal description of the property and a guarantee that the seller will provide clear title.

Request an appraisal from the VA. While this is usually setup by the lender, you can use the Department of Veterans Affairs telephone appraisal system and speed up the process. Call your local VA office for details.

Apply to a mortgage lender. Apply with several VA approved lenders and compare interest rates and mortgage terms before making a final decision on which lender to borrow from.

Close the loan. Closing is the final step before you can call the house your own. You will sign the mortgage loan documents and the seller will execute the deed to the home. Closing costs and any fees will be collected and disbursed and the closing agent will record the necessary paperwork that gives you legal ownership of the property.

Eligibility: Wartime veterans who served at least 90 days and were honorably discharged; Peacetime Veterans who served at least 181 days and were honorably discharged; Reserves and National Guard members who have completed six years of service are still serving and have been honorably discharged. There are other types of service that may make you eligible. Contact your regional VA office for more details.

While the exact figure is determined by your loan amount, the current maximum entitlement is $36,000 for loans up to $144,000 and $60,000 for loans over $144,000.

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