How to Apply for a VA Housing Loan

By Kerri Horan

VA housing loans are often the preferred choice to obtain a mortgage for a new home if the buyer qualifies for the loan. VA home loans often have lower interest rates than conventional loans and do not require a down payment. These loans do require that the buyer has qualifying military service and is able to obtain a Certificate of Eligibility from the Department of Veterans Affairs.

Determine your eligibility by requesting a VA Form 26-1880. You can request this form online at the Department of Veterans Affairs Web site. You'll need a DD-214 proving your eligible time in service as well as the type of discharge. The VA does not directly loan the funds to purchase a home, but it is a home-loan guaranty that allows approved lenders to underwrite the loan with no down payment. The qualifications for a VA home loan are based on different qualifications as well, and they do not base the loan on a credit score.

View and inspect the home you would like to purchase. A state-licensed real-estate agent with experience in obtaining VA home loans is often the best choice for many home buyers, though this is not required. When you choose the home you'd like to purchase, the real-estate agent can refer you to a local home inspector who will inspect the home for potential problems, code violations and costly repairs. Some repairs can be negotiated so the seller fixes the problems or reduces the price of the home to reflect the cost of the repairs.

Request the loan from a lender with experience with VA loans. You may also want to contact the lender before putting a contract on a house to get pre-approved for a loan amount. At this point you will need to bring documents supporting your income history, bank statements and any other information the lender requires to get the loan approved. You may want to compare lending terms with several lenders before obtaining the loan to ensure you are getting the best rates, discount points and other valuable negotiable costs associated with the loan.

Get a property appraisal by a state-licensed real-estate appraiser. The VA will require that the property is adequate collateral for the requested mortgage price. Once the home is appraised for an acceptable amount with regard to the mortgage amount, the appraiser will send the value to the VA for approval of the loan.

Close the sale with your and the seller's real-estate agents. Your real-estate agent can help guide you through the legal aspects of the home-buying process. You'll need to contact an insurance agent to provide coverage for the home to protect against property damage and loss. When the closing documents have been signed by all parties, the loan can be originated, and the home now belongs to you.

VA home loans are usually best served by real-estate agents and mortgage brokers who have experience dealing with the VA in obtaining this kind of loan.

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