How to Buy a Home Using VA Benefits

By Jordan Meyers

The Department of Veterans Affairs (VA) offers benefits for veterans and active members of the Armed Forces who want to buy or build homes, renovate existing property or refinance their home loans. The VA provides loan guarantees for eligible people, pledging to repay mortgage loan money if a borrower fails to repay a mortgage lender. In some cases, these loans may cover 100 percent of the sale price of a home, allowing the eligible person to buy a home with no money down.

Calculate the amount of time you've spent in the military. VA home loans are available to veterans, active servicemen and spouses of deceased servicemen. However, the person who served in the military must have done so for at least 181 days during a time of peace, or 90 days during a war.

Evaluate your credit history before applying for a VA home loan. One of the benefits of VA home loans is that your credit score isn't a deciding factor. However, you'll need to demonstrate a pattern of paying your bills on time during the 12-month period prior to applying.

Gather proof of service or discharge. If you're still in the military, ask your commanding officer to provide a statement of service. If you've been honorably discharged, make a copy of your discharge papers.

Download, print and fill in VA Form 26-1880. Mail it to the address provided on the form in order to obtain a Certificate of Eligibility (COE).

Contact a VA-approved lender to begin the loan application process. While you can contact the VA with questions about VA benefits, the VA does not provide loan funds. Its purpose it to guarantee your loan, making it less risky for a lender to loan money and easier for you to secure a loan. You can obtain a list of approved lenders by contacting the VA regional loan office that is nearest you.

Provide the information and documentation your lender needs. This may include your Social Security number, bank statements, proof of income and details about your debts. This information is used to determine whether you have a pattern of paying your bills on time and how much you can afford to pay each month.

Find a home you'd like to buy and make an offer to the seller. If the seller accepts your offer, you'll need to have the home appraised by a VA-licensed appraiser. Your lender can arrange the appraisal for you.

Attend the closing meeting for your home and sign the necessary paperwork. Once closing is complete, you'll be a homeowner.

You can ask your lender to help you obtain a COE, but requesting it before you approach a lender may speed up the process of securing a loan.

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