How to Get Started on a VA Loan

By Olivia Savoie

A Veteran's Affairs, or VA, loan helps people who have served in the armed forces buy homes without a down payment. The U.S. government vouches for veterans and guarantees to pay the loan principle if they default. Under a VA loan, veterans can borrow up to 102.15 percent of the purchase price of the house with a maximum price of $417,000, as of November 2010. The veteran can choose to add the VA funding fee of 0 to 3.15 percent of the loan and closing fees to reach the 102.15 percent loan amount.

Gather the documents you will need This includes income documentation such as four weeks of pay stubs, contact information for employers and landlords for the past two years, most recent tax forms and three months of bank statements. In addition you will need personal documentation such as Social Security number, date of birth, marital status and Form DD214 Discharge Papers and Veterans Separation Document.

Go to a lender with your documents and tell them you want to apply for a loan with VA benefits. The lender will give you an application to complete, take your documentation and contact the VA to confirm your information and to request the certificate of eligibility.

Wait for the lender to contact you after receiving the certificate of eligibility from the VA. You can begin house hunting while the lender verifies your other information and sends the application to the underwriter for final approval.

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