Obtaining a VA Loan

By Shauna Zamarripa

A VA loan is a mortgage underwritten and insured by the Department of Veterans Affairs and granted to service personnel honorably or medically discharged. While many aspects of this type of home loan are similar to other mortgages, there are several differences in the road to obtaining a VA loan.

The application for a VA loan does not differ from other types of loans. The veteran must apply for and go through the credit requirements of a lender.

A VA certificate of eligibility can either be ordered by the veteran or ordered from the VA by the lender. This form can be ordered only if the veteran can produce a DD Form 214 showing honorable discharge or acceptable medical discharge.

This certificate sets the loan limits a veteran can qualify for, and the maximum amount the VA will underwrite. The terms of the loan, however, are set by the lender based on the veteran's income and debt.

Similar to FHA or conventional loans, VA loans have guidelines that determine acceptable income-to-debt ratios.

VA loan underwriting guidelines stipulate limits based on family size and dependents. Veterans with more dependents will qualify for less of a loan amount.

The biggest benefit to obtaining a VA loan is that no down payment is required, meaning an eligible veteran can move into a home without a large initial investment.

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