VA Homebuyer Guide: Understanding VA Financing
An educational guide to VA home financing, including eligibility concepts, the Certificate of Eligibility, funding fee considerations, and VA construction relationships.
What Is VA Financing?
VA home loans are a benefit available to eligible veterans, active-duty service members, and certain surviving spouses. VA loans are intended to help eligible borrowers achieve homeownership with favorable terms compared to some conventional alternatives.
Eligibility Concept
Eligibility for VA loans depends on service history and other factors. Eligibility is not the same as qualification — your lender will also review your credit, income, and the property. Your loan officer can help you understand whether VA financing may be available to you.
Certificate of Eligibility
To use a VA loan, a Certificate of Eligibility (COE) is typically required. The COE confirms that you meet the service requirements. Your loan officer can help you obtain the COE or guide you on how to request it.
Primary Residence Concept
VA loans are generally intended for primary residences, not investment properties or vacation homes. This means the borrower intends to live in the property being financed.
Funding Fee Considerations
VA loans typically involve a funding fee, which is a one-time charge that helps fund the VA loan program. The funding fee may vary based on factors such as the borrower’s service category, down payment amount, and whether the borrower has used a VA loan before. Your loan officer can explain the funding fee as it applies to your situation.
VA Construction Relationship
VA construction loans are a specialized option that combines construction financing with VA loan benefits. This option may be appropriate for eligible borrowers who want to build a home rather than purchase an existing one. Coastline can help you explore whether VA construction financing may be available.
Questions to Ask
Am I eligible for a VA loan? How does the COE process work? What is the funding fee for my situation? Is a VA construction loan an option? How does a VA loan compare with other programs I may qualify for?
FAQ
Common Questions
Do I need a down payment for a VA loan?
VA loans may allow qualified borrowers to purchase without a down payment in certain circumstances. However, eligibility and qualification requirements still apply. Your loan officer can help you understand what may be available.
What is the VA funding fee?
The VA funding fee is a one-time charge that helps fund the VA loan program. The amount may vary based on several factors. Your loan officer can explain the funding fee as it applies to your situation.
Can I use a VA loan to build a home?
VA construction loans are a specialized option for eligible borrowers who want to build. Coastline can help you explore whether this option may be available.
Have Questions About Your Mortgage Options?
Connect with a licensed Coastline Mortgage loan officer to discuss your goals and take the next step.