The process for applying for a VA home loan is similar to other mortgages. However, you’ll need to confirm your eligibility and take a few steps before you’re able to apply. We explain how to apply for a VA home loan and help lay out the process, so you know what to expect.
Key Takeaways
- Finding a VA home loan lender like USAA Bank is important to ensure you understand the VA home loan process. You can ask questions along the way and get support throughout your homebuying journey from your lending team.
- Getting prequalified for a VA loan can help make searching for a home easier and ensures a simpler process once you find the home you want to purchase.
- You’ll need to get and provide a copy of your Certificate of Eligibility (COE) to your VA lender. You can obtain yours on va.gov, and your lender can usually help guide you on obtaining it.
What you need to apply for a VA home loan
As with any mortgage, you'll need several documents when you apply for a VA loan. Often the documents you may need include:
Government-issued identification (ID)
You’ll need a copy of your driver's license or some other government-issued ID with a photo, like a U.S. passport.
Your military discharge paperwork
Usually, you’ll need a copy of your DD-214 or your Reserve/Guard points statements to get your COE. You may not need some of these other documents if you already have your COE.
COE
You will need your Certificate of Eligibility (COE) , which confirms your VA loan eligibility. However, most reputable VA home loan lenders like USAA Bank, can guide you through obtaining a copy of your COE from the VA. Active-Duty members who have not been issued a certificate of eligibility may be able to obtain a statement of service.
Will you need other documents to apply for a VA home loan?
Depending on your situation, a VA home lender will likely require additional documentation, such as documentation to confirm your income to support your application process. Your lending team can help explain what documents you need and when. Occasionally, you may have additional documentation requested later in the process.
Can you apply for a VA home loan more than once?
Usually, yes. This is known as “restoration of entitlement” and is possible. However, there are some specifics surrounding getting another VA home loan. To apply for another VA home loan, at least one of these must be true:
- You’ve sold the home you bought with your previous VA home loan and have paid that loan back in full.
- A qualified person (known in this case as a Veteran-transferee) agrees to assume or take over your loan and substitute their entitlement for your same original amount of entitlement.
- You’ve repaid your prior loan in full but haven’t sold the home you bought with that loan (you can only do this one time).
To request your entitlement restoration, you’ll need to fill out a Request for a COE (VA Form 26-1880) and send it to the VA regional loan center in your state.
Are there other ways to get a second VA loan?
Even if you don’t fit one of the criteria mentioned above to “restore an entitlement” you may still qualify for a smaller amount of a VA-backed home loan. This is known as your “remaining entitlement” or may sometimes be referred to as additional entitlement, bonus entitlement, or tier 2 entitlement by the VA and your lender.
For example, the VA notes that you could have remaining entitlement if one of these matches your personal situation:
- You have an active VA loan you’re still paying back.
- You paid off a previous VA loan in full and still own the home.
- You refinanced a VA loan into a non-VA loan and still own the home.
- You had a compromise claim or short sale on a previous VA loan and didn’t repay the VA in full.
- You had a previous VA loan and transferred the home’s title to the lender that held your mortgage to avoid foreclosure.
- You had a foreclosure on a previous VA loan and didn’t repay the VA in full.
One important difference to note if you’re using your remaining entitlement instead of full entitlement is that you may need to make a down payment. This is because most VA home loan lenders require that the combined amount of your entitlement and a down payment covers at least 25% of your total loan amount. Also, if you make a down payment on your VA loan then you may be able to borrow more than the county loan limit. These loan limits are the same as the Federal Housing Financing Agency (FHFA) conforming loan limits (CLL). See the current loan limits by county.
When should you apply for a VA home loan?
You should speak with a VA home lender like USAA Bank before beginning your homebuying process. This is often helpful to understand the steps you’ll need to take, get any questions answered, and work with them to confirm eligibility.
6 main steps of the VA home loan process
While the specific order and exact steps in applying for and getting your VA home loan may vary by lender, in most cases you’ll follow these six steps:
1. Confirming your VA home loan eligibility
To take any steps in applying for a VA home loan, you’ll first need to confirm your VA loan eligibility. You can research eligibility requirements on VA.gov as you should know if you’re eligible before attempting to work with a lender on a VA home loan, but a VA home lender like USAA Bank can work with you to help get your COE as part of the loan process.
2. Find a VA home loan lender
You’ll want to ensure that the mortgage lender you choose offers VA home loans. Not all lenders do. Having an experienced VA home lender that is familiar with the details of a VA loan can make the process easier. VA home loans have different steps and requirements than conventional mortgage loans.
Additionally, if you’re a surviving spouse of a servicemember or veteran who is eligible for a VA home loan and are receiving Dependency & Indemnity Compensation (DIC) benefits, you’ll need to fill out a Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817).
3. Request VA home loan prequalification
Working with your lender to get prequalified is a good idea because it helps you with some general guidance on what payments may look like and what amounts you’re likely to get approved for based on your VA loan eligibility, income, and current interest rates. You may not be required to get prequalified. However, in many cases, the seller will request a prequalification letter to show that you are a serious buyer making an offer on a home. This may be especially helpful if you’re up against multiple offers or the seller is looking to close in a timely manner.
4. Find a home and make an offer
Once you find a home, you’ll usually work with a real estate agent and make an offer. You can work with your lender to confirm the details of your loan based on the home you find. You’ll work with your VA lender to confirm the terms, conditions, interest rate, payments, and other details, such as closing costs.
5. Provide or obtain your COE
You’ll need to provide your lender with your COE to close with a VA home loan. You can usually submit to get your COE online. However, there may be cases where you will need to work with either your VA lender or the VA regional loan center that serves your state based on your situation. For example, Active-Duty members who have not been issued a Certificate of Eligibility may be able to obtain a Statement of Service to confirm eligibility.
6. Finalize any additional documentation and close on your VA loan
Once your offer is accepted and you agree to terms with the seller, the closing process for a VA home loan includes a few steps, similar to any other mortgage loan, such as:
- VA home loan underwriting
- VA home loan appraisal
- VA home loan closing
With a VA home loan, the VA assigns an independent, third-party appraiser to assess your property's value and condition. Your VA lender has no control over the appraiser, the appraisal timeline, or their assessment of the property you’re buying.
The closing will be scheduled for a specific date, usually 30-45 days out, to allow for the proper follow-ups and any parts of the above process to be completed.
How long does applying for a VA home loan take?
The length of your VA home loan application process depends on a few factors. For instance, if you don’t have a copy of your COE, a VA home loan lender like USAA Bank can help you obtain it. However, that may take time to get and could delay the overall process of getting your VA home loan. As with other mortgage loans, you’ll also usually need to provide documents, and you may also be asked for additional documentation before closing. You may delay your approval or closing process if you don't provide additional information or documents as requested in a timely manner.
Are there income requirements when applying for a VA loan?
Anyone eligible for a VA home loan can apply for one. The VA does not have any minimum or maximum income requirement to apply for a VA loan. However, you will still need to qualify for the loan with your lender, just like with any other mortgage. The amount you are approved for by your VA lender may depend on a few factors, including your annual income, credit history, credit scores, and if you are making any down payment.
Does everyone who applies for a VA home loan get one?
No, not necessarily. Everyone who has earned their VA eligibility has access to apply for a VA home loan. However, VA loan eligibility doesn’t guarantee VA loan approval. You’ll still need to qualify for a loan based on your income, past credit history, and other factors determined by your lender. You’ll need to work with a VA lender to consider the terms, interest rate, and monthly payments.
Tools and resources provided by USAA Federal Savings Bank should be considered general advice and for informational purposes only. All information is subject to change without notice and may not apply to all members. Products, services or features mentioned may not be offered by USAA Federal Savings Bank. The information contained is not intended to represent any endorsement, expressed or implied, by USAA Federal Savings Bank or any affiliates.
Learn more about applying for a VA home loan
Get in touch with a USAA Bank VA home loan officer to ask any questions about applying for a VA loan. Our team is available to help you every step of the way, even if you’re just looking to understand the process. Learn more about the full picture of getting a VA home loan – the process, potential costs, and benefits by filling out our contact form.
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