How to use your VA home loan
Using your VA home loan means finding a property, getting a lender to issue a Certificate of may be able to access, having the property appraised by a VA appraiser, and closing the loan. You do not have to search for a property first — you can get pre-approval before you start house hunting, which shows sellers you are a serious buyer. The VA does not lend the money itself; instead, private lenders (banks, credit unions, mortgage companies) make the loan, and the VA guarantees a portion of it so the lender takes less risk.
The process differs from a conventional mortgage in one key way: the VA appraisal is mandatory and protects you, not the lender. A VA appraiser checks that the property is worth what you are paying and that it meets minimum standards for safety and livability. If the appraisal comes in lower than your offer, you can renegotiate the price, walk away, or pay the difference yourself — but the lender will not lend more than the appraised value.
Key Takeaways
- You need a Certificate of may be able to access from the VA before any lender will process your loan, and you can request one through VA.gov, by mail, or through your lender.
- Pre-approval from a lender happens before you find a property and tells you how much you can borrow and what your interest rate will be.
- A VA appraiser must inspect the property and confirm its value; if the appraisal is lower than your offer price, the lender will not fund the difference.
- Closing happens at a title company or attorney's office, where you sign final paperwork and the lender transfers money to the seller.
- You can use your VA loan benefit more than once, either for a new purchase or to refinance an existing VA loan into better terms.
Getting your Certificate of may be able to access before you shop
The Certificate of may be able to access is a document from the VA that proves you have earned the right to use a VA loan. Lenders will not start processing your process without it. You can request one three ways: through VA.gov (the fastest method, usually when ready), by mail to the VA Regional Office that covers your state, or by asking your lender to request it on your behalf during pre-approval.
To request online through VA.gov, you will need a Login.gov account or a Veterans Health Identification Card (VHIC). The system will ask for your service dates and discharge status. If you are approved, you can read and print the certificate when ready or have it mailed to you. If you served in the National Guard or Reserves, you may need to provide documentation of your active duty service, since the VA counts only active duty time, not drill weekends or annual training.
If you do not have internet access or prefer to explore by mail, send a completed VA Form 26-1880 (process for a Certificate of may be able to access for VA Home Loan Benefits) to your state's VA Regional Office. Processing by mail takes two to four weeks. Some lenders will request the certificate for you during pre-approval, which can save you a step, but you should have it in hand before you make an offer on a property.
Getting pre-approved and understanding your borrowing limit
Pre-approval is a lender's estimate of how much money they will lend you, based on your income, credit score, and debts. It is not a may provide, but it shows sellers you are serious and gives you a clear budget before you start looking at properties. To get pre-approved, contact a lender (bank, credit union, or mortgage company) and provide your Certificate of may be able to access, recent pay stubs, tax returns, and a list of your debts.
Your VA loan limit depends on your state and county. The VA guarantees a portion of the loan (the amount varies), which allows lenders to offer loans without a down payment. In 2024, the maximum may provide is $36,000 in most counties, but some high-cost areas have higher limits. Your lender will tell you the specific limit for the property you want to buy. You can borrow more than the may provide amount, but the lender may require a down payment on the portion above the may provide.
Pre-approval also locks in an interest rate for a set period (usually 30 to 60 days). Interest rates change daily, so the rate you see today may not be the rate you get at closing if you wait weeks to make an offer. Ask your lender how long the rate is locked and whether you can extend the lock if you need more time to find a property.
Making an offer and ordering the VA appraisal
Once you find a property you want to buy, you and the seller agree on a price and sign a purchase agreement. Your real estate agent or attorney will include language that the sale is contingent on a satisfactory VA appraisal. This protects you: if the appraisal comes in lower than the purchase price, you can back out without losing your earnest money deposit.
After the purchase agreement is signed, your lender orders the VA appraisal. The VA appraiser is a licensed professional who inspects the property and compares it to similar homes that have sold recently in the area. The appraisal takes one to two weeks. The appraiser also checks that the property meets VA minimum standards: the roof, plumbing, electrical, and heating systems must be in safe working order, and there must be no evidence of lead paint hazards (for homes built before 1978).
If the appraisal comes in at or above your purchase price, you move forward to closing. If it comes in below your offer, you have three choices: renegotiate the price with the seller, pay the difference in cash out of pocket, or walk away from the deal. The lender will not lend more than the appraised value, so if you choose to pay the difference, that money comes from your own funds, not from the loan.
Closing and funding your loan
Closing is the final step where you sign all the loan documents and the lender transfers money to the seller. It happens at a title company or attorney's office and usually takes one to two hours. Before closing, you will receive a Closing Disclosure, a document that lists the final loan amount, interest rate, monthly payment, and all fees. Review it carefully and compare it to your pre-approval to make sure nothing has changed unexpectedly.
At closing, you will sign the promissory note (your promise to repay the loan), the deed of trust or mortgage (which gives the lender a claim on the property if you do not pay), and other documents. You may also need to provide proof of homeowners insurance and a final walkthrough of the property to confirm no major damage has occurred since you made the offer.
After you sign, the lender funds the loan, meaning they transfer the money to the title company or attorney. That office then pays the seller, records the deed in your name at the county courthouse, and sends you the keys. You are now the owner and your monthly mortgage payments begin (usually 30 days after closing).
Using your VA loan benefit again
Your VA loan benefit does not expire and you can use it more than once. You can use it to buy a second home while still owning the first, or you can use it again after you sell a previous VA-financed home. Some veterans use their benefit multiple times over a lifetime as they move for work or family reasons.
You can also use your VA loan benefit to refinance an existing VA loan into better terms through a VA Interest Rate Reduction Refinance Loan (IRRRL, sometimes called a "Streamline" refinance). An IRRRL requires less paperwork and no new appraisal, and it is designed to lower your interest rate or change your loan term. You cannot use an IRRRL to refinance a conventional loan into a VA loan; the original loan must already be a VA loan.
If you used your full benefit to buy a home and then sold it, your benefit is restored and you can use it again. If you still own a home financed with a VA loan, you can use your benefit a second time for another property, but your entitlement will be divided between the two loans. Ask your lender how much of your benefit remains available before you start shopping.
Common issues during the VA loan process
One frequent problem is a property that fails the VA appraisal because of safety issues — a roof that needs replacement, outdated electrical wiring, or evidence of water damage. The seller must fix these issues before closing, or you can negotiate a credit (a reduction in price) to cover the repairs yourself after you own the home. Some sellers refuse to make repairs, which can kill the deal.
Another issue is a low appraisal that comes in below your purchase price. This is common in hot markets where bidding wars push prices above what comparable homes have sold for. If this happens, you must either renegotiate with the seller, pay the difference yourself, or walk away. There is no way around the appraisal value — the lender will not lend more than the appraised amount.
Title problems can also delay closing. If the seller does not have clear ownership of the property (for example, a lien from a contractor or unpaid property taxes), the title company will not issue title insurance and the lender will not fund the loan. The seller must resolve these issues before closing. Title searches usually catch these problems early, so they can be fixed before you are deep in the process.
Frequently Asked Questions
Do I have to put money down with a VA loan?
No. VA loans are designed to require no down payment, which is one of their main advantages. However, if you want to borrow more than the VA may provide amount in your county, the lender may require a down payment on the portion above the may provide. You can also choose to put money down to reduce the loan amount or to avoid paying a funding fee.
What is the VA funding fee and do I have to pay it?
The VA funding fee is a one-time charge paid to the VA to offset the cost of the loan program. It is typically 1.4 to 3.6 percent of the loan amount, depending on whether it is your first use of the benefit and whether you are putting money down. You can pay it upfront at closing or roll it into your loan. Some veterans are exempt (disabled veterans rated by the VA, surviving spouses of veterans who died in service). Ask your lender for the exact fee for your situation.
Can I use my VA loan to buy a mobile home or a condo?
Yes, but with restrictions. For a mobile home, the VA will finance it only if it is permanently affixed to land you own, and the loan is typically shorter (15 years instead of 30). For a condo, the building must be on the VA's approved list, which means the VA has reviewed the building's finances and structure. Not all condos are approved. Ask your lender to check whether a specific condo is VA-approved before you make an offer.
What happens if I cannot pay my VA loan?
Contact your lender when ready if you fall behind on payments. Many lenders offer forbearance (a temporary pause or reduction in payments) or loan modification (changing the terms to lower your payment). If you do not contact your lender, they can foreclose on the property. The VA also has a loan guaranty that protects the lender, not you, so defaulting will damage your credit and you can lose your home.
Can I sell my home before the loan is paid off?
Yes. When you sell, the proceeds from the sale pay off the remaining loan balance, and you keep any money left over. Your lender will provide a payoff statement that shows exactly how much you owe at any point in time. The title company handling the sale will use the payoff amount to pay off your loan at closing.