VA Loan FAQ’s

Are VA loans difficult to qualify for?

No, the VA loan program has flexible credit and underwriting standards. While most lenders prefer Veterans with a FICO score of at least 600-620, approval ultimately depends on the lender’s discretion. The VA supports the use of other compensating factors to approve your loan, such as residual income and personal assets.

Can I use my VA loan to purchase an investment property?

No, your VA loan benefit is only for your primary residence. However, you can purchase a multi-unit property and occupy one unit while renting out the others, as long as you meet the VA’s occupancy requirements.

Do VA appraisals take a long time?

No, VA appraisals can typically be completed in 5 to 10 days once started. In high-sale areas, it may take longer due to the appraiser’s workload. The VA has implemented a new appraisal process to speed up the process, including internal-only, external-only, and desktop appraisals in lieu of physical appraisals.

Can I only use my VA loan benefit once?

No, you can use your VA loan benefit multiple times as long as you have entitlement remaining. You can own two to three properties using your VA loan benefit. Your lender can review your certificate of eligibility and advise on how much you can afford without requiring a down payment.

Can I use my VA loan benefit with a non-spouse co-borrower who is not a veteran?

Yes, but a lender may require a down payment of 12.5% to 14.5% for a non-spouse co-borrower who is not a veteran, due to the VA guarantee only covering 25% of the loan.

What if I am denied a VA loan?

If you are denied a VA loan, you can review the reason for denial and work with experienced professionals to formulate a plan and timeline to reapply.

Can I still get a property if it appraised under value?

Yes, but you will need to cover the difference above the appraised value as a closing cost, which cannot be part of the VA loan.

Can I reuse my VA loan benefit?

Yes, you can reuse your VA loan benefit if you have paid off your prior VA loan and sold the property. You can also apply for a one-time restoration of your eligibility if your prior VA loan has been paid in full and you still own the property.

What is debt-to-income ratio?

Debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income. VA guidelines do not have DTI limits, but most VA loan officers limit pre-approvals to a DTI of 50%.

Will shopping around for a lender hurt my credit score?

Not typically, multiple mortgage related credit pulls within a 45-day period will only count as a single hit against your credit score. We recommend working with a reputable mortgage broker who can shop around for the best deal with multiple lenders on one credit pull.

How do I refinance using my VA loan?

You can use the VA’s Interest Rate Reduction and Refinance loan, or “streamline refinance,” if you have already used your eligibility for a VA loan on the property you intend to refinance. Contact your vetted lender for more information.

My lender can’t obtain my COE. What should I do?

If a lender is unable to obtain your COE in WebLGY, it doesn’t necessarily mean you are ineligible for a VA loan. It just means that the VA system doesn’t have enough information to make an automatic determination of your eligibility. Lenders should continue with the application process and contact the VA RLC for assistance.

Should I wait to use my VA loan benefit if mortgage rates are high?

No, it’s not necessary to wait if you’re planning to purchase a home with a VA loan. Interest rates fluctuate all the time, so it’s best to ensure your financial and credit information is in good shape and work with a trusted mortgage broker who can shop for the best rate for you. Plus, if rates decrease in the future, you can always refinance your VA loan with an IRRRL.