VA home loan questions, answered

Veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and some surviving spouses. The VA issues a Certificate of Eligibility; the lender can usually request it for you.

For a cash-out refinance, yes. For an IRRRL on an existing VA loan, the lender generally confirms your prior VA loan instead.

Yes. Entitlement can be restored after a loan is paid off, and remaining entitlement may allow another loan while one is outstanding. The lender checks this.

Entitlement is the part of a loan the VA backs, and it is what makes a VA loan possible. You may have your full entitlement, or part of it may still be tied to an earlier VA loan. The lender checks what you have remaining.

The Interest Rate Reduction Refinance Loan — the VA's streamline refinance for people who already have a VA loan. It is meant to lower the rate or payment or move from an adjustable to a fixed rate, with less paperwork and a reduced funding fee.

The VA requires the loan to be seasoned: at least 210 days after the first payment due date, and six consecutive monthly payments made. Lenders may have additional rules.

A VA rule that a refinance must actually help you — for example, a lower rate, a lower payment, a shorter term or a move to a fixed rate. The lender documents it.

Seasoning is counted on the loan being refinanced, so it runs on your current loan, not the one before it. The first payment due date and the six consecutive payments on that loan are what count.

Yes. An IRRRL can move an adjustable-rate VA loan to a fixed rate, and the VA treats that as a benefit under the net tangible benefit test. The fixed rate may not be lower than the one you have today, so ask the lender what changes.

Yes, through the VA cash-out refinance program, even if you take no cash out. You'll need remaining entitlement and a Certificate of Eligibility.

The lender sets the maximum. The VA permits high loan-to-value cash-out refinances, but most lenders apply their own limits.

Lenders use these labels for how the new loan compares to the payoff of the old one. In a Type I, the new loan is no more than the payoff. In a Type II, it is more. VA rules apply to both, and the lender tells you which one you're looking at.

A one-time fee set by law (38 U.S.C. 3729; 38 CFR 36.4313) that can usually be rolled into the loan. For an IRRRL it is 0.5% of the loan amount. For a cash-out refinance or a purchase with less than 5% down it is 2.15% on first use and 3.3% on later uses; on a purchase it is lower with a larger down payment. Verify current figures at va.gov. Many borrowers are exempt — see the next question.

Generally, Veterans receiving VA disability compensation, Veterans rated eligible for compensation after a pre-discharge exam, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients. The lender confirms exemption with the VA.

VA purchase loans may not require a down payment in most cases, and VA loans have no private mortgage insurance. The funding fee applies instead, unless you're exempt.

Often, yes, with conditions. A condo generally has to be in a project the VA accepts, and a manufactured home has its own rules, including how it is attached to the land. The lender checks this early.

No. We're a free education and matching site operated by Rainy Day Company LLC. We're not a lender and not affiliated with the VA, the DoD or any government agency. Free information is available directly from the VA at va.gov.

Nothing to use this site or for the initial review. Lenders disclose their own fees in writing before you commit.

Not here — we don't pull credit. A lender pulls credit only when you decide to apply with them.

Your most recent mortgage statement if you have one, your Certificate of Eligibility if you already have it, and a clear idea of what you want to change. Ask the lender for the recoupment period in writing.