What is a VA loan?

A VA loan is a mortgage option guaranteed by the U.S. Department of Veterans Affairs (VA) and issued by private lenders. This program is a lifetime benefit created to help eligible active-duty service members, veterans, and surviving spouses achieve homeownership. The VA guaranty minimizes risk for the lender.
Perfect for those with a military background seeking maximum loan flexibility.
It offers zero down payment and no private mortgage insurance (PMI) required.
You’ll often benefit from competitive rates and limited closing costs.

Benefits of a VA loan

VA loans are intended to make homeownership more budget-friendly for service members and veterans. Veterans and service members choose VA financing as their primary option because of several benefits. The key benefits are valuable but understanding how it works out in real life is important.

Low or no down payment

Many eligible borrowers can purchase a VA home loan without a down payment. It shortens the time to purchase a home and reduces the need to save for years.

No PMI requirement

Instead of monthly PMI, the VA charges a one-time funding fee (with exemptions for some veterans), making monthly payments lower than traditional loans.

Competitive interest rates

Because the VA guarantee reduces lender risk, VA loans typically come with attractive pricing compared to unsecured or secured alternative loans.

More flexible financing

We look at your overall financial situation, steady job, income, and savings, so loans are more accessible for people with bad credit history.

Refinance options made simple

The VA’s IRRRL (Interest Rate Reduction Refinance Loan) can be a fast, low-document way to reduce your interest rate if you already have a VA loan.

Types of VA Loans

There are several VA loans available to meet different needs. Each loan type has its own rules, timing, benefits, and paperwork. Contact a Rize Mortgage loan officer who will explain which path matches your goals. Below are the common types of VA loans:
VA Purchase Loan : Buy a home with little or no down payment, ideal for first-time or repeat buyers.
VA IRRRL : Refinance your VA loan to lower your rate or switch from adjustable to fixed.
VA Cash-Out Refinance : Use your home’s equity for renovations, debt consolidation, or other financial needs.
VA Construction & One-Time Loan : Finance construction, major repairs, or improvements with a single VA-backed loan.
VA Native American Direct Loan (NADL) : Helps eligible Native American veterans buy, build, or improve a home on federal trust land.
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Pre-Qualify for a VA Loan

VA loan requirements

VA loans follow VA rules, plus lenders can have their own extra requirements. Working with a VA-experienced lender helps you handle your rights, get your COE, and meet any state rules. Knowing the usual requirements makes it easier to get the most out of your loan and avoid surprises when buying your home. 

Eligibility & Certificate of Eligibility (COE)

To use VA benefits, you must qualify based on your service. You can request a COE, which proves your eligibility for the loan.

Occupancy

VA purchase loans are intended for primary residence use, you’re expected to occupy the home in a reasonable time after closing.

Credit & underwriting

The VA doesn’t set a minimum credit score. We look at your credit history, recent payments, and overall financial stability.

Debt-to-income (DTI)

We will see if your income can cover your new mortgage. VA loans are flexible, but we check how much money you have left each month.

Funding fee & exceptions

Most VA loans include a one-time funding fee to support the program. Some borrowers, like disabled veterans or surviving spouses, may be exempt.

Entitlement & usage history

If you’ve used a VA loan before, the VA backs up your new loan based on your remaining entitlement. We use this to set your loan amount.
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How to Apply for a VA Loan

Applying for a VA loan is easier when you understand the process. Timelines can vary, but staying organized and submitting documents quickly helps everything move faster.
Pre-Qualify for a VA Loan : Get a quick financial review to determine affordability and confirm that a VA loan is the right fit.
Get Your Certificate of Eligibility (COE) : We can request your COE digitally, or you can confirm your VA loan entitlement directly.
VA Loan Pre-Approval : Submit pay stubs, tax returns, and bank statements so we can verify income and strengthen your offer.
House Hunting & Making an Offer : Make an offer confidently with pre-approval and review VA appraisal and timeline expectations.
Closing the Loan : Finish underwriting, complete the VA appraisal, sign documents, fund the loan, and get your keys.
Start VA Loan Pre-Approval

Tips to get the best VA loan outcome

Before you apply for a VA loan, keep your pay stubs and bank statements ready. Having your documents ready makes financing faster and easier. 

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While your loan is being processed, refrain from opening new credit cards or accounts. Even a small change in your credit profile can affect your loan approval.

2

If you’ve had a VA loan before, ask us about restoring or using partial benefits. You might not need to sell your current home to use VA benefits again.

3

Be sure to ask about the VA funding fee. Some veterans, service members with disabilities, or surviving spouses may qualify for an exemption.

4

If the home needs repairs, don’t worry. A VA renovation loan is a better option than buying a home that can’t pass the VA appraisal.

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FAQ (Frequently Asked Questions)

Can a non-veteran assume a VA Loan?

Yes, a non-veteran can assume a VA loan if they meet the lender and VA credit requirements. While VA loans are primarily for eligible veterans, the assumption program allows non-veterans to take over the mortgage. The new borrower must qualify under standard lending criteria. However, the original veteran’s VA entitlement may remain tied to the loan unless a release is granted, which can limit future VA loan use.

Can You Refinance a VA Loan?

Yes, VA loans can be refinanced through the VA Interest Rate Reduction Refinance Loan (IRRRL) or a VA Cash-Out Refinance. The IRRRL, also called the VA Streamline Refinance, is designed to lower your interest rate with minimal paperwork and no appraisal in most cases. A VA Cash-Out Refinance lets you access your home’s equity for expenses like debt consolidation or home improvements. Both options maintain VA program benefits, including competitive rates and no PMI.

Are VA Home Loans Assumable?

Yes, VA home loans are assumable, meaning another qualified borrower can take over the loan’s terms, including its interest rate. Loan assumption can be attractive if the original loan has a low fixed rate compared to current mortgage rates. However, the new borrower must meet VA and lender credit/income requirements, and the veteran’s entitlement may remain tied to the loan unless it’s restored. This option can make selling a home easier in high-rate environments.

Can You Buy a Foreclosed Home with a VA Loan?

Yes, you can use a VA loan to buy a foreclosed or short-sale home, as long as the property meets VA’s minimum property requirements (MPRs). VA loans require the home to be safe, structurally sound, and sanitary. Some foreclosed properties may not meet these standards, requiring repairs before closing. If the home doesn’t pass appraisal, you may need to negotiate repairs with the seller or choose another property.

How Many VA Home Loans Can You Have?

You can have more than one VA loan at a time if you have remaining entitlement and meet lender requirements. VA loan entitlement determines how much the VA guarantees on your behalf. If you’ve used only part of it or restored it after selling a previous home, you may qualify for another VA loan. This allows some veterans to own multiple homes financed with VA loans under certain conditions.

Ready to take benefits of VA Loan?

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