VA Home Loan

Applying for a VA Mortgage Loan

VA purchase loans are administered through the Veterans Administration and are part of a funding program secured by the government exclusive to Veterans. Eligibility for this program is largely dependent on the duty status of the Veteran regarding their time served in the military. No down payment is required.

Applying for a VA Streamline (IRRRL) Refinance

Qualified Veterans in Texas are presented an avenue that allows them to reduce their mortgage payments and capitalize on low interest rates.

Veterans owning homes can also receive cash back from VA refinance loans to pay off debt, fund home improvements and take care of other needs. No income and no assets are verified. Your employment is verified. No Appraisal is required!

More About VA Loan Limits

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment.

These loan limits vary by county since the value of a house depends in part on its location. The basic entitlement available to each eligible Veteran is $36,000.

Lenders will generally loan up to 4 times a Veteran's available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.

Remaining Entitlement

Veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan. Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less.

Thus, for example, $23,500 remaining entitlement would probably meet a lender's minimum guaranty requirement for a no-down payment loan to buy a property valued at and selling for $94,000. You could also combine a down payment with the remaining entitlement for a larger loan amount.

Obtaining a Certificate of Eligibility (COE)

Most lenders have access to the Web LGY system. This Internet-based application can establish eligibility and issue an online Certificate Of Eligibility (COE) in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in their records.

*Surviving Spouses: please bring the VA form 26-1817 to us for processing.

The VA Funding Fee

Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan's cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance.

The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment.

You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a: Veteran receiving VA compensation for a service-connected disability,


Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay,


Surviving spouse of a Veteran who died in service or from a service-connected disability

The funding fee for second time users who do not make a down payment is slightly higher. Also, National Guard and Reserve Veterans pay a slightly higher funding fee percentage.

Other Loan Costs to Consider

Be aware that the lender charges interest, in addition to closing fees and charges. Here are some general rules:

  • The lender, not VA, sets the interest rate, discount points, and closing costs. These rates may vary from lender to lender.
  • Closing costs such as the VA appraisal, credit report, state, and local taxes, and recording fees may be paid by the purchaser, the seller, or shared.
  • The seller can pay for some closing costs.(Under our rules, a seller's "concessions" can't exceed 4% of the loan.

But only some types of costs fall under this 4% rule. Examples are payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgments for the Veteran, and funds for temporary "buydowns." Payment of discount points is not subject to the 4%limit.)

  • You are not allowed to pay for the termite report, unless the loan is a refinance. That fee is usually paid by the seller.
  • No commissions, brokerage fees, or "buyer broker" fees may be charged to the Veteran buyer.
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