VA Loans

To apply for a VA loan, you'll need several key documents, including:

• Certificate of Eligibility (COE) – to prove military service
• Proof of income, such as:
  • Recent pay stubs
  • Tax returns
  • W-2s
• Personal identification – e.g., a government-issued photo ID
• Military service records, including:
  • DD214 (for veterans)
  • Statement of Service (for active duty or National Guard/Reserves)
• Recent bank statements
• Property purchase agreement (if applicable)
• VA-required home appraisal
• Credit report
• Additional documents, depending on your situation, such as:
  • Divorce decree
  • Rental history

Check with your lender for any additional requirements that are specific to your unique situation. 

The VA Funding Fee is a one-time fee required for most veterans using a VA loan and helps offset the program’s cost to taxpayers. The fee ranges from 2.3% to 3.6% of the loan amount (0.05% for VA Interest Rate Reduction Refinance Loans, also called IRRRL). The fee varies depending on factors such as whether it's your first or subsequent VA loan use, and if you make a down payment.

The VA Funding Fee is usually rolled into the loan, allowing veterans to finance it rather than pay up front. This fee helps ensure the VA loan program remains available for future generations of veterans and is one of the reasons VA loans don’t require private mortgage insurance (PMI). Veterans with service-connected disabilities are typically exempt from the fee. 

While a VA appraisal ensures the home meets the VA’s Minimum Property Requirements (MPRs), it doesn't cover hidden issues like plumbing, HVAC, or roof conditions. Therefore, obtaining a home inspection is highly recommended when applying for a VA loan.

A home inspection goes beyond the appraisal, uncovering potential problems that could lead to costly repairs down the line. It also allows you to negotiate with the seller for repairs, credits, or a lower sale price — ensuring that the home is a sound investment. A home inspection provides essential protection and helps you avoid unexpected expenses after closing.

• The borrower must occupy the property as their primary residence within 60 days of closing.
• For multi-family homes (up to 4 units):
  • The borrower must live in one of the units.
  • The other units can be rented out.
• In cases of deployment or relocation, a spouse can fulfill the occupancy requirement.
• The property cannot be vacant for more than 12 months.
• Purchases of investment properties and second homes are not eligible for VA financing.
• The home must be used primarily as the borrower's personal residence:
  • Not as a second home.
  • Not as a rental property.

Yes, veterans and service members can have more than one VA loan under certain conditions. The VA loan program allows individuals to use their VA loan entitlement multiple times if there is remaining entitlement. If you’ve paid off or sold a previous home, your entitlement can be restored, making you eligible for a second VA loan.

It’s also possible to have two VA loans at once if you meet the eligibility requirements, such as having sufficient entitlement and meeting income and credit criteria. The loan amount and eligibility depend on factors like county loan limits and whether the home will be your primary residence.

If you’re considering applying for a second VA loan, it’s a good idea to work with a mortgage lender experienced in VA loans, such as our team at Waterstone Mortgage. We can help you understand how much entitlement you have left and guide you through the process.

Yes, a VA loan can be paid off early without any prepayment penalties. One of the key advantages of a VA home loan is the flexibility to make extra payments or pay off the loan in full at any time without incurring additional fees. This feature can help homeowners save money on interest over the life of the loan.

Before proceeding, it’s always a good idea to confirm with your VA loan lender that there are no specific terms or conditions that could affect early repayment.

If you're having trouble making payments on a VA loan, it’s crucial to contact your lender immediately to explore options like forbearance, loan modification, or payment deferral.

The VA also offers assistance programs to help veterans facing financial hardship, including default assistance and special forbearance programs. Refinancing through a VA IRRRL (Interest Rate Reduction Refinance Loan) may also help lower your payments if your financial situation improves.

If keeping the home isn't feasible, you might consider selling the property or relocating. Taking proactive steps and working with your lender can help avoid foreclosure and put you on the path to financial recovery.