For eligible veterans, service members, Reserve and National Guard members and certain surviving spouses. No down payment in most cases and no monthly mortgage insurance. Here is how eligibility works, what the funding fee is, and how VA refinances work.
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
A VA loan is made by the lender and partly guaranteed by the Department of Veterans Affairs. The guarantee is VA’s promise to repay the lender part of its loss if the loan is not repaid. That promise is what lets the loan be made with no down payment in most cases and no monthly mortgage insurance.
There is no down payment in most cases, though a veteran who has used part of the benefit before may need one on a larger loan. The interest rate is agreed between you and the lender; VA does not set it.
Veterans discharged under conditions other than dishonorable, service members still serving, Reserve and National Guard members, and certain surviving spouses. Service rules have many exceptions, so VA, not the lender, decides eligibility.
It shows whether you are eligible, how much of the benefit is available and whether you pay the funding fee. We can usually request it from VA for you; if VA needs proof of service, we tell you what to send.
Most borrowers pay a one-time VA funding fee, which can be added to the loan. It depends on your down payment and whether you have used the benefit before. Veterans receiving compensation for a service-connected disability, and some others, are exempt.
We request your Certificate of Eligibility from VA. It often comes back quickly; if not, VA reviews your proof of service.
You complete the application and allow a credit report. Your income, savings and debts are reviewed using VA’s rules, which look at the income left over each month as well as your debts.
VA assigns the appraiser. The appraisal values the home and lists any repairs needed to meet VA’s property standards. It is not a home inspection, so VA recommends one.
The appraisal is reviewed and you receive a notice of the home’s value. If the price is above that value, you can pay the difference, renegotiate or cancel under the VA clause in your contract.
With either option, the new loan must give you a clear benefit, and a VA loan being refinanced must have been in place for a minimum period first.
Have a VA loan? VA’s Interest Rate Reduction Refinance Loan usually needs no appraisal or income check, must pass VA’s benefit test and gives no cash back; the lender may still ask for a value estimate and a credit score. Closing costs can be included in the new loan.
Replace a VA loan or any other mortgage with a new VA loan and take cash from your home’s value for any purpose. You must live in the home. VA’s rules allow borrowing up to the home’s value; the limit for your loan depends on the program.
Cash-out refinancesThe automated findings list exactly what your loan needs. Most veterans can start with these.
In most cases, no down payment is needed. A veteran who has used part of the benefit before and not had it restored may need one on a larger loan. Your Certificate of Eligibility shows how much of the benefit is available.
Yes. The benefit can usually be restored once the home is sold and the loan paid off, and in some cases restored once without selling. Ask your loan officer to check your certificate.
No. It depends on your down payment and whether you have used the benefit before, and some borrowers are exempt. Your loan estimate shows the amount.
VA loans can be assumed by a later buyer with the servicer’s approval. If the buyer is not a veteran using their own benefit, your benefit stays tied to that loan until it is paid off.
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999.
Get a quote, apply online, or talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice. VA loans are made by the lender and partly guaranteed by the U.S. Department of Veterans Affairs, which does not endorse any lender.