Introduction
Before we dive into the specifics of the VA home loan process time, let’s briefly go over some important things you need to know about VA loans.
What is a VA home loan?
A VA home loan is a mortgage loan that is guaranteed by the Department of Veterans Affairs (VA) and offered by private lenders such as banks and mortgage companies. It is designed to help eligible veterans, service members, and surviving spouses to buy, refinance, or improve a home.
Who is eligible for a VA home loan?
To be eligible for a VA home loan, you must meet at least one of the following criteria:
Requirement |
Minimum Service Period |
|---|---|
Active-duty service member |
90 continuous days of service |
Veteran |
Honorable discharge |
National Guard or Reserve member |
6 years of service |
Surviving spouse |
Unremarried and spouse died in the line of duty or as a result of a service-related disability |
What are the benefits of a VA home loan?
VA home loans offer several benefits, including:
- No down payment required (up to the loan limit)
- No private mortgage insurance (PMI) required
- More lenient credit and income requirements
- Lower interest rates compared to conventional loans
- Assumption and refinancing options
How does the VA home loan process work?
The VA home loan process involves several steps, including:
- Get pre-approved for a VA loan
- Find a home and sign a purchase agreement
- Apply for a VA loan
- Order a VA appraisal
- Underwriting and loan approval
- Closing and funding
What is the VA loan funding fee?
The VA loan funding fee is a one-time fee that you may have to pay when you get a VA loan. The fee helps the VA to cover the costs of the loan program and reduce the burden on taxpayers. The amount of the fee depends on several factors, such as your military status, down payment amount, and whether it is your first or subsequent use of the VA loan benefit. The fee can be financed into the loan or paid upfront.
Can I use a VA loan to buy a second home or investment property?
No. VA loans are intended for primary residences only, not second homes or investment properties.
Can I refinance my existing mortgage with a VA loan?
Yes. You can refinance your existing mortgage with a VA loan to lower your monthly payments, shorten the loan term, or convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The two main types of VA loan refinancing are the VA Interest Rate Reduction Refinance Loan (IRRRL) and the VA Cash-Out Refinance.
VA Home Loan Process Time
Get pre-approved for a VA loan
The pre-approval process involves submitting an application to a lender and providing documentation such as income verification, bank statements, and credit report. The lender will evaluate your eligibility for a VA loan and provide a pre-approval letter, which shows how much you can afford to borrow. The pre-approval process can take anywhere from a few hours to a few days.
Find a home and sign a purchase agreement
Once you have a pre-approval letter, you can start looking for a home with a real estate agent or on your own. When you find a home that meets your criteria, you will need to make an offer and sign a purchase agreement. The purchase agreement is a legal contract between you and the seller that outlines the terms and conditions of the sale, including the purchase price, contingencies, and closing date. The time it takes to find a home and sign a purchase agreement can vary, but it usually takes a few weeks.
Apply for a VA loan
After you sign a purchase agreement, you will need to apply for a VA loan with your lender. The lender will request your Certificate of Eligibility (COE) from the VA, which verifies your military service and entitlement. You will also need to provide additional documentation such as income and employment verification, asset statements, and property information. The lender will review your application and documentation and determine if you meet the VA loan requirements. The application process can take several days to several weeks.
Order a VA appraisal
As part of the VA loan process, the lender must order a VA appraisal to determine the property’s value and ensure that it meets the VA’s minimum property requirements (MPRs). The VA appraisal can take a few days to a few weeks, depending on the property’s location and complexity.
Underwriting and loan approval
After the VA appraisal, the lender will submit your loan application and documentation to an underwriter, who will review and verify the information. The underwriter will assess your creditworthiness, debt-to-income ratio, and ability to repay the loan. If everything checks out, the underwriter will issue a loan approval, which indicates that you are qualified for a VA loan. The underwriting and loan approval process can take several days to several weeks.
Closing and funding
The last step in the VA home loan process is closing and funding. At the closing, you will sign the loan documents and pay any closing costs and fees. The lender will then wire the loan funds to the title company or attorney who will disburse them to the seller and other parties. The time it takes to close and fund a VA loan can vary, but it usually takes a few hours to a few days.
FAQs
1. How long does it take to get a VA loan pre-approval?
The pre-approval process can take anywhere from a few hours to a few days, depending on the lender’s workload and how quickly you provide the required documents.
2. How long does it take to find a home and sign a purchase agreement?
It can take a few weeks to find a home that meets your criteria and negotiate a purchase agreement with the seller.
3. How long does it take to apply for a VA loan?
The VA loan application process can take several days to several weeks, depending on how quickly you provide the required documentation and how long it takes for the lender to review and approve your application.
4. How long does it take to get a VA appraisal?
The VA appraisal can take a few days to a few weeks, depending on the property’s location and complexity.
5. How long does it take to get a VA loan approval?
The underwriting and loan approval process can take several days to several weeks, depending on how quickly you provide the required documentation and how long it takes for the underwriter to review and verify your information.
6. How long does it take to close and fund a VA loan?
The time it takes to close and fund a VA loan can vary, but it usually takes a few hours to a few days.
7. Can I get a VA loan if I have bad credit?
While the VA does not have a minimum credit score requirement, most lenders will have their own requirements. If you have bad credit, you may need to work on improving your credit score or find a lender who specializes in VA loans for borrowers with less-than-perfect credit.
8. Can I use a VA loan to buy a manufactured or modular home?
Yes. VA loans can be used to buy manufactured or modular homes that meet the VA’s MPRs.
9. Can I use a VA loan for home improvements?
Yes. VA loans can be used for home improvements, such as energy-efficient upgrades, accessibility modifications, or repairs required by the VA appraisal or MPRs.
10. Can I get a VA loan for a rental property?
No. VA loans are intended for primary residences only, not rental properties.
11. Can I get a VA loan if I already have a mortgage?
Yes. You can get a VA loan to refinance your existing mortgage or to buy a new home if you still have a mortgage on your current home.
12. Can I buy a multi-unit property with a VA loan?
Yes. You can use a VA loan to buy a multi-unit property (up to four units) as long as you occupy one of the units as your primary residence.
13. How much can I borrow with a VA loan?
The maximum amount you can borrow with a VA loan varies depending on the county where the property is located and whether you have used your VA loan benefit before. You can check the current VA loan limits on the VA website.
Conclusion
Ready to start the VA home loan process?
Click here to find a VA-approved lender near you.