Home Loans

You can use the VA home loans programs to buy, build, or improve a home or refinance your current home within the U.S. and its territories, including Puerto Rico and the Northern Mariana Islands.

These loans come with added benefits such as no-down payment requirement, no Private Mortgage Insurance (PMI) requirements, low interest rate, low closing cost, etc.

Not only do veterans qualify for these loans, but spouses also qualify for them.

The Home Loans Program consists of one VA Direct Loan and 3 VA-Backed Loans.

The VA Direct Loan Program.
With this program the VA serve as your mortgage lender. This means you’ll work directly with them to apply for and manage your loan. This program currently consists of the Native American Direct Loan (NADL).

Native American Direct Loan (NADL) program
This type of VA Direct Loan is for Native American Veterans, or a Veterans married to a Native American? You can use it to buy, build, or improve a home on federal trust land. It has no down payment requirement, no requirement for Private Mortgage Insurance (PMI), and low closing cost, low interest rate (2.5%). You can also get more than one NADL and you can refinance it for a lower interest rate. You must have at least 90-181 days of active service (depending on when you serve) to qualify for the NADL. You must also have an honorable discharge. To apply for the NADL you must first request a Certificate of Eligibility (COE).

APPLY for the NADL Direct Loan

The VA Backed Home Loans Program.
With the VA-backed home loan, the VA guarantee (or stand behind) a portion of the loan you get from a private lender. If your VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Lenders follow our VA standards when making VA-backed home loans. They may also require you to meet additional standards before giving you a loan. These standards may include having a high enough credit score or getting an updated home appraisal (an expert’s estimate of the value of your home).

There are three Loans that are part of this program, the Purchase Loan, the Interest Rate Reduction Refinance Loan (IRRRL) and the Cash Out Refinance Loan.

Purchase Loan:
Use this loan to buy, build, or improve a home. You will have to pay a funding fee (unless you are disabled). It has no down payment requirement, no requirement for Private Mortgage Insurance (PMI), and low closing cost, low interest rate (2.5%). There is no penalty if you pay off the loan early. You can borrow up to the Fannie Mae/Freddie Mac conforming loan limit. You must live in the home you purchase with this loan and meet the lender’s credit and income requirements. To qualify you must have completed 90-181 days of active-duty service (depending on when you serve). You start the application process by getting a Certificate of Eligibility (COE).

Apply for the Purchase Loan



Interest Rate Reduction Refinance Loan (IRRRL)
With this loan you can replace your existing VA Loan with one that has better terms that reduces your monthly payment. You will have to pay a funding fee (unless you are disabled). To be eligible you must currently live in or used to live in the home covered by the loan. There is no-down-payment, and you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most areas—and more in some high-cost counties. There may be closing cost.

To Apply for the IRRL you have to go through a private bank, mortgage company, or credit union—not directly through the VA. Take the Certificate of Eligibility (COE) you used to get your original VA-backed home loan to them.


Cash Out Refinance Loan.
Use this loan to replace your current loan with a new one under different terms. You can also use it if you want to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan. To qualify you must meet your lender’s requirements for credit and income and you must live in the home. To qualify you must have completed 90-181 days of active-duty service (depending on when you serve). Start the application by going through a private bank, mortgage company, or credit union—not directly through the VA. Take the Certificate of Eligibility (COE) with you.

Apply for the COE.