VA Loans

How VA Loans Work

At NEXA Mortgage, we are committed to helping veterans, active-duty service members, and eligible surviving spouses understand how a VA mortgage loan works. The U.S. Department of Veterans Affairs (VA) does not lend money directly; instead, it guarantees a portion of the loan, allowing lenders to offer more favorable terms. Our role is to help you qualify for a VA loan and structure it to best suit your home financing needs.

VA Loan Benefits

VA loans are one of the best mortgage options available for eligible military members and their families. Here are some of the key benefits:

No Down Payment Required – VA loans allow for 100% financing, meaning eligible borrowers don’t need a down payment to purchase a home.

No Private Mortgage Insurance (PMI) – Unlike conventional and FHA loans, VA loans do not require PMI, reducing monthly mortgage costs.

Competitive Interest Rates – Because VA loans are government-backed, they often have lower interest rates than conventional loans.

Flexible Credit Requirements – VA loans offer lenient credit score requirements, making homeownership more accessible for those with past financial challenges.

Lower Closing Costs – The VA limits lender fees to keep closing costs lower for borrowers. Additionally, sellers can pay up to 4% of the home price toward closing costs.

Streamlined Refinancing Available – The VA Interest Rate Reduction Refinance Loan (VA IRRRL) allows eligible borrowers to refinance with minimal paperwork and no appraisal in most cases.

Lifetime Benefit – VA loans are a lifetime benefit, meaning you can use the VA loan multiple times as long as you meet eligibility requirements.

Assistance During Hardship – The VA offers financial counseling and foreclosure assistance if borrowers experience financial difficulties.

VA Loan Checklist

Military Service Verification

Certificate of Eligibility (COE) – This verifies your VA loan entitlement. We can help you obtain it from the VA.
DD-214 (for veterans) – This discharge document is required for former service members.
Statement of Service (for active duty and Reserve/National Guard members)

Employment Information

Past two years of completed tax returns
Past two years of W-2s, 1099s, or other income statements
One month of the most recent pay stubs
Self-employed borrowers: Three years of tax returns and a year-to-date Profit & Loss Statement

Savings & Asset Information

Past three months full bank statements for all accounts.
Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).

Personal Information

Driver's License or other official State identification.
Social Security Card.
Any Divorce, Palimony, Alimony Documents.
Green card or work-permit (if applicable).

VA Loan FAQ

Eligibility & Requirements

Who is eligible for a VA loan?

VA loans are available to active-duty service members, veterans, reservists, and eligible surviving spouses.

How do I obtain a Certificate of Eligibility (COE)?

You can apply for a COE through the VA eBenefits portal, your lender, or by mailing a request to the VA.

Is there a minimum credit score for VA loans?

The VA does not set a minimum credit score, but most lenders prefer a score of 580–620 for approval.

Can I use a VA loan more than once?

Yes! VA loans are a lifetime benefit, and you can use them multiple times as long as you have remaining entitlement.

Do I need a down payment for a VA loan?

No! VA loans allow for 100% financing with no down payment required.

Loan Terms & Property Guidelines

What types of properties can I buy with a VA loan?

Single-family homes

Condos in VA-approved developments

Multi-unit properties (up to 4 units, if one is owner-occupied)

Manufactured homes (with lender approval)

Can I use a VA loan for an investment property?

No. VA loans are only for primary residences—investment properties and vacation homes are not eligible.

Are there loan limits for VA loans?

There are no loan limits for first-time VA borrowers, but those with remaining entitlement may have loan limits based on their location.

Do VA loans require mortgage insurance?

No! VA loans do not require private mortgage insurance (PMI). Instead, there is a one-time VA funding fee that can be financed into the loan.

Closing Costs & Refinancing

What is the VA funding fee?

The VA funding fee is a one-time cost that helps sustain the VA loan program. It varies based on down payment amount and whether you’ve used a VA loan before. Some veterans (such as those with service-connected disabilities) may be exempt from this fee.

Can closing costs be rolled into a VA loan?

Some closing costs can be included in the loan, and the seller can pay up to 4% of the home’s value in closing costs.

Can I refinance my VA loan?

Yes, you can refinance through the VA Interest Rate Reduction Refinance Loan (VA IRRRL) or a cash-out refinance to access your home’s equity.

How long does it take to close a VA loan?

Closing a VA loan typically takes 30 to 45 days, depending on underwriting and VA appraisal timelines.

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The information provided on this website is for general informational purposes only and does not constitute financial, legal, or mortgage advice. VA loan guidelines, eligibility requirements, and funding fees are subject to change based on federal regulations and lender policies. Loan approval is not guaranteed and is subject to credit approval, verification of income and assets, and property eligibility. NEXA Mortgage is not acting on behalf of or at the direction of the U.S. Department of Veterans Affairs (VA) or any government agency. Borrowers are encouraged to consult with a licensed mortgage professional to discuss their specific financial situation and loan options. For the most up-to-date VA loan eligibility requirements , please visit the VA Home Loans website