VA mortgage loan options are home loans backed by the U.S. Department of Veterans Affairs (VA) that provide affordable home financing options for eligible service members, veterans, and surviving spouses. Here at Fairway, we are proud to help our service members and veterans achieve the American dream of homeownership.
A VA mortgage loan is a home loan guaranteed by the U.S. Department of Veterans Affairs. A VA loan makes it easier for veterans, active-duty military members, and eligible surviving spouses to purchase or refinance a home because it typically doesn’t require a down payment.*
The VA offers this benefit to honor the service and enhance the lives of those who have served or are serving their country. The flexible VA mortgage loan guidelines make homeownership more attainable for active service members, vets, and surviving spouses who might not qualify or who might not see loan terms as favorable with a Conventional loan.
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds VA county limits. VA loans are subject to individual VA entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits.
VA home loans often require no down payment* and help keep your savings secure while offering more flexibility for active-duty military personnel, veterans, and eligible surviving spouses. They also feature:
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds VA county limits. VA loans are subject to individual VA entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits.
Will I have to pay mortgage insurance with a VA loan?
No, you will not. Even with zero money down, there is no monthly private mortgage insurance (PMI) required. Instead, the VA charges a one-time VA funding fee, which can be paid up front at closing or financed into the total loan amount.
In some cases, seller or lender concessions can be negotiated to help cover the funding fee. The fee percentage is calculated based on factors such as down payment amount and whether you have previously used your VA loan benefit.
Can I roll my VA loan closing costs into the total loan amount?
The VA loan program allows eligible borrowers to include some closing costs into the total loan amount—most notably the VA funding fee. Other closing costs generally cannot be financed into the loan, but you and your agent may negotiate seller concessions or lender credits to help lower your upfront out-of-pocket expenses.
What is a Certificate of Eligibility (COE)?
Before obtaining a VA home loan, you must verify eligibility with a valid Certificate of Eligibility (COE). Your COE is determined by your length of service, duty status, and character of service.
Your COE indicates whether you have “full entitlement” available (enabling zero-down purchasing) or “partial entitlement” (which may require a down payment). You can request your COE directly from the VA, or your Fairway loan advisor can pull it on your behalf during the application process.
I have already used a VA loan for my first home loan. Can I get a second VA loan?
Yes. You can utilize a VA mortgage even if you have used one previously. However, if your prior VA loan is still active, you may only have partial entitlement remaining. Paying off the prior loan in full restores your full entitlement for future use.
Can I use a VA loan to buy land?
You can use a VA loan to buy land as long as an eligible residential home is situated on the property. While the VA does not strictly limit acreage size, the surrounding properties must be predominantly residential in nature (rather than commercial or income-producing agricultural operations).
Is a VA construction loan available? Can I use a VA loan to build a home?
Yes, it is possible to use a VA loan to build a home, though availability varies by lender. VA construction loans require specific qualifications, including using a VA-approved builder and ensuring building plans meet VA financing requirements.
What credit score do I need to qualify for a VA mortgage loan?
The minimum VA loan credit score to qualify at Fairway is 580. For credit scores ranging between 580–599, additional underwriting review and documentation may be required. Your Fairway mortgage advisor can evaluate your full credit profile to walk you through the qualification process.
Adjustable-Rate Mortgage (ARM)
If you are actively serving in the military with a possibility of relocating within a few years, an adjustable-rate mortgage offer flexibility. ARMs feature fixed initial payment periods that transition into periodic payment adjustments later in the loan term.
Fixed-Rate Mortgage
Fixed-rate mortgages offer long-term stability with predictable principal and interest payments for the entire life of the loan. Available in 15- or 30-year terms, a fixed-rate option is ideal if you plan to stay in your home for a longer timeframe.
Cash-Out Refinance
A VA cash-out refinance allows homeowners to tap into their home equity to fund major expenses like debt consolidation, education, or home improvements. This option replaces your current mortgage with a new loan for an amount greater than what you currently owe. You can also refinance a non-VA loan into a VA loan using this program.
VA IRRRL (Streamline Refinance)
An Interest Rate Reduction Refinance Loan (IRRRL)—often called a VA Streamline Refinance—is designed to help lower monthly mortgage payments by refinancing an existing VA loan. It can also be used to transition from an adjustable-rate mortgage to a fixed-rate mortgage. Cash-out proceeds are not permitted with an IRRRL.
Fairway is an approved VA lender but is not affiliated with, endorsed by, or acting on behalf of the Department of Veterans Affairs or any government agency.
