How to Apply for a VA Mortgage Loan

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VA programs allow military professionals an opportunity to quality for special mortgages.s.
VA programs allow military professionals an opportunity to quality for special mortgages.s. (Image: house image by Brett Bouwer from <a href='http://www.fotolia.com'>Fotolia.com</a>)

A Veterans Administration (VA) loan is made by lenders, such as banks, mortgage companies and credit unions, to veterans who meet eligibility requirements. These loans are backed by the federal government to provide home-ownership opportunities to people who have served in the military. VA loans require a minimal down payment and offer low interest rates. This provides more flexibility to borrowers. However, before taking advantage of this loan program, it helps to understand the process and requirements.

Request a VA Form 26-1800 from the Department of Veterans Affairs. This is an application that will prove eligibility for a VA loan. The form will require that proof of service, such as discharge papers, be attached to the paperwork. Once Veterans Affairs processes the request, the organization will send a certificate of eligibility to the borrower.

Ask the lender if the company has access to the Web LGY. This is an online system used by lenders that generates a certificate of eligibility in a matter of minutes. The office of Veterans Affairs and Banks created a partnership to make this technology available to borrowers. However, not all banks have access to it.

Complete the loan application. After the certificate of eligibility has been approved, complete a formal loan application. This will require income, credit and debt information. The lender may require documentation that supports the application, such as tax returns and financial statements.

Sign closing documents. After the loan has been processed and approved, the borrower can sign loan documents. The financial institution will schedule a closing date to sign these documents. Review the documents for accuracy before signing.

Tips & Warnings

  • Applicants who are still actively serving in the military can attach a statement of service to prove eligibility (attach with the Form 26-1800). The applicant’s director can provide this statement.
  • Military spouses that remarry can’t quality for VA home loans (unless older than 57). However, spouses that remains unmarried can qualify for benefits if the veteran is no longer living. Children of veterans can not qualify for VA home loans.

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