VA Home Loans in 2021 – Eligibility, Pros and Cons

Not all lender offers VA loans; while some who do specialize on working with a group of people more than the other, e.g. the military borrowers.

VA loans for Homebuying

VA home loans help veterans and service members have their own homes by creating a more flexible plan for taking loans. These loans often have a much lower interest rate than regular mortgages and do not require a minimum down payment or mortgage insurance.

VA loans are provided by given by private lenders such as mortgage companies and banks. While the VA insures a portion of each loan, it’s up to individual VA lenders to determine what kind of loans they want to issue. It is always said that VA loans are not easy to take. Because using VA loans involve some other steps that are not found with other mortgages. Although it is not always an easy road, it is possible to still take these loans. You may consider getting a professional to help you through the process.

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However, here are some tips that will help.

  1. Certificate of eligibility

A VA certificate of eligibility is a certificate that proves your eligibility for the surviving spouse and military service requirement which is needed to take a loan. 

Your VA certificate of eligibility is a document that shows you meet the military service or surviving spouse requirements to apply for a VA loan. You’ll need it for the loan to close, so it’s a good idea to get this done at the beginning, says Kevin Parker, a vice president at Navy Federal Credit Union. You can request the certificate through the VA or ask a VA-approved lender to help you get it. You can ask a VA-approved lender to help you get it or request the certificate through the VA lender itself.

2. Compare VA mortgage lenders

Not all lender offers VA loans; while some who do specialize on working with a group of people more than the other, e.g. the military borrowers. Consider the lender who is willing to work with you. Also that it is better to work with a lender that understands the requirements and can guide you through the process.

3. Decide how you pay loan costs

Although not the regular mortgage, VA loans also have fees that are charged to cover the services as other mortgages do. But asides from this, there is also the VA funding fee paid by first-time borrowers. You must decide how you intend to fund these costs.

VA loans do not usually require a down payment. But you still need some cash in order to improve your chances of getting approval. Lenders will review your cash savings to ensure you are financially stable enough to overcome hurdles such as unexpected expenses.

Pros & Cons of VA Home Loans –


  1. They don’t require any down payments.
  2. No private Mortgage Insurance (PMI) i.e. no recurring insurance payments.
  3. VA home loans do not require any minimum credit score.
  4. They have the lowest interest rates (APR) in comparison with other private lenders.
  5. Eligible candidates can take higher debt against income ratio in VA loans.


  1. VA home loans are only for a primary residence. If people having already a home then they are not eligible for VA loans.
  2. You have to pay upfront VA Funding Fees to fund the loan.
  3. Processing a VA loan is a slow process. It needs 2-5 extra days to close.
  4. They have a more complex transition and due to this, some sellers are disinterested.
  5. VA loans are for the only active-duty persons in reservists and military veterans.
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Harish is the editor at howto Finance. Here we publish high quality trending news topics on Business, Finance, Loans and Credit-Cards etc. Our editorial includes worldwide topics.

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