• Equal opportunity for all qualified veterans to obtain a VA loan
  
  
• No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property)
  
  
• Buyer informed of reasonable value.
  
  
• Negotiable interest rate
  
  
• Thirty year loans with a choice of repayment plans:

a. Traditional fixed payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage);

b. Graduated Payment Mortgage--GPM (low initial payments which gradually rise to a level payment starting in the sixth year); and

c. In some areas, Growing Equity Mortgages-GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan).

• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation)
  
  
• Closing costs are comparable with other financing types (and may be lower)
  
  
• No mortgage insurance premiums
  
  
• An assumable mortgage
  
  
• Right to prepay without penalty
  
  
• For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder
  
  
• VA assistance to veteran borrowers in default due to temporary financial difficulty
  

• Guarantee that a home is free of defects. VA guarantees only the loan. It is the veteran's responsibility to assure that he/she is satisfied with the property being purchased. The VA appraisal is not intended to be an "inspection" of the property. A veteran should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement.
  
  
• If you have a home built, VA cannot compel the builder to correct construction defects although VA does have the authority to suspend a builder from further participation in the home loan program.
  
  
• VA cannot guarantee that a veteran is making a good investment.
  
  
• VA cannot provide a veteran with legal services.

• Apply for Certificate of Eligibility: If you don't have yours already, download the application form, complete it, and mail it along with a Statement of Active Service from your admin office (if still on active duty) or a copy of your DD214 to the nearest VA Regional Office.
  

• Contract to purchase: Veteran selects home and discusses purchase with seller or selling agent and signs purchase contract conditioned on approval of a VA guaranteed loan.
  
  
• Loan application: Veteran selects lender, presents Certificate of Eligibility, and completes loan application. Lender will develop all credit information and request VA to assign a licensed appraiser to determine the reasonable value for the property. Veteran will pay for credit report and appraisal unless the seller agrees to pay. Either VA or the lender will issue a value for property for loan purposes based on the appraisal.
  
  
• Loan decision: If the established value is acceptable to all parties and the lender develops that a veteran is credit and income qualified, the loan may be approved. Most lenders are authorized to make this decision.
  
  
• Loan closing: Veteran (and spouse) attend the loan closing and sign the note, mortgage, and other related papers. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. When the loan is reported to VA, the Certificate of Eligibility is annotated to reflect the use of entitlement and returned to the applicant. (The loan closing procedure may vary in some states.)

1. To buy a home, including townhouse or condominium unit in a VA-approved project.
   
   
2. To build a home.
   
   
3. To simultaneously purchase and improve a home.
   
   
4. To improve a home by installing energy-related features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA. These features may be added with the purchase of an existing dwelling or by refinancing a home owned and occupied by the veteran. A loan can be increased up to $3,000 based on documented costs or up to $6,000 if the increase in the mortgage payment is offset by the expected reduction in utility costs. A refinancing loan may not exceed 90 percent of the appraised value plus the costs of the improvements. Check with a lender or VA for details.
   
   
5. To refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate.
   
   
6. To buy a manufactured home and/or lot.