Mortgage questions, answered
Real questions borrowers ask, answered in plain English by The Mortgage Advisory, a mortgage lender and broker licensed in California, Texas, Florida, and Colorado (NMLS #1549739).
9 answers in VA Loans
Clear searchHow do I find a lender that really knows VA loans?
Interview them. Ask how many VA loans they close, how they handle your Certificate of Eligibility, VA appraisals, the funding fee exemption, and seller concessions, then compare two or three VA Loan Estimates from the same day. The Mortgage Advisory is a direct VA lender in California, Texas, and Colorado (a licensed mortgage broker in Florida), and we genuinely encourage veterans to compare us.
What is the VA funding fee, and who is exempt from paying it?
The VA funding fee is a one-time charge that keeps the VA loan program running in place of monthly mortgage insurance. On a purchase, it's 2.15% of the loan for first use with less than 5% down, lower with more down, and 3.3% on later use with less than 5% down. Veterans receiving VA disability compensation, some Purple Heart recipients, and surviving spouses receiving DIC are exempt. The Mortgage Advisory shows the fee, or your exemption, on your Loan Estimate.
How does assuming a VA loan work, and can a non-veteran assume it?
Yes, a non-veteran can assume a VA loan, keeping the seller's rate and balance, as long as they qualify with the loan servicer. The buyer has to cover the difference between the price and the loan balance, in cash or with a second loan, and pays a 0.5% VA funding fee. If the buyer isn't a veteran who substitutes their own entitlement, the seller's VA entitlement stays tied to the loan. The Mortgage Advisory helps both sides run the numbers.
What credit score do I need for a VA loan, and can I qualify after collections or bankruptcy?
VA doesn't set a minimum credit score; each lender sets its own, often somewhere around 580 to 620. After bankruptcy, VA generally looks for 2 years since a Chapter 7 discharge, or 12 months of on-time Chapter 13 plan payments with the trustee's permission. Collections don't automatically disqualify you. At The Mortgage Advisory, we look at your whole credit story, not just the score.
Am I eligible for a VA loan, and how do I get my Certificate of Eligibility (COE)?
You're generally eligible if you've served 90 continuous days on active duty, if you're a veteran who served 24 continuous months (or the full period you were called up, at least 90 days), or after 6 creditable years in the Guard or Reserve, with a discharge that isn't dishonorable. Some surviving spouses qualify too. Your Certificate of Eligibility (COE) proves it, and The Mortgage Advisory can usually pull it online for you in minutes.
How do I know if my VA loan rate and Loan Estimate are a good deal?
Read it like any Loan Estimate, then check the VA-specific items: the funding fee (and whether you're exempt), no monthly mortgage insurance, what you're paying in points or a flat lender fee, and how seller concessions are applied. At The Mortgage Advisory, we help veterans compare VA offers side by side, same day, same loan.
Can I use a VA loan to build a home or buy new construction?
Yes. You can use your VA loan to buy a brand-new home from a builder, and some lenders offer VA construction-to-permanent loans to build one. There are a few extra steps (a builder VA can work with, a VA appraisal, and inspection and warranty requirements), so work with someone who does VA new construction regularly. At The Mortgage Advisory, we'll put your builder's incentive package side by side with an outside VA offer so you can see which one really costs less.
What is a VA streamline refinance (IRRRL), and do I qualify?
A VA IRRRL is a streamlined refinance that lowers the rate on your existing VA loan, usually with no appraisal and less paperwork. You generally qualify if you already have a VA loan, you've made at least six payments, and the new loan gives you a real benefit, with costs recouped within 36 months. The Mortgage Advisory is a direct VA lender offering IRRRLs in California, Texas, and Colorado, and arranges them in Florida as a licensed mortgage broker.
Why do sellers turn down VA offers, and how can I make my VA offer stronger?
Mostly because of outdated myths: that VA loans close slowly, that VA appraisals are harsh, or that the seller has to pay extra fees. Today VA loans close in about the same time as conventional loans, and the appraisal standards are mostly common sense. A strong pre-approval, a lender who calls the listing agent, and smart contract terms make a VA offer compete. The Mortgage Advisory is a direct VA lender and makes that call for you.