High-Level Highlights:

 

-Exclusively for veterans or their surviving spouses.

-No loan amount limit for veterans who do not currently have a VA loan.

-A down payment as low as 0%.

-Ability to add many closing costs to the loan amount.

-The interest rate is almost always lower than on a Conventional loan.

-Available for primary residences only.

-No monthly mortgage insurance.

-A “funding fee” ranging from 0.5% to 3.6% of the loan amount is required, depending on the scenario. This fee is waived for all scenarios for veterans who are considered at least 10% disabled by the VA.

-There is no minimum credit score or maximum debt-to-income (DTI), but both are heavily factored into loan qualification.

 

Further Highlights:

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-An appraisal is required on all purchase and cash-out refinance scenarios, and it is never required on a no cash-out refinance

-Cash-out refinancing is available up to 100% loan-to-value (LTV).

-To do a no cash-out refinance, you must already have an VA loan. This loan can be done without a credit pull, appraisal, or verification of employment/income. The VA charges a 0.5% funding fee.

-For condos, the VA requires the condo association be on the VA's list of approved associations.

-There is a VA renovation loan that allows borrowers to buy a home and borrow the funds needed to complete renovations on the property after closing. This program is harder to qualify for, requires more documentation, and has higher interest rates than a standard VA loan.