How to apply for a VA Home Loan (zero-down mortgage for veterans)
Step-by-step guide to applying for a VA-backed mortgage. The VA Home Loan offers zero down payment, no PMI, competitive rates, and limited closing costs. 5 steps: get COE, choose VA-approved lender, get pre-approved, find home, close.
What you'll need
- DD-214 (long-form) or active-duty Statement of Service
- Certificate of Eligibility (COE) — get free at VA.gov
- Two years of W-2s and tax returns
- Two recent pay stubs
- Credit report (lender pulls)
Step-by-step
Step 1: Get your VA Certificate of Eligibility (COE)
Apply online at va.gov/housing-assistance/home-loans/how-to-apply/. The COE confirms you're eligible and shows your remaining entitlement (most veterans have full entitlement). Most COEs issue in minutes online; rare cases take 5-10 business days. Free.
Reference: https://www.va.gov/housing-assistance/home-loans/how-to-apply/
Step 2: Choose a VA-approved lender
Most major banks + many credit unions are VA-approved. Compare rates from 3-5 lenders — VA loan rates can vary by 0.25-0.5% between lenders for the same borrower. Look specifically for lenders with high VA-loan volume (Veterans United, USAA, Navy Federal, NewDay USA, but also local banks). The VA does not lend directly — they guarantee loans made by approved private lenders.
Step 3: Get pre-approved (NOT just pre-qualified)
Pre-approval involves a hard credit pull and full income verification. It produces a pre-approval letter the seller takes seriously. Pre-qualification is just a soft conversation — sellers ignore it. Get pre-approved BEFORE house-hunting so you know your max purchase price.
Step 4: Find a home and make an offer
Work with a realtor experienced in VA loans. The home must be your primary residence (no investment properties). VA imposes a Minimum Property Requirements (MPR) inspection — fixer-uppers may not qualify. Include "subject to VA appraisal" contingency in your offer.
Step 5: Close the loan
Closing typically takes 30-45 days. Costs you'll pay: VA Funding Fee (1.4-3.6% of loan, can be financed; waived for 10%+ disabled veterans); origination fee (capped at 1%); appraisal (~$500-600); title insurance + recording (~$1,500-3,500). The seller can pay up to 4% of closing costs as concessions. Wounded Warriors' Housing Down-Payment Assistance program may bridge any closing-cost gap — apply at warriorsfund.org/grants/housing.
Critical tips
- Disability rating ≥10% waives the VA Funding Fee. If you have any service-connected disability, request the waiver — it can save $5K-$15K on a typical loan.
- You can use VA loan multiple times (entitlement restores after sale or refinance). It's NOT a one-time benefit.
- VA Home Loan + VA Energy Efficient Mortgage (EEM) lets you finance up to $6,000 of energy-efficiency upgrades directly into the mortgage at the time of purchase.
- Wounded Warriors' Housing Down-Payment Assistance program (warriorsfund.org/grants/housing) targets the "closing-cost wall" — the typical $10K-$25K cash-at-closing requirement that derails veteran homeownership even with zero-down VA loans.