A VA purchase loan is a home loan that is backed by the U.S. Department of Veterans Affairs. VA purchase loans are designed to help current and veteran service members buy a home. VA purchase loans typically have better terms and interest rates than other financing options and do not require a down payment. For those who qualify, a VA home loan is usually the best option. 












What Can I Use My VA Purchase Loan for?

A VA purchase loan can be used to:

  • Buy a home: You can purchase a single-family home or condo in a VA-approved project, manufactured home, or lot.  
  • Build a home: You can build a home from the ground up using a VA loan. However, some lenders will place restrictions on property types. When a VA loan is used to build a home, it’s often referred to as a VA construction loan. 
  • Improve your home: You can make upgrades like energy efficient features, necessary renovations, and more. When a VA loan is used to improve a home, it’s often referred to as a VA purchase renovation loan. 

With a VA purchase loan, you can achieve virtually any of your homeownership needs and goals—you can even use a VA loan for a mobile home.

VA Purchase Loan Benefits

There are a number of significant benefits that VA purchase loans can provide borrowers. Some of the key benefits of a VA purchase loan include:

  • No down payment: A VA home loan does not require you to make a down payment. This means that you don’t necessarily have to worry about saving up tens of thousands of dollars in order to purchase a home.
  • Low interest rates: When taking a look at VA loan requirements, you should notice that VA home loan interest rates are generally lower than those attached to conventional mortgages. There are a number of factors that will play a role in your interest rate and getting pre-approved for a VA loan will give you a better idea of the rate you’ll pay. 
  • No PMI requirement: Another great benefit of VA purchase loans is that you don’t have to pay any private mortgage insurance, even if you decide not to put any money down.
  • Flexible credit and qualifying requirements: While conventional loans have strict credit score requirements, VA purchase loans are more flexible. If you have below average credit, we can still work with you to secure a VA loan.
  • Limited closing costs: When you take out a VA purchase loan, there’s a limit on the amount you can pay in closing costs, which can lower the upfront cost of purchasing a home. If you have a 401(k), you can also do a 401(k) withdrawal to help cover closing costs.

These are just a few of the many benefits you will enjoy if you decide to go with a VA loan. Reach out to us with any questions you might have and review the VA loan timeline to better understand the loan application and approval process. It is our goal to help you find the right loan package to meet your needs, and we want to get you to the closing table as quickly as possible.

VA Purchase Loan Requirements

To be eligible for a VA purchase loan, there are two different sets of requirements to consider: those for the VA and those for your mortgage lender.

The VA has the following requirements:

  • Must be a current service member or veteran (or a qualifying surviving spouse) 
  • Must plan to occupy the home as your primary residence
  • Must apply for a Certificate of Eligibility (COE), which you will provide to your mortgage lender

To qualify for a mortgage, your lender will have their own requirements. At Griffin Funding, our VA loan requirements include:  

  • Minimum credit score of 500
  • Proof of income
  • Pest inspection and VA appraisal

If you’ve had a recent credit event or bankruptcy, other terms may also apply. If you comply with these VA loan requirements, you can move forward with the mortgage application process

If you have further questions about VA purchase loan guidelines, our knowledgeable loan officers can clarify how this loan program works and determine whether you qualify. If you do not qualify for a VA loan to build a house or purchase a home, Griffin Funding has a variety of other mortgage options available.

To compare your financing options and learn more about the loans we offer, download the Griffin Gold app. With the Griffin Gold app, you can manage your finances, privately browse home listings, access smart budgeting tools, and get personalized advice from our mortgage professionals — all in one place!

How to Get a VA Purchase Loan

Below are the basic steps to follow if you’re interested in getting a VA home loan:

    1. Apply for a COE with the VA. 
    2. Begin your application process with Griffin Funding by submitting an application online or speaking with one of our loan officers on the phone. 
    3. Your loan officer will then review your eligibility for a VA purchase loan and provide you with a VA loan rate that you can lock in.  
    4. They may request additional documentation to verify your information and submit to underwriting. 
    5. During this time, you will need to schedule a pest inspection and VA appraisal. 
    6. As soon as everything is processed, you will be able to review your final loan documents and finalize the details. 
    7. You will receive your funding for your VA purchase loan, usually on the same day the loan is finalized

Using the latest technology and streamlined processes, we are typically able to complete this process in 30 days or less.

What Is the Loan Limit for a VA Loan?

There is not a specific loan limit that you can borrow on a VA purchase loan. Prior to 2020, there were limits on how much of a given loan the VA would insure. Traditionally, the amount the VA would guarantee was compliant with the limits set by the Federal Housing Finance Agency, which was known as the conforming loan limit. 

However, as of 2020, there are no longer VA home loan limits (unless you have more than one active VA loan), making the dream of homeownership open to more veterans and service members than ever before—as long as they meet the VA loan requirements. Our free VA loan calculator can help you understand what you can afford and what your mortgage payment will be – it even includes the new VA funding fees that went into effect on April 7th, 2023. 


Do You Pay Closing Costs on a VA Loan?

You may have to pay some closing costs. While you do not pay a down payment or monthly mortgage insurance with a VA home loan, you may be responsible for other closing costs, including

  • The VA Funding Fee: The VA funding fee is based on the type of home loan you receive as well as the total amount of your loan. You will pay the one-time fee at closing. 
  • Loan Origination Fee: The loan origination fee is associated with the creation of the account and loan processing. 
  • VA Appraisal Fee: The VA appraisal fee is charged for the assessment of the property’s value and condition. 
  • State and local taxes: State and local property taxes are typically required when you purchase a home. 
  • Recording Fee: The recording fee is charged for the real estate documents that must be recorded by the county.

Typically, closing costs can be negotiated between the buyer and seller.


Other Types of VA Loans

In addition to the VA purchase loan, there are other types of VA home loans, including: 

  • Native American Direct Loan (NADL): Available to Native American veterans or veterans married to a Native American. With this home loan, you can build, buy, or improve a home on federal trust land.
  • Interest Rate Reduction Refinance Loan (IRRRL): Also known as a VA streamline refinance loan, you can refinance your original VA home loan to reduce your monthly mortgage payment and potentially improve the terms of your loan.
  • VA Cash-Out Refinance Loan: Refinance your mortgage and use the equity in your home to get cash to pay off debts or address other needs.


Apply for a VA Purchase Loan

Once you have qualified for your COE, you’ll need to find a mortgage lender to get you pre-approved for your VA loan — and we encourage you to choose Griffin Funding. We are dedicated to making the mortgage process as quick and painless as possible, usually completing everything within 30 days or less. 

Interested in learning more about VA home loans? Take a look at our VA loan blog articles to read more about VA loans or use our free VA loan calculator to get an estimate of what your monthly mortgage payment might look like when using this loan type.

If you’re ready to build, buy, or improve your home with a VA purchase loan, apply online or call us at (855) 394-8288.


Frequently Asked Questions

Is it hard to qualify for a VA purchase loan?

Qualifying for a VA home loan should be relatively straightforward as long as you meet the basic VA loan requirements. Reach out to a member of our team who can help you review your eligibility for a VA loan, whether you’re interested in a purchase loan, a cash-out refinance, or a VA streamline refinance loan.

What is the maximum amount you can borrow with a VA home loan?

If you qualify for the full VA entitlement, there is no limit on VA loans, which means that you should be able to borrow as much as you want and the VA will guarantee up to 25 percent of the loan amount. However, your loan application and amount still needs to be approved by your lender. During the underwriting process, your lender will assess your income, financial history, credit score, existing debts, and assets to determine how much you qualify for.

How many times can you use a VA purchase loan?

As long as you have full entitlement, you can use a VA purchase loan as many times as you want. If you do not qualify for full entitlement, you may be able to restore your entitlement by selling your home to pay off your loan, using the one-time restoration of entitlement, allowing another qualifying veteran to assume your VA loan, or by refinancing your existing loan.

What are the drawbacks of a VA loan?

While VA loans provide home buyers with many benefits, there are a few drawbacks to consider as well when going with this type of financing. Some of the primary drawbacks of VA loans include:

  • Must meet VA loan requirements: VA loans aren’t available to everyone. In order to use a VA loan, you must meet minimum service requirements and obtain your Certificate of Eligibility (COE). 
  • VA funding fee: Virtually all borrowers must pay the VA funding fee when using any type of VA loan. The VA funding fee helps support the VA loan program. Note that some individuals — such as those who have a service-related disability — are exempt from paying the VA funding fee. 
  • Cannot be used for investment properties: VA home loans can only be used to purchase primary residences, so you won’t be able to use this type of financing to purchase an investment property or vacation home. 
  • Properties must meet VA standards: In order to finance a home using a VA loan, the house must meet the VA’s minimum property requirements (MPRs). These requirements are in place to ensure the home buyer purchases a home that’s safe and sanitary, so they serve a good purpose. However, they can also limit the amount of homes you can consider and, in some cases, can prevent you from purchasing a fixer-upper. 

What is the current VA loan rate?

VA mortgage rates tend to be low when compared with other types of mortgages. This is because VA loans are backed by the government, and therefore lenders have the ability to offer better rates and terms. 

As far as specific VA loan rates are concerned, these will depend on a variety of factors. A borrower’s credit score, income level, DTI ratio, and assets can all have an impact on the rate they qualify for. Market conditions will also play a major role in dictating current VA loan rates. 

Reach out to Griffin Funding today to start the VA loan pre-approval process. Once you fill out an application, we can provide you with a VA mortgage rate that you can lock in.

Why would my VA loan application get denied?

VA loan applications can get denied for a variety of reasons. Some common reasons VA loans might get denied include:

  • Failure to meet minimum requirements: If you don’t meet the VA’s minimum service requirements, you won’t be able to qualify for a VA loan. Not sure whether you meet VA and lender requirements for a VA loan? Reach out to one of our mortgage specialists to review your eligibility. 
  • Application errors: A VA loan application can get denied due to application errors or a lack of required paperwork. Remember to double-check your loan application before submitting and reach out to Griffin Funding if you have any questions while filling out your application. 

Lack of income: VA loans require borrowers to provide proof of income during the application process. If you lack a consistent income or aren’t employed, it’s possible that your application could get denied. If you’re searching for self-employed mortgage options, make sure to check out the non-QM loans that we offer.