Using Your VA Home Loan: Step-by-Step and Requirements

Last updated: October 13, 2026

Requirements

• Service eligibility: common paths include 90 days of active service in wartime, 181 days in peacetime or 6 years in the Guard or Reserve. Qualifying Title 10 service or at least 90 days of qualifying Title 32 service (including 30 consecutive days) can also qualify. Service dates and discharge circumstances matter; a service-connected discharge and some surviving spouses may qualify. See VA.gov eligibility and Guard/Reserve requirements.
• Certificate of Eligibility (COE): request it on VA.gov or through your lender.
• Credit: the VA has no minimum score; lenders often look for about 580–620+, but each lender sets its own requirements. VA purchase loan requirements.
• Debt-to-income: 41% is a guideline, not a guaranteed approval limit, and lenders also evaluate residual income. VA Lenders Handbook.
• Occupancy: the home must be your primary residence, generally occupied within about 60 days; exceptions need lender review. VA occupancy guidance.
• $0 down, no VA loan limit with full entitlement, subject to lender approval and appraisal, and no PMI. VA loan limits.
• VA appraisal including the VA Minimum Property Requirements (MPRs). VA appraisal guidance.
• Seller concessions up to 4% of established reasonable value, separate from normal seller-paid closing costs. VA closing costs.

VA funding fee (purchase)

Veterans receiving VA disability compensation are exempt. The funding fee can be financed into the loan.

8 steps to closing

1. Get your Certificate of Eligibility (COE).
2. Get pre-approved with a VA-savvy lender.
3. Hire a VA-experienced agent.
4. Shop for homes.
5. Make an offer (ask for seller concessions up to 4%).
6. Inspection + VA appraisal.
7. Underwriting (no new credit or job changes).
8. Close and move in.

What you need for pre-approval

• COE, DD-214, or statement of service if active duty
• Photo ID and Social Security number
• Last 30 days of pay stubs or LES
• 2 years of W-2s and tax returns (self-employed: 2 years business returns + YTD P&L)
• 2 months of bank statements, all pages
• VA disability award letter, if any
• Other income documents (BAH, retirement, child support)
• Explanations for credit issues; divorce decree or bankruptcy papers if applicable
• Rental history or current lease

Pro tips

• Your entitlement is reusable — it isn't a one-time benefit.
• A pending disability rating may mean a funding fee refund later.
• PCSing to Fort Hood? Start your COE and pre-approval before you arrive.
• Only the funding fee can be financed; other closing costs must be paid or covered by concessions.

Want the local side? Read the Killeen neighborhood guide and the Fort Hood PCS guide. Official program details: VA.gov home loans and the Texas Veterans Land Board.

Entitlement basics

Entitlement is the VA guaranty available to support your loan, not a cash payment to you. Full entitlement removes the VA’s loan limit, but it does not remove lender approval or appraisal requirements. With a VA loan already outstanding, ask the lender to calculate remaining entitlement before you shop. VA entitlement and loan limits.

VA appraisal & Minimum Property Requirements

The appraisal evaluates value and the VA’s standards for a safe, sound and sanitary home. It is not a detailed inspection or a warranty. Order an independent inspection, review major systems and negotiate any required repairs before closing. Read the VA Lenders Handbook.

Seller concessions & closing costs

Normal closing costs and seller concessions are different categories. The VA’s 4% concession cap does not cap all seller-paid normal closing costs. Your offer should state the requested contribution clearly, and your lender must confirm what is allowed. For a purchase loan, only the VA funding fee can be added to the loan; other costs need another payment arrangement. VA funding fee and closing cost rules.

New construction incentives

Compare a builder’s incentive with the full price, rate, fees and construction schedule. A credit tied to a preferred lender is not automatically the best deal. Ask about completion dates, inspections, warranties and what happens if construction misses your PCS timeline. VA purchase loan options.

Texas Veterans Land Board

Texas veterans may also want to compare programs through the Texas Veterans Land Board. It is separate from the federal VA benefit, with its own eligibility and terms. Confirm current options directly with the Texas General Land Office and your lender.

Mistakes to avoid

• Shopping before a lender verifies your entitlement and budget.
• Treating an appraisal as a substitute for an inspection.
• Opening new credit, changing jobs or moving funds without discussing it with your lender.
• Ignoring taxes, insurance, HOA fees and maintenance when comparing monthly payments.
• Assuming builder completion dates or gate schedules cannot change.

For general information only, not a loan commitment. VA rules and lender requirements vary and can change. Funding fee rates per VA.gov. Talk to a VA lender about your situation. LeeRoy Kusto is not a lender. Last updated: October 13, 2026.