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It’s an amazing loan, if you can get one. That’s what many loan officers say about the VA mortgage. This guide walks through the VA loan process, from eligibility to closing.
Margo Miller, who was a senior mortgage loan consultant at Mann Mortgage, LLC, in Salt Lake City, Utah, at the time of the interview, compares the VA loan with the USDA loan: “The USDA loan is somewhat close, but you have to have the right income for that one. There’s just nothing like the VA loan.”
This is the loan that allows no money down, no private mortgage insurance and low interest rates.
Check your VA home loan eligibility. Start here (Nov 8th, 2026)
What are the steps of the VA loan process?
But what is the process of getting a VA loan? First of all, you have to have suitable credit, sufficient income and be eligible for the loan. That means you are serving in the military now, or you are a veteran. Here are the main service rules VA looks at to decide whether you are eligible for a VA loan:
- Served at least 90 days of active service during wartime (most veterans who served after September 7, 1980, need 24 continuous months or the full period of their active-duty orders)
- Served 181 continuous days of active service during peacetime
- Have at least six creditable years in the National Guard or Selected Reserve, or at least 90 days of qualifying active-duty service
- Are the surviving spouse of a service member who died in the line of duty or as a result of a service-related disability (such as a Vietnam vet who died of lung cancer caused by Agent Orange, Miller says.)
“That last one does confuse people sometimes. We do get spouses all the time requesting VA loans. So, I have to ask them how the veteran passed away,” she explains.
Sometimes, the situation can be iffy, but she sends in the request anyways.
“They can make exceptions and give them eligibility. It doesn’t cost anything to send it in and have it reviewed. Over the years, I’ve been surprised who was eligible sometimes,” she says.
One of those exceptions to the rules is someone who served less than six years in the reserves or National Guard but received a discharge for a service-connected disability.
Choose an experienced loan officer
Miller works with all ages of veterans and their spouses to buy a home. But many of them tell her that their real estate agent or even the military never informed them of the VA loan. So, she suggests they find a loan officer who has a lot of experience handling these loans and can guide them through it all.
“Some lenders say VA loans take longer to process. But they just don’t know how to do it,” she says.
Get your COE, preapproval letter and real estate agent
Anyone seeking a VA Loan must have a Certificate of Eligibility (COE), which is a document explaining their VA entitlement through the Department of Veterans Affairs.
A loan officer familiar with the VA loans can help the borrower obtain the COE online quickly.
“It takes about five minutes. The longest it has ever taken was two weeks because of some complications,” Miller says.
Otherwise, the borrowers can seek it out themselves by visiting the VA website and filling out a request.
A loan officer can help get you started with a preapproval letter for your VA loan. It’s a lot of paperwork but worth the time to receive a zero-down loan, Miller states. You’ll need pay stubs, tax returns, employment history, bank and investment statements and any real estate asset information.
A preapproval letter shows your real estate agent that you have the finances to buy a home.
Finding a good real estate agent that understands VA loans or has worked with other VA loan recipients should be a priority, Miller says.
“A lot of them aren’t educated enough about these loans, and have myths about them,” she says. “Many think that VA loans are for those who don’t make any money. That is so not true. I just finished one with a veteran who is a doctor.”
Considerations with a VA loan
Check your VA home loan eligibility. Start here (Nov 8th, 2026)
One thing to think about when looking for that dream house is that the VA loan program does not impose a maximum amount that an eligible veteran may borrow. With full entitlement, VA guarantees 25 percent of the loan for loans above $144,000, and the lender decides how much to lend based on your credit, income and the appraisal. County loan limits now matter only to borrowers with reduced entitlement, when the lender works out the remaining bonus entitlement.
“It is usually very rare when lenders ask for a down payment. Getting a loan without a down payment is a benefit for them for serving our country,” Miller says. “But to get the loan approved, they might have to put in a down payment. They can’t go forward till the underwriting is approved. But that’s very rare.”
Once you find the home that you want to make your own, you make an offer. An educated real estate agent who knows about VA loans can structure the offer to make sure you can buy the house with no money down.
Appraisal and closing: the final steps in the VA loan process
The VA requires an appraisal of the home. The house must meet VA’s Minimum Property Requirements, which means it must be safe, structurally sound and sanitary. If something is wrong, the repairs must be finished before VA guarantees the loan, though the lender may hold funds in escrow to complete them after closing.
Once the lender approves everything, then it’s time for the closing which means you’ll get the keys to your home.
Closing costs vary with the loan amount, the property location and the lender’s fees. But the VA loan also helps out in that respect, too. There are certain fees that a lender cannot charge a veteran or military person. And a lender can choose to charge the borrower a flat origination charge of up to 1 percent of the loan amount. For example, 1 percent of a $200,000 loan is $2,000.
“A lot of lenders forgot about the VA loans. And you can use VA loans over and over again. Some can even have two VA loans at the same time,” Miller says. “Just don’t listen to your real estate agent or lender tells you to go conventional loan when you can go VA.”
Check your VA home loan eligibility. Start here (Nov 8th, 2026)
