Get Answers to Your VA Loan Questions

The following is a list of common VA loan questions

Veteran with spouseVA loans are a great option for veterans and military members looking to buy a home. VA loans offer a number of benefits, including no down payment and no private mortgage insurance. However, there are a few things to know about VA loans before you apply. This article will answer some of the most common VA loan questions.

Q. After active duty service, how is my qualifying income calculated?

A. After active duty, your qualifying income is calculated by taking your total gross income from all sources and subtracting any amounts that are not considered taxable income. This includes things like interest, dividends, capital gains, and other investment income. Once you have your taxable income figure, you can then subtract any taxes that you paid during the year. This will give you your net qualifying income for the year.

Q. Are gift funds allowed on a VA loan?

A. Yes, gift funds are allowed on a VA loan. The Department of Veterans Affairs allows for the use of gift funds to cover all or part of the down payment on a VA loan. In order to use gift funds, the veteran must provide a letter from the donor that states that the money is a true gift and not a loan. The donor must also sign a form stating that they do not expect to be repaid.

VA Loan Gift Funds: Use Gift Money for Your Loan Closing Costs

Q. Can I build a house with a VA loan?

A. Yes

Build a House with a VA Loan: One time close construction loan

Q. Can the children of a service member who is still alive or who has died get a VA loan?
A. No, children of veterans or service members who are qualified for VA home loan benefits are not eligible for these benefits.

Q. Do VA loans require a down payment?

A. No, VA loans do not require a down payment.

Q. Do VA loans require PMI?

A. No, VA loans do not require PMI. VA loans are backed by the Department of Veterans Affairs and do not require private mortgage insurance.

How to Get a VA Loan Without Paying Mortgage Insurance

Q. What are the VA loan limits?

A. The VA loan limit is the maximum amount a veteran can borrow for a home purchase. The limit varies depending on the county in which the home is located.

2022 VA Loan Limits: How Much House Can You Afford? 

Q. Can you have a cosigner on a VA loan?

A. Yes, a cosigner is allowed on a VA loan. The cosigner must be a veteran or military spouse, and must meet the credit and income requirements. The cosigner's role is to help the borrower qualify for the loan, and to share the responsibility for repayment. If the borrower fails to make payments, the cosigner is responsible for repaying the loan.

See Can a VA Loan Have a Cosigner?

Q. What is an earnest money deposit?

A.An earnest money deposit is a deposit made by a buyer to show that they are serious about buying a home.

How the Earnest Money Deposit Helps You Buy a Home

Q. What is a VA funding fee?

Nice suburban homeA. A VA loan funding fee is a mandatory fee that Veterans Affairs charges to guarantee a home loan. The funding fee helps cover the cost of guaranteeing loans and compensates lenders for the risk they assume when making a loan to a Veteran. Funding fees vary based on the amount of the down payment made by the Veteran, the type of loan, and whether the Veteran is using their entitlement for the first time or has used it before. 

Easily Calculate the VA Loan Funding Fee on a Mortgage 2022

Q. Does the VA require a home inspection?

A. There is no requirement for a home inspection when you are buying a house through the VA. However, it is always a good idea to have one done so that you know what you are getting into. It is also a good way to find out about any potential problems that may need to be fixed before you move in.

A. Home Inspection and Appraisal Requirements for a VA Loan 

Q. How do I get a VA loan?

A. To obtain a VA loan, you'll need to work with a lender who participates in the VA home loan program. You'll also need to obtain a Certificate of Eligibility from the VA, which establishes your entitlement to benefits. Once you've been approved for a loan, you'll typically need to provide proof of income, an appraisal of the property you're looking to purchase, and other documentation as required by the lender.

How Does Buying a Home With a Va Home Loan Work in 2022

Q. What are the VA Home Loan Eligibility Requirements?

A. There are a few eligibility requirements for VA home loans. First, you must have served in the military, or be the spouse of someone who has. Second, you must have a good credit history. And third, you must have enough income to afford the loan.

How Does the VA Home Loan Work? 

Q. Do I pay discount points for a VA loan?

A. When you take out a VA loan, you may be able to pay discount points in order to get a lower interest rate. Discount points are fees that you pay in order to get a lower interest rate on your mortgage. The amount of discount points that you pay will depend on the interest rate that is available at the time that you take out your loan. Generally, the more discount points that you pay, the lower your interest rate will be.

How to Buy Down Your Interest Rate With Mortgage Points

Q. Is a VA cash out refinance a good idea?

A. A cash-out refinance is a refinancing of a mortgage in which the new mortgage is for a larger loan amount than the outstanding balance on the original mortgage. The borrower takes the difference between the two amounts in cash. Cash-out refinancing can be a good idea if you require the money for a big purchase or to pay off high-interest debt.

Learn About the VA Cash-out Refinance Mortgage 2022 

Q. What is debt to income on a VA mortgage?

A. Debt to income on a VA mortgage is the ratio of your total monthly debt obligations to your gross monthly income. This includes all of your monthly debt payments, including your mortgage, car loans, student loans, and credit card bills. The lower your debt to income ratio, the more likely you are to be approved for a VA mortgage.

Learn How the Debt-to-income Ratio for a VA Loan Works in 2022

Q. What is per diem interest?

A. Per diem interest on a mortgage is the amount of interest that accrues on a mortgage on a daily basis. This the per diem interest accrues from the settlement date until the last day of the month.

Per Diem Interest Calculator for a Mortgage Loan

Q. Can a surviving spouse get a VA loan?

A. Yes, a surviving spouse can get a VA loan. The VA loan is a benefit that is available to eligible veterans and their spouses. The VA loan allows the veteran and his or her spouse to purchase a home with no down payment and no private mortgage insurance.

Surviving Spouse Requirements for a VA Loan

Manufactured home calculator 

Use our Free VA Loan Calculator for a Manufactured Home Loan.

Q. How soon can I pay off my mortgage with an extra payment?

A. VA Loan Amortization Calculator: Pay Less Interest on Your Loan 

Q. What closing costs do sellers pay on a VA loan?

A. Closing costs are a series of fees that both the buyer and seller pay to complete the sale of a property. On a VA loan, the seller typically pays for all of the closing costs, including the title insurance, appraisal, and escrow fees. This can be a significant savings for the buyer, who would otherwise be responsible for these costs.

VA Loan Closing Costs Paid by a Seller Concession

Q. Do VA loans have closing costs?

A. Yes, VA loans do have closing costs. These can include appraisal fees, loan origination fees, and title insurance, among other things.

VA Loan Closing Costs: How much will you pay? 

Q. Calculate VA loan payment

A. See VA monthly payment calculator

Q. What credit score is needed for a VA loan?

A. Although there is no set criterion for a minimum credit score to qualify for a VA loan, the majority of mortgage lenders require borrowers to have a FICO credit score of at least 620. Although consumers may have to satisfy more scrutiny and standards, some lenders are willing to issue loans with lower credit ratings.

VA Loan: Required Minimum Credit Score for a VA Home Loan 

Q. Do VA loans cover manufactured homes?

A. VA loans are available to veterans and service members and can be used to purchase a variety of types of homes, including manufactured homes. A manufactured home is a home that is built in a factory and then transported to its final location. VA loans can be used to purchase both new and used manufactured homes.

VA Loans for Manufactured Homes and Modular Home Loans 

Q. How much is my loan payment?

A. VA Mortgage Payment Calculator With Extra Payments

Q. Residual income explanation

A. Residual income is a calculation to determine whether the borrower has sufficient cash after purchasing a house.

VA Residual Income Requirement for a Home Loan

Q. What is a VA streamline refinance?

A. A VA streamline refinance is a refinancing option specifically for Veterans Affairs (VA) borrowers. The program allows veterans to refinance their current mortgage into a new loan with a lower interest rate, without having to go through the full loan application process. To qualify for the VA streamline refinance, borrowers must meet certain eligibility requirements, including being current on their mortgage payments and having a good credit score.

VA Streamline Refinance: Easy Interest Rate Reduction Loan 

Q. How much income do I need for a VA loan?

A. There is no set income amount required to qualify for a VA loan. However, the VA typically looks for borrowers who have a stable income and good credit history.

What Are the VA Loan Income Requirements for a Home Purchase? 

Q. What is the current VA loan interest rate?

A. What Are VA Loan Rates Today? 

Q. What is an amendatory clause?

A. This clause allows the veteran to unilaterally withdraw from the sales contract if the appraisal does not confirm the sales price.

What is a VA Amendatory Escape Clause? 

Q. How to get a certificate of eligibility (COE) for VA loan?

A. To get a certificate of eligibility for a VA loan, a veteran must provide the VA with proof of service. This can be done by providing a copy of the veteran's DD-214 or other military discharge papers. The VA will then review the information and issue the certificate of eligibility.

What is a VA Certificate of Eligibility for a VA Home Loan?



In conclusion, VA loans are a great option for those who are eligible. They offer many benefits, such as no down payment and no mortgage insurance. If you have any questions about VA loans, be sure to contact a lender for more information.

Chapter 8. Borrower Fees and Charges and the VA
Funding Fee

Recommended Reading
How To Qualify For A VA Loan As A Surviving Spouse
Points on a VA Loan: What Are They and How Do They Work?
Save Money on Your Mortgage by Amortizing Extra Payments