VA Purchase Loan

As a current service member or veteran, you are entitled to a variety of benefits, including home loans. If you’re considering buying, building, or improving a home, you may be eligible for a VA purchase loan, with which you can save significantly during the process. You can even use a VA loan with no down payment. 

In addition to the inherent benefits of using a VA loan to build a house or purchase a new home, you can take advantage of competitive interest rates and a customer-centric approval process by getting a loan with United Executives.

What is a VA Purchase Loan?

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, 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, condo in a VA-approved project, manufactured home or lot.  
  • Build a home: You can build a home from the ground up, 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 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 580
  • 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 purchase loan guidelines, 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.

Think you qualify for a loan? Contact us today to find out!


How to Get a VA Purchase Loan

Applying for and receiving your VA purchase loan entails several steps:

    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 quote, which you can lock in at that time.  
    4. They may request additional information 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. 

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, but prior to 2020, there were limits to how much of a loan the VA will insure. Traditionally, the amount the VA would guarantee was compliant with the limits set by the Federal Housing Finance Agency—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 loan qualification requirements.

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 VA home 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 are 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. 

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—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. 

If you’re ready to build, buy, or improve your home with a VA purchase loan, call us at (626) 967-9000.

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