Veterans Housing Benefits Guide

From one veteran to another: Check your VA loan options before assuming you need a large down payment. Then compare the full cost with your budget. A benefit is useful only if the payment works for you.

VA Loan Program

Overview

VA-backed loans may allow a purchase without a down payment and do not require monthly mortgage insurance. You still need the required credit and income, and some purchases require money down. A Certificate of Eligibility does not replace lender approval. See VA home loan guidance.

For VA-backed loans, a private lender makes the loan and VA guarantees part of it. VA also offers a separate Native American Direct Loan program; see the loan types in the official guidance above.

Eligible Uses

• Home, manufactured home, or condominium purchase
• Manufactured home lot acquisition
• Construction, repair, or home improvement projects
• Refinancing existing VA loans through IRRRL programs

Eligibility Requirements

Veterans: Must meet criteria outlined at VA.gov eligibility page

Surviving Spouses: Eligible if the veteran was: - Missing in action or POW - Died during service or service-connected disability - Totally disabled before death - Didn't remarry (or remarried after age 57 post-December 16, 2003)

Note: Remarriage annuls eligibility unless it ends, restoring benefits.

Certificate of Eligibility (COE)

Veterans obtain COE through: - Online via VA.gov - Web LGY system (via lender) - Mail submission of VA Form 26-1880

Surviving Spouses (if receiving DIC): - Submit VA Form 26-1817 with Veteran's DD214 - Send to lender or VA Regional Loan Center

Without DIC: Must first apply for benefits using VA Form 21P-534EZ

Funding Fee

"To help offset the cost of this program to taxpayers, the VA uses a funding fee."

The fee depends on the loan type and other factors. Exemptions include receiving service-connected disability compensation; eligibility for that compensation while receiving retirement or active-duty pay instead; surviving spouses receiving DIC; qualifying proposed or memorandum ratings before closing; and active-duty Purple Heart recipients who provide evidence by closing. Ask your lender to confirm your exemption and closing costs using VA's funding-fee guidance.

The Home Purchase Process

1. Obtain Certificate of Eligibility
2. Compare lender mortgage rates
3. Secure pre-approval letter
4. Hire real estate agent
5. View properties; make purchase offer
6. Include "VA escape clause" protecting earnest money if appraisal fails
7. Lender issues additional paperwork; verifies finances
8. Closing: sign documents, pay fees
9. Ownership transfer completed

Critical Warning: Verify wire transfer instructions via phone to prevent fraud.

Loan FAQs

Multiple Uses: Unlimited VA loan uses permitted

Simultaneous Loans: Possible when relocating; loan limits may require down payments on second property

Geographic Scope: USA only (includes territories: Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands)

Earnest Money: Demonstrates buyer seriousness; forfeited if backing out without contractual clause; returned with appropriate exit clauses; credited toward purchase if transaction completes

Interest Rate Reduction Refinance Loan (IRRRL)

Purpose

Refinance existing VA loans to lower interest rates or convert variable rates to fixed rates.

Key Considerations

• Closing costs must be paid by borrower (typically thousands)
• VA funding fee may apply again
• PMI remains unnecessary

Requirements

• Current VA loan holder
• IRRRL refinances VA loan only
• Currently or previously lived in property
• Minimum 210 days since first mortgage payment

Process

1. Research and select lender
2. Provide requested financial information
3. Complete lender's closing procedures; pay applicable fees

Veterans Affairs Servicing Purchase (VASP): closed to new submissions

VA ended new VASP submissions on May 1, 2025. The former program is not an available application route for new borrowers.

If you are having trouble making mortgage payments, contact your loan servicer and use VA's current mortgage assistance guidance to find the right help. Ask which options your servicer currently offers and what requirements apply.

VA's current guidance also lists the Partial Claim Program. Ask your servicer whether it is available for your loan and what trial-payment requirements apply. Servicers have until November 28, 2026, to add partial claims to their systems; availability should not be assumed. See VA foreclosure assistance, checked September 11, 2026.

Source: VA VASP closeout FAQs, reviewed September 9, 2026. This correction concerns VASP; it is not a full review of the other program details in this legacy guide.

Specially Adapted Housing (SAH) Grants

For veterans with certain severe service-connected disabilities who need home modifications.

SAH Grant

• For veterans with loss of or loss of use of both lower extremities, blindness, or loss of upper extremity
• Maximum grant amount changes annually (check VA.gov for current rates)
• Can be used up to 6 times

SHA (Special Housing Adaptation) Grant

• For veterans with less severe disabilities
• Lower maximum than SAH
• Can be used up to 6 times

TRA (Temporary Residence Adaptation) Grant

• For veterans living temporarily in family member's home
• Available while permanent housing is arranged

Editorial scope: Loan overview, funding-fee exemption summary and current foreclosure-assistance link checked September 11, 2026. Other legacy eligibility, refinancing and grant details still require review before release.