VA Home Loan Mortgages Put Vets Right at Home

Posted May 20 2016
by PenFed Team
Man in Army uniform with family in front of a house

Since the 1940s, the U.S. government has rewarded the service of military personnel by guaranteeing mortgage loans at exceptional rates. The VA Home Loan program is designed to help veterans and their spouses land back in civilian life with both feet.

Benefits of a VA Mortgage

A VA-backed mortgage can get you into a home for less money up front and for less money over the long haul.

0% down. The days of being able to buy a house with no down payment are fading fast, but veterans may be eligible to buy at 0% down with a VA mortgage. If you haven’t been able to save up to get started, a VA mortgage could help you buy a home without a down payment.

No mortgage insurance. Another requirement that drives up the cost of buying a home is private mortgage insurance (PMI), which banks require for anyone buying a home with less than a 20 percent down payment. But since VA mortgages are backed by the U.S. Department of Veterans Affairs, you can check this requirement off your list and pay significantly lower monthly payments.

Eligibility Requirements for VA Mortgages

The following eligibility requirements do apply in order to qualify for a VA mortgage: you must have suitable credit, sufficient income, and obtain a valid Certificate of Eligibility (COE) from the U.S. Department of Veterans Affairs.

To obtain a COE, you must have been discharged under conditions other than dishonorable and meet at least one of the following service requirements:

  • You have served 90 consecutive days of active service during wartime.
  • You have served 181 days of active service during peacetime.
  • You have more than six years of service in the National Guard or Reserves.
  • You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

Benefits of Financing with PenFed

A 15-Year or 30-Year VA Fixed Mortgage loan from a lender like PenFed can give you long-term, stable payments, a free 60-day rate lock*, higher loan limits, the program benefit of a low or no down payment, and is available on both home purchases or refinancing.

Learn more about PenFed’s VA Fixed Mortgage lending programs by visiting their Home Ownership Center today.


*For purchase applications, please submit a copy of your fully signed ratified purchase agreement to in a timely manner to ensure PenFed can meet your closing date.

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