VA Loan

Because of your service to our country, affording a home is made easier by the benefits of a VA loan. These benefits are available to active-duty members of the military, veterans and their surviving spouses.

A VA loan provides simple and flexible options, whether you’re buying your first home or buying a home and looking for the best terms. You may qualify for no down payment and lower-than-average interest rates, along with a lower minimum credit requirement.

What is a VA Loan?

You have a variety of options when choosing the right loan to buy a home. Loan types differ based on their qualification requirements and the terms they offer, such as the loan’s length, interest rate and minimum down payment amount.

A VA loan is backed by the government through the U.S. Department of Veterans Affairs. VA-approved lenders are insured by the government to cover risks if borrowers can’t pay back these loans.

Backed by the VA, lenders are able to offer VA loans with more flexible qualification requirements than conventional and FHA loans, including lower credit scores and competitive interest rates. These loans allow for no down payment and no mortgage insurance, making VA loans a popular option among first-time homebuyers. (An added feature is that a qualified VA loan holder can apply more than once.)

VA benefits are meant to help servicemembers, veterans and eligible surviving spouses finance the purchase of a home.

Let’s Get Your Loan Started

How to Get a VA Loan

To learn whether a VA loan is the best option for purchasing your home, connect with us at Compass Mortgage. To get you started, we’ve outlined the steps and documentation needed to help you understand the process.

The Financing Process

  • Homebuyers often start by . . .
    • Requesting a quote for their interest rate
    • Beginning a VA loan application with Compass Mortgage
  • As you inform us about your possible purchase, we will . . .
    • Obtain your credit report
    • Help apply for your VA Certificate of Eligibility (CoE)
    • Discuss your finances with you
    • Assess the value of the home you’re interested in purchasing
    • Arrange for a professional inspection of the home (to ensure it makes minimum property standards for a VA loan)
    • Determine the loan options and terms available to you
  • Detail the documents you will need for underwriting your loan


We’re with you through each step, leading to closing where we’ll finalize your affordable loan when you’re ready to purchase.

VA Requirements to Meet

These are the common requirements often needed to qualify for a VA purchase loan. If you have questions about these requirements, we’re here to help.

  • Certificate of Eligibility (CoE). Shows you are eligible for VA benefits.
  • Credit Score. Requirements vary based on several factors. In most cases, a credit score of 580 or higher qualifies. 
  • Debt-to-Income Ratio (DTI). At or below 60%. Shows how much of your monthly income goes to paying debt.
  • Income Information. You need to show proof of ongoing monthly income remaining after major debts and obligations are paid.
  • VA Funding Fee. You are obligated to pay this fee unless your particular circumstances allow it to be waived.
  • Primary Residence. This must be your primary residence, and it must meet the minimum property standards.

VA Loan FAQs

Financing a home is an important investment. It’s ok to have questions. We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.

  • VA, conventional and FHA loans all offer flexible financing options
  • VA loans differ from conventional loans because they’re insured by the U.S. Department of Veterans Affairs, avoiding some of the strict qualification requirements of a conventional loan
  • VA loans and FHA loans are backed by the government, offering competitive interest rates and down payment options along with more possibilities for those who have lower credit scores
  • VA loans have advantages of FHA loans, offering the potential of no down payment, no mortgage insurance, lower interest rates and lower minimum credit requirements.
  • VA loan eligibility is based on service with the armed forces of the United States and is proven with a CoE (Certificate of Eligibility) obtainable from the U.S. Department of Veterans Affairs. (The VA evaluates eligibility according to military status, years of service and service record.)
  • You may be eligible if you are . . .
    • A current, active-duty member of the U.S. armed forces OR
    • A military veteran OR
    • The spouse of a military service member (including a surviving spouse)
  • VA requirements that ensure that the house being financed is a good investment for all involved
  • Standards assess a home’s safety, security and soundness to determine if the house is safe, structurally sound and sanitary
  • Professional home inspection required which considers the property on which the home is built, the home itself and any other structures on the property
  • VA funding fee
    • A one-time cost
    • Varies according to your situation (such as if this your first VA loan, the amount of your down payment)
    • Typically amounts to between 1.4% and 3.6% of the loan amount
    • Can be paid up front or rolled into your monthly mortgage payment
    • Helps ensure VA mortgage loans are available for all eligible veterans
    • Can be waived (for Purple Heart recipients, veterans with service-related disabilities, surviving spouses of veterans in certain circumstances)
  • Other closing costs
    • Loan origination fees
    • Appraisal
    • Title insurance
    • Some of these and other closing costs can be included in the loan and added to your monthly mortgage payment
  • Seller payment
    • VA allows up to 4% of closing costs to be paid by the seller of the house you are buying
    • Can be an option if it helps everyone close the sale of the home
  • As long as you are eligible for a VA loan, you are entitled to VA mortgage benefits
  • You can use the benefit for your first home, then continue to use it for every home you purchase in the future IF you qualify
  • Can apply to using one CoE to qualify for two VA loans at the same time
  • Full eligibility is restored after a VA loan is paid off or the house is sold
  • Great for first-time homebuyers
  • Low credit scores accepted
  • Possible 0% down payment
  • Comparably low interest rates
  • Term length options
  • Fixed or adjustable interest rate
  • No monthly mortgage insurance

Compass Mortgage is ready to help VA-qualified mortgage applicants! Get in touch with us. We look forward to helping you apply!

Let’s Get Your Loan Started