VA Loan FAQs
At Novum Home Loans, we understand the unique needs of military families. Our team is dedicated to guiding you through every step of the VA loan process with clarity, transparency, and genuine care.
VA loans are designed to help Veterans, active-duty service members, and military families achieve home ownership with powerful benefits and flexible requirements. This guide can help you understand more about VA loans, their unique benefits, who is eligible, and how the team at Novum Home Loans can help you reach your homeownership goals.
What is a VA Loan?
A VA loan is a mortgage backed by the Department of Veterans Affairs, design to help Veterans, active-duty service members, and eligible surviving spouses buy or refinance a home. It offers benefits like no down payment, competitive rates, and limited closing costs.
VA loans can make buying a home more affordable for eligible borrowers, but it’s important to work with a loan team experienced with VA borrowers. The team at Novum Home Loans will offer personalized support from from start to finish and ensure your home loan moves smoothly and on time
VA Loan Benefits
VA loans offer powerful benefits designed specifically for Veterans and military families. At Novum Home Loans, we’re here to help you understand and take advantage of these options so you can buy your home with confidence. Here are some of the primary benefits of using your VA eligbility:
No Down Payment Required
One of the biggest advantages of a VA loan is the ability to buy a home without making a down payment. Since one of the biggest hurdles to homeownership is saving for a down payment, this benefit can help Veterans and military families become homeowners sooner. It also means that you can use any savings you may have been planning to use towards your down payment for other needs.
Competitive Interest Rates
VA loans typically offer lower interest rates than many other loan types. Because they’re backed by the Department of Veterans Affairs, lenders can offer more favorable terms—meaning potential savings over the life of your mortgage.
Limits on Closing Costs
VA loan rules limit the closing costs Veterans can be charged, helping keep upfront expenses under control. Some fees can even be paid by the seller. At Novum, we ensure transparency so you know your costs from the start.
No Private Mortgage Insurance (PMI)
Unlike many low or no down payment loans, VA loans don’t require Private Mortgage Insurance, or an insurance premium you pay every month to protect your lender in the event of a default. This can save you hundreds of dollars each month, putting more money towards your home, future goals, or other things that matter.
Flexible Credit Requirements
VA loans are designed to expand access to homeownership for military families, so they offer more flexible credit guidelines than many conventional loans. This means we can often lend to Veterans with lower credit scores than someone looking at a conventional loan. Even if your credit history isn’t perfect, our team will work to find a solution for you.
Easy Refinance Options
VA loans offer peace of mind that you can take advantage of any interest rate drops in the future. With options like the VA IRRRL (Interest Rate Reduction Refinance Loan), VA loans make it simple to lower your rate with fewer costs and less paperwork.
Who is Eligible?
VA home loans are available to Veterans, active-duty service members, certain National Guard and Reserve members, and eligible surviving spouses. Eligibility depends on meeting minimum service requirements set by the Department of Veterans Affairs (VA), along with lender guidelines related to credit, income, and financial stability.
Generally, you may be eligible for a VA loan if you meet one of these service criteria:
- 90 consecutive days of active-duty service during wartime
- 181 consecutive days of active-duty service during peacetime
- Six years of service in the National Guard or Reserves
- 90 days under Title 32 orders (with at least 30 of those days served consecutively)
The VA also extends eligibility to certain surviving spouses of Veterans. This important benefit is designed to honor the service and sacrifice of military families by making home ownership more accessible and affordable.
At Novum Home Loans, we’re dedicated to helping you understand and confirm your eligibility. Our team can assist you in obtaining your Certificate of Eligibility (COE), the official document from the VA confirming you meet the guidelines. You don’t need to have this document in hand before starting the loan process—we’re here to guide you through every step.
If you have more questions about your eligibility, you can contact our team or read more in our VA Loan Eligibility Guide.
Different Types of VA Loans
VA Purchase Loan
As your trusted guide, we’ll help you secure a VA Purchase Loan that maximizes your no-down-payment benefit and delivers competitive rates. Our team will walk you through every step so you can buy your home with confidence.
VA Streamlined Refinance
Simplify your refinance with a VA IRRRL (Interest Rate Reduction Refinance Loan). We’ll help you lower your interest rate and monthly payments with minimal paperwork, making the process smooth, fast, and stress-free.
VA Cash-Out Refinance
Unlock your home’s equity to fund improvements, pay off debt, or cover other financial needs. We’ll guide you through accessing your home’s value safely and responsibly.
VA Energy-Efficient Mortgage
Finance energy-saving upgrades to improve your home’s efficiency and reduce utility costs. We’ll help you create a more sustainable, comfortable home while understanding your financing options.
VA Renovation Loan
Combine the cost of buying and improving a home into one loan with the VA Renovation option. We’ll guide you through financing repairs and upgrades, making move-in-ready a reality.
More VA Loan FAQs
What Is a VA Home Loan?
A VA loan is a mortgage backed by the Department of Veterans Affairs, designed to help Veterans, active-duty service members, and eligible surviving spouses buy or refinance a home with favorable terms like no down payment and competitive rates.
What Is the VA Funding Fee?
The VA funding fee is a one-time cost charged by the Department of Veterans Affairs to help keep the loan program running. It can often be financed into the loan amount and may be waived for some Veterans with service-connected disabilities.
Can I Use My VA Loan Benefit More Than Once?
Yes. VA loan benefits are reusable. Even if you’ve used a VA loan before, you may still be eligible to use the benefit again, depending on your remaining entitlement and other factors.
What is a Certificate of Eligibility (COE)?
Unlike many low or no down payment loans, VA loans don’t require Private Mortgage Insurance, or an insurance premium you pay every month to protect your lender in the event of a default. This can save you hundreds of dollars each month, putting more money towards your home, future goals, or other things that matter.
How do I get my COE?
The COE is a document from the VA confirming you meet service requirements for the loan. You don’t need to have it before starting your loan process—our team can help you request and obtain it quickly.
Can I Refinance a Non-VA Loan into a VA Loan?
Yes. Veterans can use a VA Cash-Out Refinance to replace a non-VA loan with a VA-backed loan. This option lets you refinance up to 100% of your home’s value in some cases, potentially securing better terms while accessing VA benefits like no PMI and competitive rates. Our team will help you understand if this is the right move for you.
How Long Does the VA Loan Process Take?
While timelines can vary, many VA purchase loans close in 30 to 45 days. Factors like appraisal, underwriting, and documentation can affect timing. At Novum Home Loans, we prioritize clear communication and proactive guidance to help ensure your process moves as quickly and smoothly as possible.
