What You Need Before You Apply for a VA Home Loan

Gather these documents before you start

You will need your Certificate of may be able to access (COE), a recent pay stub, your last two years of tax returns, and a list of your debts. Most lenders also want to see your credit report, which they pull themselves, so you do not need to order one. Have your Social Security number, current address, and employment history for the past two years ready when you call a lender.

If you are buying, you will also need the property address and the purchase contract once you have one. If you are refinancing, gather your current loan documents and the refinance quote from your lender. The lender will order the appraisal and title search themselves — you do not pay for these upfront.

Key Takeaways

• Your Certificate of may be able to access is the one document you cannot get around; order it from the VA before contacting a lender if you do not already have it.
• Lenders will ask for pay stubs, tax returns, and a debt list to verify your income and calculate how much you can borrow.
• A VA loan does not require a down payment or private mortgage insurance, but you will pay a one-time funding fee unless you are exempt.
• The funding fee goes into your loan balance, so you pay it over time rather than at closing.
• You can use a VA loan to buy a home, refinance an existing loan, or build a new house, but the rules differ slightly for each.

How to get your Certificate of may be able to access

Order your COE from the VA before you talk to a lender. You can request it online through VA.gov, by mail, or by phone at 1-888-442-4551. Online is fastest — you will have it in minutes if you have a Veterans Affairs account set up. If you do not have an account, creating one takes about 10 minutes.

You will need your Social Security number and date of birth. The VA will ask whether you served on active duty, in the Reserve, or in the National Guard, and the dates you served. If you are the surviving spouse of a veteran, you can order a COE under your spouse's service record — the VA will ask for their Social Security number and service dates instead.

Print the COE or save it as a PDF. Some lenders accept it by email; others want a paper copy. Ask your lender which format they prefer before you order it.

Understanding the funding fee and what it costs

The funding fee is a one-time charge that goes to the VA. It is not the same as an appraisal fee or title fee — those are separate costs the lender orders. The funding fee amount depends on whether you are buying or refinancing, whether you have a disability rating from the VA, and whether you are putting money down.

If you are buying a home with no down payment, the funding fee is typically 2.3 percent of the loan amount. If you put down 5 to 9 percent, it drops to 1.63 percent. Put down 10 percent or more and it falls to 1.23 percent. Refinancing has a lower fee — usually 0.55 percent. If you have a service-connected disability rating, you are exempt from the funding fee entirely.

The funding fee is added to your loan balance, so you do not pay it at closing. You pay it back as part of your monthly mortgage payment over the life of the loan. This means it costs you more in interest, but it keeps your closing costs down.

Income and debt requirements lenders check

Lenders will calculate your debt-to-income ratio (DTI) — the percentage of your gross monthly income that goes to debt payments. Most VA lenders want your DTI to be 41 percent or lower, though some will go to 50 percent if you have strong credit and savings. Your debt includes car loans, credit cards, student loans, child support, and the new mortgage payment the lender is considering.

Bring recent pay stubs showing your year-to-date income and your last two years of tax returns. If you are self-employed, bring two years of tax returns and a profit-and-loss statement for the current year. If you receive disability payments, Social Security, or military retirement pay, bring a recent statement showing the amount — the lender will count this as income.

The lender will also ask about any large deposits in your bank account in the past two months. If you received a gift for the down payment, you will need a letter from the person who gave it stating it is a gift and does not need to be repaid. The lender pulls your credit report themselves and looks for late payments, collections, and the total amount you owe.

What happens after you submit your documents

The lender will send your file to underwriting, where a different team reviews everything for accuracy and risk. They may ask follow-up questions — for example, if you had a late payment on your credit report, they may ask you to explain it in writing. This is normal and does not mean you will be turned down.

Underwriting usually takes three to five business days, though it can take longer if the lender needs more information from you or if you are buying and the appraisal is delayed. Once underwriting approves your loan, you move to the final step: the lender orders the title search and appraisal if they have not already, and schedules your closing.

At closing, you sign the loan documents and the promissory note. The lender will give you a Closing Disclosure at least three business days before closing — read it carefully and compare the numbers to what you were quoted. If something does not match, call the lender and ask about it before you sign.

Different checklists for buying, building, and refinancing

If you are buying an existing home, you need the purchase contract and the property address. The lender will order the appraisal to make sure the home is worth what you are paying. You do not need to do anything with the appraisal — the lender handles it. You will also need proof of homeowners insurance before closing.

If you are building a new home, the process is longer because the lender disburses money in stages as the builder completes each phase. You will need the builder's contract, the construction timeline, and the builder's license number. The lender will order appraisals at each stage to confirm the work is done. This type of loan takes longer to close — usually two to three months.

If you are refinancing, you need your current loan documents and the refinance quote from your new lender. You do not need an appraisal if you are doing a streamline refinance (also called an IRRRL), which is faster and cheaper because the VA already appraised the home when you bought it. A streamline refinance usually closes in two to three weeks.

Common reasons lenders ask for more information

Lenders often ask for written explanations if you have late payments, collections, or a gap in employment on your record. Write a short, factual explanation — for example, "I was laid off from March to June 2022 and missed two car payments during that time. I was rehired in July and have made all payments on time since." Do not make excuses; just explain what happened and what you did about it.

If you received a large deposit that is not from your employer, the lender will ask where it came from. If it was a gift, provide the gift letter. If it was a loan from family, the lender may count it as a debt and ask you to provide a letter saying it does not need to be repaid. If it was a bonus or tax refund, provide documentation.

If you changed jobs recently, bring an offer letter or a letter from your new employer confirming your start date and salary. The lender wants to know your income is stable. If you have been at your current job for less than two years, bring documentation of your previous job as well.

Frequently Asked Questions

Do I need a down payment for a VA loan?

No. VA loans do not require a down payment, which is one of their main advantages. You can borrow up to the full purchase price of the home. If you choose to put money down, it lowers your funding fee percentage, but it is not required.

What if I do not have my Certificate of may be able to access yet?

Order it from VA.gov before you contact a lender. You can request it online, by mail, or by phone. Online is fastest — you will have it in minutes if you have a Veterans Affairs account. Some lenders will start your file while you are waiting for the COE, but most want to see it before they pull your credit report.

Can I use a VA loan if I am still on active duty?

Yes. You can order your COE while you are still serving. You will need your service dates and Social Security number. Some lenders ask for a letter from your command confirming your rank and expected discharge date, but not all do — ask your lender what they need.

What if my credit score is low?

VA lenders typically want a credit score of 620 or higher, though some will work with scores as low as 580. If your score is lower, focus on paying down credit card balances and making all payments on time for the next few months before you apply. A higher score will lower your interest rate and may help you borrow more.

Do I need to be a first-time homebuyer to use a VA loan?

No. You can use a VA loan to buy your first home or your fifth home. You can also use it to refinance an existing VA loan or a conventional loan. The only limit is how many times you can use your benefit — most veterans have one full entitlement, though some have more if they paid back a previous VA loan in full.