Buying a home with a VA-backed loan | Veterans Affairs (2024)

Go over your credit profile, income, expenses, and monthly budget to make sure you’re ready to buy a home. Decide how much you want to spend on a mortgage—and be sure to include closing costs in the overall price.

To learn more:
Find out current VA home loan limits
Read about the VA funding fee and other loan closing costs
Get more advice from the Consumer Financial Protection Bureau (CFPB)
Use CFPB’s mortgage calculator

Remember, you’ll go through a private bank, mortgage company, or credit union—not through us—to get your loan. Lenders offer different loan interest rates and fees, so shop around for the loan that best meets your needs.

Be prepared to pay lender fees. Many lenders charge Veterans using VA-backed home loans a 1% flat fee (sometimes called a “loan origination fee”). Lenders may also charge you additional fees. If you don’t know what a fee is for, ask the lender. In some cases, lender fees are negotiable.

To learn more:
Read about the VA funding fee and other closing costs

Get recommendations for potential real estate agents online or from relatives, friends, and neighbors. Then meet with several agents to find one you like.

Read all agreements before signing with an agent. Make sure you understand any charges, fees, and commissions as well as your rights and obligations in the buyer-agent relationship.

Be sure the sales contract includes the “VA escape clause” or “VA option clause.” This provides an option to void the contract if the property doesn’t appraise for the contract price.

Ask your real estate agent for advice on other options for voiding the contract you may want to include, such as if the property fails a home inspection. These options are called contingencies.

To learn more, watch this helpful video:
Using your VA home loan benefit: working with a Realtor and lender

We strongly recommend that you get an inspection to check for any major defects before you purchase your home. A VA-approved appraiser will also appraise the house to make sure it meets basic property condition requirements (called minimum property requirements, or MPRs), and will provide an opinion of value on the house. Please note that an appraisal isn’t the same as an inspection.

If the property doesn’t appraise at a value that’s high enough to get the loan, you have a few options. You can:

Your closing may be held at a title company, escrow office, or attorney’s office. Be prepared to sign a lot of documents—and be sure to take the time to read everything before you sign.

To learn more:
Go to Fannie Mae’s website