Summary of VA Home Loan 

Guaranty Benefits Buy, Build, 

Adapt, or Retain 

a Home

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VA helps Servicemembers, Veterans, 

and their families become homeowners. 

As part of our mission to serve you, we 

provide a home loan guaranty benefit 

and other housing-related programs to 

help you obtain, retain, or adapt a home 

for your own personal occupancy. 

VA-guaranteed loans are provided by private 

lenders, such as banks and mortgage companies, 

and not by VA directly. Through the VA Home 

Loan Guaranty Program, VA guarantees a portion 

of your loan against loss and helps lenders provide 

you with more favorable financing terms. 

VA home loans can benefit you in many ways:

» VA home loans often have lower interest rates 

and closing costs than conventional loans 

» You may not have to make a downpayment 

and mortgage insurance is not required 

» You do not have to pay a penalty if you pay 

off your VA home loan early 

» VA Loan Technicians can work with you to 

explore all options to avoid foreclosure if 

you are having difficulty making payments. 

Call VA at 877-827-3702 to speak to your

nearest Loan Technician

If you are eligible for a VA-guaranteed home 

loan, you can use the loan to: 

» Buy a home or residential condominium 

» Build a home 

» Simultaneously purchase and improve a home 

» Refinance an existing non-VA loan 

» Refinance an existing VA loan to reduce the 

interest rate 

» Buy a manufactured home to be permanently 

affixed to a lot already owned or buy a 

manufactured home and lot to which the 

home will be permanently affixed 

Obtain energy efficient improvements, such 

as solar heating

Access Your VA Benefits

Go to eBenefits at www.ebenefits.va.gov, 

your one-stop shop to learn about and apply 

for your benefits.

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Eligibility. To be eligible for a VA-guaranteed loan, you must meet credit and income standards and have 

a valid Certificate of Eligibility (COE). The home must be for your own personal occupancy. You must have 

been discharged under conditions other than dishonorable and meet these service requirements:

Qualifying Wartime & 

Peacetime Periods

Qualifying Active Duty Dates Minimum Active Duty 

Service Requirements

Veterans

WWII 9/16/1940 – 7/25/1947 90 total days

Post-WWII 7/26/1947 – 6/26/1950 181 continuous days

Korean War 6/27/1950 – 1/31/1955 90 total days

Post-Korean War 2/1/1955 – 8/4/1964 181 continuous days

Vietnam War

8/5/1964 – 5/7/1975

* For Veterans who served in the 

Republic of Vietnam, the beginning 

date is 2/28/1961

90 total days

Post-Vietnam War 5/8/1975 – 8/1/1990 181 continuous days

24-month rule

9/8/1980 – 8/1/1990

* The beginning date for officers is 

10/16/1981

» 24 continuous months, OR

» The full period (at least 181 days) for 

which you were called or ordered to 

active duty

Gulf War 8/2/1990 - Present

» 24 continuous months, OR

» The full period (at least 90 days) for 

which you were called or ordered to 

active duty

Active Duty 

Servicemembers N/A N/A 90 continuous days

National Guard & 

Reserve Members Gulf War 8/2/1990 - Present 90 days of active service

Six years of service in the Selected Reserve or National Guard, AND

» Were discharged honorably, OR

» Were placed on the retired list, OR

» Were transferred to the Standby Reserve or an element of the Ready Reserve 

other than the Selected Reserve after service characterized as honorable, OR

» Continue to serve in the Selected Reserve

*If you do not meet the minimum service requirements, you may still be eligible if you were discharged due to 

(1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) 

a service-connected disability.

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VA-GUARANTEED HOME LOANS

VA offers three home loan guaranty programs for 

Active Duty Servicemembers, Veterans, National 

Guard members, Reserve members, and certain 

surviving spouses. There are three loan types:

» Purchase Loan

» Streamline Refinance Loan

» Cash-Out Refinance Loan 

Purchase Loan. A Purchase Loan can help 

you purchase a home at a competitive interest 

rate. Generally, you do not have to make a 

downpayment or buy mortgage insurance to 

obtain a purchase loan. 

Streamline Refinance Loan. With the VA Streamline 

Refinance Loan (also called the “Interest Rate 

Reduction Refinance Loan” or IRRRL) you can obtain 

a lower interest rate by refinancing your existing 

VA loan. You can also refinance a VA adjustable rate 

mortgage (ARM) into a fixed rate mortgage. 

Cash-Out Refinance Loan. If you want to cash out 

your home equity so you can pay other debt, pay for 

school tuition, or make home improvements, then 

VA’s Cash-Out Refinance Loan may be an option. 

The Cash-Out Refinance Loan can also be used 

to refinance a non-VA loan into a VA loan. VA will 

guaranty loans up to 100% of the value of your home.

Certificate of Eligibility. In order to qualify 

for a VA backed loan you must obtain a 

Certificate of Eligibility (COE) from VA that 

verifies you or your spouse’s military service. 

The easiest way for you to obtain a COE is 

through www.ebenefits.va.gov. Your lender 

can also obtain your COE online through the 

internet based application, WebLGY.

Loan Limits. VA does not set a cap on how much 

you can borrow to finance your home. However, 

there are limits on the amount of liability VA can 

assume, which usually affects the amount of 

money an institution will lend you. These loan 

limits vary by county, since the value of a house 

depends in part on its location.

VA guarantees a maximum of 25% of the VA county 

loan limit for loans over $144,000. To view VA’s 

maximum guaranty amount for your property 

location, check out the current list of county loan 

limits at www.benefits.va.gov/homeloans.

Funding Fees. Generally, Veterans using the 

VA Home Loan Program must pay a funding fee 

required by law. The funding fee varies based 

on the type of loan and your military category, if 

you are a first-time or subsequent loan user, and 

whether you make a downpayment. 

You do not have to pay the funding fee if you are: 

» A Veteran receiving VA compensation for a 

service-connected disability, OR

» A Veteran who would be entitled to receive 

compensation for a service-connected disability 

if he or she were not receiving retirement or 

active duty pay, OR

» A surviving spouse of a Veteran who died in 

service or from a service-connected disability, OR

» A Veteran rated eligible to receive VA disability 

compensation based on a predischarge rating and 

examination, or a rating based on existing medical 

evidence, such as treatment or service records.

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NATIVE AMERICAN DIRECT LOAN 

(NADL) PROGRAM

The NADL program helps eligible Native American 

Veterans finance the purchase, construction, or 

improvement of homes on Federal Trust Land, or 

to reduce the interest rate on an existing NADL. 

You can use these direct loans to simultaneously 

purchase and improve a home or to refinance 

another VA direct loan made under NADL to lower 

the interest rate. 

These loans are only available if a memorandum 

of understanding exists between the tribal 

government organization and VA. Veterans who are 

not Native American, but who are married to Native 

American non-Veterans, may be eligible for a direct 

loan under this program. To be eligible, the qualified 

non-Native American Veteran and the Native 

American spouse must reside on Federal Trust Land.

ADAPTIVE HOUSING GRANT PROGRAMS

If you are a Servicemember or Veteran with 

certain permanent and total service-connected 

physical disabilities you may be entitled to grant 

funds, which can help enable or maintain your 

independence. Three different grant types can be 

used to purchase or construct an adaptive home, 

or to modify an existing home to meet your 

needs. If you already own an adapted home and 

have an existing mortgage, you may be able to use 

grant funds toward that balance. The following Grant 

Type table provides an overview of VA’s adaptive 

housing grant programs for Servicemembers and 

Veterans with certain service-connected disabilities.

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VA Housing Grant 

Types & Eligibility 

Requirements

Eligibility Living 

Situation Ownership Number of Grants You Can Use

Specially Adapted 

Housing 

(SAH) Grant

» Loss of or loss of use of both legs, OR

» Loss of or loss of use of both arms, OR

» Blindness in both eyes having central visual 

acuity of 20/200, plus loss or loss of use of 

one leg*, OR

» The loss of or loss of use of one lower leg 

together with residuals of organic disease 

or injury, OR

» The loss of or loss of use of one leg together 

with the loss of or loss of use of one arm, OR

» The loss of or loss of use of one leg, severely 

affecting the functions of balance or 

propulsion**, OR

» Certain severe burns, OR

» Certain severe respiratory injuries

Permanent Home is owned by an 

eligible individual 

» Maximum of 3 grants, up to 

the maximum dollar amount 

allowable

» One additional grant if the 

home is destroyed or damaged 

by natural disaster ***

Special Housing 

Adaptation (SHA) 

Grant

» Blindness in both eyes having central visual 

acuity of 20/200, plus loss or loss of use of 

one leg*, OR

» Loss of or loss of use of both hands, OR

» Certain severe burn injuries, OR

» Certain severe respiratory injuries

Permanent

Home is owned by 

an eligible individual 

or family member

» Maximum of 3 grants, up to 

the maximum dollar amount 

allowable

» One additional grant if the 

home is destroyed or damaged 

by natural disaster ***

Temporary 

Residence 

Assistance 

(TRA) Grant

Based on eligibility for SAH or 

SHA grant

Temporary

Home is owned 

by an eligible 

individual’s family 

member

» Maximum of 1 grant

» Currently counts against 

maximum dollar amounts 

allowable under SAH or SHA 

grants and as one of the three 

allowable uses

» Effective 08/06/2013 grant use 

will not count against maximum 

dollar allowable amounts under 

either SAH or SHA

Grant assistance amounts are set by law, but may 

be adjusted upward annually based on a cost-ofconstruction index. Except as noted in the table, 

individuals may not use the grant benefit more than 

three times. The amount of the three grants may not 

exceed the maximum amount in aggregate. 

For additional information on the SAH/SHA grant 

programs please visit 

www.benefits.va.gov/homeloans.

How to Apply. To apply for a grant, fill out and 

submit the Application in Acquiring Specially 

Adapted Housing or Special Home Adaptation Grant 

(VA Form 26-4555). You can access this form by: 

» Applying online via www.ebenefits.va.gov, 

your one-stop shop to apply for and learn about 

your benefits

» Downloading the form at www.va.gov/forms 

» Calling VA toll free at 1-800-827-1000 to have a 

claim form mailed to you

» Visiting the nearest VA regional office. To find the 

VA regional office nearest you, go to our website 

or call VA toll-free at 1-800-827-1000

*Effective 10/01/2012 **Effective 08/06/2012 through 09/30/2013 ***Effective 08/06/2013

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VA adopted five core values that define “who we 

are,” our culture, and how we care for Veterans, 

their families, and other beneficiaries. The values 

are Integrity, Commitment, Advocacy, Respect, 

and Excellence (I-CARE).

I CARE

DEPARTMENT OF VETERANS AFFAIRS

Frequently Asked Questions

How do I apply for a VA-guaranteed loan?

First, you need to get a Certificate of Eligibility (COE) from VA to prove to the lender that you are 

eligible for a VA loan. Then you can apply for a VA-guaranteed loan through any mortgage lender 

that participates in the VA Home Loan Guaranty Program.

Where can I get my COE?

Typically, you can apply for a COE through www.ebenefits.va.gov. However, in some cases, your lender 

may be able to establish your eligibility and obtain your COE online in seconds through the Internet-based 

application WebLGY. Ask your lender about using this method to obtain a COE.

I have already obtained one VA loan. Can I get another one?

Yes, in some cases. Normally, if you have paid off your prior VA loan and disposed of the property, you 

can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have 

your eligibility restored if your prior VA loan has been paid in full, but you still own the property. 

VETERANS’ MORTGAGE LIFE 

INSURANCE (VMLI)

Veterans’ Mortgage Life Insurance (VMLI) is 

mortgage protection insurance that can help a 

disabled Veteran’s family by paying off the home 

mortgage in the event of the Veteran’s death. 

Eligibility. VMLI is only available to Veterans with 

severe service-connected disabilities who:

» Received a Specially Adapted Housing (SAH) Grant 

from VA for assistance in building, remodeling, 

or purchasing an adapted home, AND

» Have the title to the home, AND

» Have a mortgage on the home

Veterans must apply for VMLI before their 70th 

birthday. 

VMLI protection is issued automatically following 

SAH approval, provided you submit the 

information required to establish a premium and 

do not decline coverage. Coverage automatically 

terminates when the mortgage is paid off. If 

your mortgage is disposed of through sale of the 

property, you can obtain VMLI on the mortgage of 

another home.

Premiums. VMLI premiums vary according to your 

age, the outstanding balance of your mortgage 

at the time you apply, and the remaining length 

of the mortgage. VMLI premiums must be paid by 

deduction from your monthly compensation.

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U.S. Department of Veterans Affairs

Veterans Benefits Administration

Washington, DC 20420

T 800-827-1000

www.va.gov/benefits

For More Information

For more information about VA’s home 

loan guaranty benefits, including 

eligibility and applying, please: 

» Find links to VA benefits information and apply 

at www.ebenefits.va.gov 

» Visit us at www.benefits.va.gov/homeloans

» Use IRIS, VA’s tool to find information and ask 

questions online at https://iris.custhelp.com

» Visit the nearest VA regional office. To find the 

VA regional office nearest you, go to our website 

or call VA toll free at 1-800-827-1000 

Additional VA Benefits

Disabilities determined by VA to be related to 

your military service can lead to monthly nontaxable compensation, enrollment in the VA 

health care system, a 10-point hiring preference 

for federal employment, and other important 

benefits. Ask your VA representative or Veterans 

Service Organization (VSO) representative about 

Disability Compensation, Pension, Health Care, 

Caregiver Program, Vocational Rehabilitation and 

Employment Services, Educational Assistance, Home 

Loan Guaranty, Insurance, and/or Dependents’ 

and Survivors’ Benefits. You can search for a VSO 

representative online at www.ebenefits.va.gov. 

Thank you for your service. 

Now let us serve you.

VA PAM 26-12-1

September 2012

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