What is a VA loan?
VA loans help make homeownership more affordable for veterans and military personnel. They have competitive interest rates, no down payments for many veterans, low minimum credit score requirements, and no mortgage insurance, which make them a cost-effective option for veterans.
VA loans can help you buy a home, refinance a home, or get cash from your home’s equity to spend on renovations or education. They are backed by the Department of Veterans Affairs (VA) and offered by private lenders like Freedom Mortgage!
We can help you understand the benefits of VA loans and empower you on your homeownership journey.
* Freedom Mortgage was named the #1 VA lender by Inside Mortgage Finance, 2021.
VA Home Purchases
- Veterans, active-duty personnel, and surviving spouses can qualify
- Competitive interest rates
- 0% down payments for many VA homebuyers
- Minimum credit score as low as 550
- No mortgage insurance
- One-time funding fee for most veterans
VA Refinances ("IRRRL")
- Homes with existing VA loans can qualify for easier refinances
- Competitive interest rates
- Hassle-free process with less paperwork and faster closings
- Easy credit score qualification
- No mortgage insurance
- Low one-time funding fee for most veterans
VA Cash Out Refinances
- Get cash from the value of your home’s equity
- Homes with existing VA loans and other mortgage types can qualify if you are eligible for a VA loan
- Can finance up to 90% of home value
- Minimum credit score as low as 550
- No mortgage insurance
- One-time funding fee for most veterans
How much home can you afford?
When you’re thinking about buying a home, figuring out how much you can afford is a great first step. Use our home affordability calculator to get an estimate!
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Ask us what VA loan rate we can offer you
The VA rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what VA rate we can offer you.
What Our Customers Say
Check out the reviews from some of our customers.
Reviews and comments have been submitted by customers voluntarily and are solely their views. Customers were not compensated for their reviews/comments but were informed that they may be used in Freedom Mortgage Corporation marketing. Customer experiences are not meant to suggest future performance and may not be representative of your experience.
Learn more about VA loans
Our VA loan education articles answer your questions about how to buy a home, refinance a home, or get cash from your home equity with a VA loan.
Benefits of the VA home loan program
How VA loans make financing a house more affordable for veterans
VA loans for disabled veterans
Do disabled veterans qualify for VA loans?
How to refinance a VA loan
Answers to your VA refinancing questions
VA loans vs. conventional loans
Learn the differences between these mortgage choices
VA loan FAQs
VA loans are a type of mortgage loan backed by the U.S. Department of Veterans Affairs and offered by private lenders like Freedom Mortgage. VA loans can make homeownership more affordable for veterans, active-duty military personnel, and surviving spouses who qualify. VA loans have competitive interest rates, no down payments for many homebuyers, more flexible financial requirements compared to other loans, and no mortgage insurance. Learn more about requirements for VA loans.
Yes, you can get more than one VA loan, but you can generally only finance one home at a time. VA loan entitlement is a lifetime benefit for veterans, service members, and surviving spouses. VA loans can also be used to refinance a home. Read more about how many times VA loans can be used.
Yes, VA loans are often assumable and you do not need to be a veteran to assume a VA loan. You will need to meet credit, income, and financial requirements to be approved and you will need to pay a funding fee. Learn more about assumable mortgages.
Yes, you can refinance your VA loan using the VA streamline refinance (IRRRL) program. This program lets you lower your rate with less paperwork and a faster closing..
Yes, you can qualify to borrow cash from your home’s equity with a VA cash out refinance. You’ll need a reasonable amount of equity and you’ll need to meet your lender’s credit, income, and financial requirements to get approved.
There are many reasons to choose a VA loan over another type of loan:
- No / low down payment. Most VA loans don’t require as much down payment and some programs don’t require one at all. Making a larger down payment can lower your VA funding fee, save you interest over time and give your home equity a jump start. But no / low down payment VA loans give those without cash for a large down payment the chance to own their own home.
- Competitive interest rates. Rates for VA loans are competitive with rates for other loans.
- No mortgage insurance. VA loans do not require mortgage insurance like FHA and many conventional loans.
- Low credit score requirement. VA loans have a low credit score requirement. At Freedom Mortgage, we can often accept a minimum credit score as low as 550 for a VA loan.
- No loan limits. The Department of Veterans Affairs does not limit how much money you can borrow with a VA loan.
- No prepayment penalties. Some lenders charge fees for paying down your mortgage early. VA loans do not charge prepayment fees.
There are some scenarios where a VA loan may not be the right choice compared to an FHA or conventional loan:
- Funding fee. VA loans usually require borrowers to pay a one-time funding fee that helps protect the VA loan program if a borrower defaults. If you have enough money for a 20% down payment, you may be better off buying a house with a conventional loan and avoid paying a mortgage insurance fee or premium. Conventional loans can help you avoid paying funding fees if you refinance in the future.
- Primary residence only. VA loans can only be used to support a primary residence. They cannot be used for rental or investment properties.
- Appraisal process. Homes financed through VA loans need to meet specific appraisal guidelines before approval and must be evaluated by a VA-certified appraiser. Learn more about VA minimum property requirements.
- Spouse’s credit score. If you’re a married veteran and your spouse has a high credit score, you may want to consider another loan. For example, if the veteran (the qualifying party for a VA loan) has a credit score of 570, and the spouse / co-borrower has a credit score of 760, it might be better to apply for a different loan or have the spouse solely apply for a non-VA loan. If both of you have good credit, this is likely not a concern.
- Eligible service members only. VA loans are not available to every borrower. You must be an eligible service member to qualify.
The VA funding fee is a one-time fee required by the VA loan program. The fee helps protect the program in case a mortgage defaults. The VA funding fee amount varies depending on the type of VA loan you have, how much money you’re borrowing, and other factors. You can either pay the funding fee when your VA loan closes or you can roll the fee into your loan amount. Some disabled veterans and surviving spouses are exempt from paying this fee.
No, VA loans do not require private mortgage insurance (PMI) or other kinds of mortgage insurance payments. They do have a one-time funding fee that most borrowers will need to pay at closing or add to their loan amount however.
Typically, you are not required to make a down payment with a VA loan. This is part of what makes VA loans so affordable. However, it’s important to consider how your down payment affects your funding fee and interest payments. Read more about VA loan down payments.
VA loans come with closing costs which average between 2% to 5% of the home’s purchase price, according to U.S. News & World Report. These closing costs can include lender fees, discount points, the VA funding fee, and other fees. Read more about what goes into VA loan closing costs.
Yes, you can often roll many of your closing costs for VA loans into your loan amount. This means you pay off your closing costs over time through your monthly mortgage payments rather than paying them up front. When you choose to roll your closing costs into your VA loan, you will increase the amount of money you borrow as well as the amount of interest you will pay over the life of the loan.
Most lenders will allow you to pay off your VA loan early. Be sure to ask your lender if there’s a prepayment penalty included in your mortgage. A prepayment penalty could reduce the money you save by paying the loan off early. Freedom Mortgage does not charge prepayment penalties on VA loans.
Veterans, active-duty military personnel, surviving spouses, and members of the Reserves and National Guard can all be eligible for VA loans. There are typically a minimum number of service days required which vary depending on whether you served during wartime or peacetime. Learn more about VA loan eligibility.
A VA Certificate of Eligibility is a document that proves you are eligible to apply for a VA loan. You usually have to provide a copy of this certificate the first time you apply for a VA loan with a lender. When applying for a certificate, you’ll need to have your discharge papers or a statement of service. Learn more about how to obtain a VA Certificate of Eligibility.
You will need to complete an application and meet your lender’s credit, income, and financial requirements to get approved for a VA loan. Learn more about what’s involved when applying for a VA loan.
The VA does not have a minimum credit score requirement for VA loans, but asks lenders to set their own requirements. At Freedom Mortgage, our minimum credit score varies depending on the VA loan’s purpose. If you’re buying a home with a VA loan, we can usually accept a minimum credit score as low as 550. If you want to get cash from your home equity with a VA cash out refinance, we can typically accept a minimum credit score as low as 550. Read more about VA loan credit scores.
While other loan programs have limits on your income, the VA loan program does not have an income requirement. There are other requirements you will have to meet, like providing proof of income and other financial history information.
The VA loan program does not limit the amount of money you can borrow with a VA loan. However, lenders may still limit the loan amount they’re willing to offer based on your income, financial history, and other factors like your credit score. Read more about VA loan limits and entitlement.
Yes, VA loans require an appraisal. The appraisal must be from a VA-certified appraiser to determine if the home meets the VA’s Minimum Property Requirements. These requirements assess the home’s interior and exterior to ensure it’s safe to live in. The appraisal will also determine the home’s fair market value. Learn more about VA loan appraisal requirements.