Military Affairs

Minimum service requirements

VA home loan benefits—no down payment, no mortgage insurance

One of the main benefits of the VA home loan is that it requires no down payment, which significantly reduces out-of-pocket expenses. This means you don’t have to spend years trying to save for a down payment while still paying rent. And that can make a big difference. If home prices are rising quickly in your area, you can buy right away. Now, you’re a homeowner who’s benefiting from higher prices—not a renter who’s locked out of homeownership by them.

Mortgage Insurance

As importantly, VA loans do not require continuing monthly mortgage insurance. Most other loan types require you to pay a significant amount each month to a private mortgage insurance company if you make a down payment of less than 20 percent of the purchase price. A VA loan eliminates that cost, freeing up that money for other expenses. To sustain the program and guarantee loans, a one-time VA funding fee is added to the loan amount. Fees range from 0% to 3.6%—yours will depend on the loan amount and type, your service history, and whether you’ve used your VA home loan benefits before.

What you’ll need to get your COE

If you’re an active-duty service member, you’ll need a statement of service “signed by (or by the direction of): the adjutant, personnel office, or commander of the unit or higher headquarters.” Your commanding officer should know the information to include in your statement of service. It should include the following information: · Your full name · Social security number · Date of birth · Entry date on active duty · The duration of any lost time · The name of the command providing the information.
If you’re a veteran, you’ll need your DD214 separation documents, which detail information regarding your military separation, retirement, or discharge. If you’ve misplaced your DD214 form, then you can order a replacement copy online.