Everything You Need To Know About VA Loans

If you are a military veteran, an active-duty service member, or an eligible surviving spouse, you may qualify for a VA loan*—a home mortgage backed by the Department of Veterans Affairs (VA). This loan type is designed to make homeownership more accessible and affordable for military service members and their families.

If you want to learn more about this loan option and how it can help you achieve your dream of homeownership with less financial strain, this Ameris Bank blog article is for you. It explains what VA loans are and how they work.

History of VA Loans

Extended deployments and relocations often make it challenging for U.S. military members to build credit history, grow personal savings, and achieve financial stability. As a result, when these dedicated individuals complete their service and transition into civilian life as proud veterans, they often face barriers to accessing financial products such as home mortgages.

To help military veterans become homeowners, the Department of Veterans Affairs (VA) created the Home Loan Guaranty Program as part of the Servicemen's Readjustment Act of 1944, commonly known as the G.I. Bill of Rights. Since its inception, the VA has guaranteed over 29 million home loans totaling $4 trillion.¹

The VA doesn't issue home loans; instead, commercial banks, credit unions, and independent mortgage companies do. The VA guarantees a portion of the loan, which allows lenders to offer more favorable terms.

Benefits of VA Loans

VA loans offer several key benefits that make them an appealing choice for homebuyers. Here they are in more detail.

Up to 100% Financing: One major benefit of VA loans is that they offer up to 100% financing of the appraised home value, meaning you can buy a home without a down payment. This is especially helpful if you haven't been able to save much while on military duty.

Competitive Interest Rates: VA loans generally offer lower interest rates compared to conforming or FHA mortgages. As of October 21, 2026, the average interest rate for a 30-year VA loan was 6.598%, while the average rate for a 30-year conforming loan was 7.304%, and the rate for an FHA loan was 7.113%.² Lower interest rates can lead to reduced monthly payments, which can help you save money over the life of the loan.

No Need For Private Mortgage Insurance (PMI): VA loans don't require borrowers to pay private mortgage insurance (PMI), which conventional loans typically require when the down payment is less than 20% of the home's purchase price. By eliminating the need for PMI, VA loans can save you money each month and reduce your overall costs over the life of the loan.

Closing Cost Limits: Mortgage closing costs, which may include loan origination fees, appraisal fees, title insurance, and recording fees, are necessary to process a home loan and legally transfer property ownership. With VA loans, there are limits to how much lenders can charge for these and other related closing costs. Additionally, sellers can cover all of a buyer's VA loan closing costs and provide up to 4% of the loan amount in concessions.

Flexible Uses: VA loans can be used to purchase eligible residential properties, including single-family homes and condominium units in VA-approved developments. VA financing may also be available for refinancing, home renovations, and energy-efficient improvements. Homeowners with an existing VA loan may also qualify for an Interest Rate Reduction Refinance Loan (IRRRL) to lower their interest rate. 

VA Loan Qualification Requirements

To qualify for a VA-backed home loan, you must meet requirements set by both the Department of Veterans Affairs (VA) and your lender. First, you must be a military veteran, an active-duty service member, or a current or former member of the National Guard and Reserves. Surviving spouses are also eligible for VA loans.

Next, you will need to obtain a Certificate of Eligibility (COE) to present to your lender. The COE verifies your service history and duty status. If you are the surviving spouse of a military member, you will also need a COE. You can apply for a COE online through the VA website,³ by mail using VA Form 26-1880,⁴ or have a VA-approved lender obtain it for you.

Finally, you must meet the credit, income, and occupancy requirements set by both the VA and your lender. These criteria are generally less strict than those for borrowers applying for a conventional home loan.

How to Apply For a VA Loan

You can get a VA loan through a lender of your choice. When evaluating lenders, look for one that is VA-approved and has notable VA loan volume, such as Ameris Bank. Choosing a lender with expertise and experience handling VA loan applications can streamline the process.

To apply, you will need a Certificate of Eligibility (COE), a copy of your discharge or separation papers, or a Statement of Service (if you are active duty). If you are a surviving spouse, you will need a copy of your marriage license and VA Form 21P-534EZ, which you can request on the U.S. Department of Veterans Affairs website.⁵

You will also need personal documents (e.g., valid driver's license or passport), financial documents (e.g., bank statements, pay stubs, tax returns), and the signed real estate purchase agreement. This is only a partial list of the information and documentation required, so consult your lender for the complete list.

Conclusion

If you're looking to get a VA home loan, Ameris Bank is with you. We provide expert guidance and support to ensure you understand the benefits and requirements of VA loans. Contact us today to speak with a mortgage banker and get started on your VA loan application.

¹ https://news.va.gov/press-room/va-guarantees-29-millionth-home-loan/

² https://www2.optimalblue.com/obmmi

³ https://www.va.gov/housing-assistance/home-loans/request-coe-form-26-1880/introduction

⁴ https://www.va.gov/forms/26-1880/

⁵ https://www.va.gov/forms/21p-534ez/

*All loans subject to approval. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.