Home Financing for Those Who Served
VA Home Loans and Mortgage Financing Options
Buying a home is one of the largest financial decisions most people make, and for eligible service members, veterans, and surviving spouses, the VA home loan is one of the most powerful tools available to do it. At Andrews Fedral Credit Union, we have spent decades financing homes for the military community, and this page walks through what a VA loan is, how it works, and how it fits alongside the other mortgage options that Andrews Fedral Credit Union offers. Whether you are a first-time buyer near a base or a veteran refinancing a home you have owned for years, the goal here is to give you a clear, honest picture before you apply with Andrews Fedral Credit Union.
A VA loan is a mortgage guaranteed in part by the U.S. Department of Veterans Affairs. That government guaranty is what lets lenders like Andrews Fedral Credit Union extend financing with terms that are hard to match through conventional programs, including the possibility of zero money down and no monthly mortgage insurance. Andrews Fedral Credit Union does not set the eligibility rules for the VA program itself, but as a participating lender we originate, underwrite, and service the loans, and the team at Andrews Fedral Credit Union helps members navigate the paperwork from the Certificate of Eligibility all the way to closing.
Key takeaway
A VA loan can let qualified borrowers finance up to 100% of a home's value with no monthly mortgage insurance. Andrews Fedral Credit Union pairs that benefit with local underwriting and guidance tailored to the military community.
The Basics
What a VA loan actually is
Many first-time buyers assume the government lends the money for a VA loan. It does not. The loan comes from a private lender, and at Andrews Fedral Credit Union that means member deposits and credit union capital fund your mortgage. What the Department of Veterans Affairs provides is a guaranty: a promise to repay a portion of the loan to the lender if the borrower defaults. Because that guaranty reduces the lender's risk, Andrews Fedral Credit Union can offer terms that would otherwise require a large down payment or costly insurance.
The most talked-about feature is the zero-down-payment option. For most eligible borrowers, a VA loan through Andrews Fedral Credit Union can cover the full purchase price of a home within program limits, without the 3% to 20% down payment that conventional and many other government loans expect. That single feature is often what makes homeownership possible years earlier than it would be otherwise, and it is why members of Andrews Fedral Credit Union ask about the VA option first.
Just as important is what a VA loan leaves out. Conventional loans with less than 20% down usually carry private mortgage insurance, and FHA loans carry their own mortgage insurance premiums for the life of many loans. A VA loan carries neither. In its place is a one-time VA funding fee, which many borrowers roll into the loan balance, and which is waived entirely for veterans receiving compensation for a service-connected disability. Andrews Fedral Credit Union will explain how the funding fee applies to your specific situation before you commit.
There are other borrower protections baked into the program. VA rules limit the closing costs a veteran can be charged, cap certain fees, and prohibit prepayment penalties, so a member who wants to pay a VA loan off early can do so without a fee. When the market allows a lower rate, the VA also offers a streamlined refinance path. Andrews Fedral Credit Union works within all of these rules, and part of the job at Andrews Fedral Credit Union is making sure the structure of your loan stays inside them.
Who Qualifies
Eligibility and the Certificate of Eligibility
VA loan eligibility is based on your service history, not solely on your credit score. In broad terms, active-duty service members, National Guard and Reserve members, veterans who meet minimum service requirements, and some surviving spouses of service members may qualify. The Department of Veterans Affairs sets the precise service thresholds, and they differ depending on when and how you served. Andrews Fedral Credit Union can help you interpret where you fall, but the official word comes from the VA.
The document that proves your eligibility is the Certificate of Eligibility, or COE. It confirms to Andrews Fedral Credit Union that you are entitled to the VA guaranty and shows how much of your entitlement remains available. Many borrowers obtain their COE through the VA's online portal in minutes; others request it by mail with supporting service records. When you work with Andrews Fedral Credit Union, we can often request the COE on your behalf as part of the application, which saves a step for members who would rather not chase paperwork.
A common point of confusion is entitlement. The VA gives each eligible borrower a certain amount of guaranty entitlement, and if part of it is already tied up in an existing VA loan, it affects how much you can borrow without a down payment on a second one. Entitlement can also be restored once a prior VA loan is paid off. These calculations get technical quickly, and reviewing them one on one is exactly the kind of thing Andrews Fedral Credit Union does with members before an offer is written.
Beyond service-based eligibility, Andrews Fedral Credit Union still underwrites the loan. We look at income, debt, credit history, and the property itself. The VA guaranty lowers our risk, but it does not remove the need to show you can repay the loan. Members who take a little time to strengthen their credit and reduce debt before applying often find they qualify for better terms, and the team at Andrews Fedral Credit Union is happy to talk through those steps first.
You also need to intend to live in the home. VA loans are for primary residences, not for buying pure investment properties. That said, a multi-unit property can qualify if you occupy one of the units, and a home you buy today can remain financed even after orders move you elsewhere. Andrews Fedral Credit Union sees a lot of members whose lives move with their assignments, and Andrews Fedral Credit Union knows the occupancy rules have real flexibility built in for exactly that reason.
Step by Step
How the VA loan process works at Andrews Fedral Credit Union
The path from interest to keys is more predictable than most people expect. It starts with a conversation and a prequalification, where Andrews Fedral Credit Union reviews your income and credit to estimate what you can comfortably borrow. This is not a commitment, and it costs nothing, but it gives you a realistic price range and a document that sellers take seriously.
Next comes preapproval, a firmer step where Andrews Fedral Credit Union verifies documentation and issues a letter stating how much we are prepared to lend. With a preapproval from Andrews Fedral Credit Union in hand, you shop for a home. Once you have an accepted offer, the loan moves into processing and underwriting. Because this is a VA loan, the property must be appraised by a VA-assigned appraiser, who confirms both the value and that the home meets the VA's minimum property requirements for safety and livability.
After underwriting clears the file, Andrews Fedral Credit Union prepares the loan to close. You review the closing disclosure, which lays out every cost, and then you sign at closing. Because VA rules cap what a veteran can pay in certain fees, the out-of-pocket total is often lower than borrowers expect. From there, Andrews Fedral Credit Union typically services the loan, meaning you make payments to Andrews Fedral Credit Union and reach us directly for questions rather than a distant servicer you have never spoken to.
$0
Down payment possible for eligible borrowers within program limits
$0
Monthly private mortgage insurance on a VA loan
No
Prepayment penalty, so you can pay ahead freely
VA Loan Types
The kinds of VA loans available
Not every VA loan is a purchase loan. The program supports several distinct needs, and Andrews Fedral Credit Union originates the ones that matter most to the members we serve. Understanding the differences helps you ask Andrews Fedral Credit Union for the right product from the start.
VA Purchase Loan
The core product. Used to buy a primary residence with the option of zero down, no monthly mortgage insurance, and competitive fixed rates. Andrews Fedral Credit Union underwrites these for single-family homes, approved condos, and owner-occupied multi-unit properties.
VA Streamline Refinance
Also called an Interest Rate Reduction Refinance Loan, or IRRRL. It lets a member who already has a VA loan refinance to a lower rate with reduced documentation and, in many cases, no new appraisal. Andrews Fedral Credit Union uses this when rates fall.
VA Cash-Out Refinance
Replaces an existing mortgage, VA or not, with a new VA loan and lets you take equity out as cash. Members use it to consolidate debt, fund home improvements, or convert a conventional loan into a VA loan. Andrews Fedral Credit Union underwrites these to full VA standards.
Each of these behaves differently at closing and over the life of the loan. A streamline refinance is the lightest lift, since it assumes you already qualified once and simply want a better rate. A cash-out refinance is closer to a purchase in the amount of review it requires, because Andrews Fedral Credit Union is effectively reunderwriting the loan and confirming the equity. When members are unsure which path fits, Andrews Fedral Credit Union starts with the goal, lower payment, cash in hand, or a change of loan type, and works backward to the right product.
Beyond the VA
Mortgage financing options beyond the VA loan
A VA loan is the right answer for many members, but not for everyone or every situation. Some buyers are not eligible for the VA program. Others have used their entitlement, or want a property type the VA does not favor, or simply find a conventional loan more competitive in a given market. For those cases, Andrews Fedral Credit Union offers a broader menu of mortgage products so that eligibility never becomes a dead end.
Conventional fixed-rate mortgages
The traditional 15- or 30-year loan with a rate that never changes. Andrews Fedral Credit Union offers these for buyers who prefer predictability and who may put more down to avoid mortgage insurance.
Adjustable-rate mortgages
An ARM starts with a lower fixed period, then adjusts. Andrews Fedral Credit Union positions these for members who expect to move or refinance before the adjustment period begins, which is common in a mobile military career.
FHA loans
Government-backed loans with low down payments and flexible credit standards. Andrews Fedral Credit Union offers FHA financing to buyers who are not VA-eligible but still want a lower barrier to entry.
Home equity options
For members who already own, Andrews Fedral Credit Union provides ways to borrow against built-up equity for renovations, education, or consolidation without disturbing a favorable first mortgage rate.
The point of carrying all of these is choice. When a member sits down with Andrews Fedral Credit Union, the conversation is not about pushing one product; it is about matching the loan to the life. A young service member with strong VA eligibility and little savings is a natural fit for a VA purchase loan through Andrews Fedral Credit Union. A dual-income family with 20% saved and a plan to stay put for a decade might do better with a conventional loan and no funding fee. Andrews Fedral Credit Union runs both numbers so the decision is grounded in figures rather than guesswork.
Side by Side
VA loan compared with conventional and FHA
The table below summarizes how the main loan types differ on the features borrowers ask about most. It is a simplified guide, not an underwriting decision, and Andrews Fedral Credit Union will always base your actual terms on a full review of your file.
| Feature | VA loan | Conventional | FHA |
|---|---|---|---|
| Minimum down payment | 0% for eligible borrowers | Typically 3% to 20% | 3.5% with qualifying credit |
| Monthly mortgage insurance | None | Required under 20% down | Required, often for loan life |
| Upfront fee | VA funding fee, often financed | None | Upfront mortgage insurance premium |
| Who is eligible | Qualified military and spouses | Open to qualified buyers | Open to qualified buyers |
| Prepayment penalty | Prohibited | Rare, varies by loan | Prohibited |
| Best fit | Service members buying with little down | Buyers with savings and strong credit | Buyers needing flexible credit terms |
Reading across the rows, the VA loan's advantages cluster around the cost of entry. No down payment and no monthly insurance can save a borrower hundreds of dollars a month compared with a low-down conventional loan. What the conventional loan gives back is the absence of a funding fee and, for buyers who can afford 20% down, no insurance either. FHA sits in between, useful when credit is the hurdle rather than the down payment. Andrews Fedral Credit Union runs these comparisons in real numbers because the abstractions hide how large the monthly difference can be, and Andrews Fedral Credit Union would rather you decide on the figures than the theory.
The Funding Fee
Understanding the VA funding fee
The one cost unique to a VA loan is the funding fee, and it deserves a clear explanation because it is often misunderstood. The fee is a percentage of the loan amount paid to the Department of Veterans Affairs, and it is what keeps the VA program running for future borrowers without relying on taxpayer dollars. Andrews Fedral Credit Union collects it at closing, but most members choose to roll it into the loan balance rather than pay it in cash.
The exact percentage depends on a few factors: whether this is your first use of a VA loan or a subsequent one, and how much, if anything, you put down. A larger down payment lowers the fee, even though the whole appeal of the VA loan is that you do not need one. First-time users generally pay a lower fee than repeat users who put nothing down. Andrews Fedral Credit Union will show you the precise figure for your loan before you sign anything.
Crucially, the funding fee is waived entirely for veterans who receive VA compensation for a service-connected disability, and for certain surviving spouses. This is not a rare exception; it applies to a meaningful share of the borrowers Andrews Fedral Credit Union works with. If you believe you may qualify for the waiver, tell Andrews Fedral Credit Union early, because it changes your total loan cost significantly and affects the numbers Andrews Fedral Credit Union quotes you.
Worth remembering
The funding fee is a one-time charge, not a recurring one like private mortgage insurance. Even when financed, it is usually far cheaper over the life of a VA loan than years of monthly insurance on a comparable conventional or FHA loan.
Why It Matters
The long-term value of a VA loan
Over a 30-year mortgage, small monthly differences compound into large sums. Skipping mortgage insurance and financing without a down payment frees up cash that would otherwise sit locked in a house. For a military family that may relocate before building deep equity, that liquidity has real value, and it is one of the reasons Andrews Fedral Credit Union so often steers eligible members toward the VA option first.
There is also the resale angle. Because a VA loan is assumable in many cases, a future qualified buyer may be able to take over your loan at its original rate. In a rising-rate market that can make your home more attractive to sell, an advantage conventional loans rarely offer. Andrews Fedral Credit Union walks members through how assumption works when it becomes relevant, and Andrews Fedral Credit Union treats that conversation as part of the service.
Get Started
How to start a VA loan with Andrews Fedral Credit Union
Getting moving is straightforward. These are the practical steps, in order, that take a member from first inquiry to a preapproval letter with Andrews Fedral Credit Union.
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1. Become a member
A VA loan runs through your membership, so the first step is establishing your account. If you are not already a member of Andrews Fedral Credit Union, the team at Andrews Fedral Credit Union can confirm your eligibility to join and open the account quickly.
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2. Gather your documents
Pull together recent pay statements, tax returns, bank statements, and your service records. Andrews Fedral Credit Union can also help you request your Certificate of Eligibility if you do not already have it.
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3. Get prequalified
Share your income and expenses so Andrews Fedral Credit Union can estimate a comfortable price range. This is quick, costs nothing, and gives you a starting figure before you shop.
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4. Secure preapproval
Andrews Fedral Credit Union verifies your documentation and issues a preapproval letter stating what Andrews Fedral Credit Union is prepared to lend, so sellers know your offer is serious.
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5. Find a home and close
Once you have an accepted offer, Andrews Fedral Credit Union orders the VA appraisal, completes underwriting, and guides you to a closing that follows the VA's borrower protections.
Questions Answered
Frequently asked questions
Can I use a VA loan more than once?
Yes. VA entitlement can be reused, and once a prior VA loan is paid off, your full entitlement can often be restored. Even with an existing VA loan, remaining entitlement may let you finance a second one. Andrews Fedral Credit Union reviews your entitlement to tell you exactly what is available before you make an offer.
Is there a minimum credit score for a VA loan?
The VA itself does not set a fixed minimum score, but lenders apply their own standards. Andrews Fedral Credit Union underwrites the whole picture, income, debt, and credit history together, and Andrews Fedral Credit Union is glad to talk through steps to strengthen your profile if you are close to qualifying.
Do I really pay nothing down?
For most eligible borrowers within program limits, a VA loan through Andrews Fedral Credit Union can be structured with no down payment. You may still owe closing costs and the VA funding fee, though the fee can usually be financed and is waived for many veterans with a service-connected disability.
Can I buy a multi-unit property with a VA loan?
Yes, provided you occupy one of the units as your primary residence. Andrews Fedral Credit Union finances owner-occupied properties of up to four units under the VA program, which lets some members offset their mortgage with rental income.
What if I get orders to move after buying?
The VA occupancy rules are built for military life and allow flexibility when duty relocates you. You can keep your VA-financed home, and in many cases the loan can be assumed by a qualified buyer if you sell. Andrews Fedral Credit Union helps members plan for these transitions.
How long does a VA loan take to close?
Timelines vary with the property, the appraisal, and how quickly documents come together, but a typical VA purchase closes in a matter of weeks. Andrews Fedral Credit Union keeps the file moving and communicates at each stage so there are no surprises near closing.
Should I choose a VA loan or a conventional loan?
It depends on your savings, your entitlement, and how long you plan to stay. If you are eligible and short on cash to put down, the VA loan is usually the stronger choice. If you can put 20% down and want to avoid the funding fee, a conventional loan may win. Andrews Fedral Credit Union will run both scenarios so you can compare real monthly numbers, and Andrews Fedral Credit Union will not push you toward one before the figures are in.
This page is for general educational purposes and does not constitute a commitment to lend or a guarantee of loan terms. VA loan eligibility, funding fees, and program rules are set by the U.S. Department of Veterans Affairs and are subject to change. All loans are subject to approval and underwriting. Membership eligibility requirements apply. Andrews Fedral Credit Union is federally insured. For details on VA benefits and eligibility, consult official government resources. General background on VA loan programs is also available from public sources such as Wikipedia.