Veteran Affairs Home Loans: Built for Those Who Served

A VA purchase loan is a mortgage backed by the U.S. Department of Veterans Affairs, designed to help eligible veterans, active-duty service members and certain military spouses buy a home. One of its biggest advantages is that it typically requires no down payment or private mortgage insurance (PMI). The loan is issued by private lenders, like The Federal Savings Bank and partially guaranteed by the VA, which helps you get more favorable terms and interest rates.

Eligibility depends on your military service history and discharge status. Generally, you’re eligible if you served at least 90 days during wartime, 181 days during peacetime or 6 years in the National Guard or Reserves. You’ll need a Certificate of Eligibility (COE), which confirms your VA entitlement. The Federal Savings Bank can help you obtain your COE and confirm your eligibility during the loan process.

Yes. One of the most valuable benefits of a VA Loan is that it allows you to buy a home with zero down payment, meaning you can finance 100% of the home’s value. This makes it easier for veterans to become homeowners without needing to save for years. However, you’ll still need to cover closing costs, unless the seller agrees to contribute or you finance them into the loan.

Yes, the VA charges a one-time funding fee to help sustain the loan program. This fee varies based on your down payment (if any), the type of VA loan, and whether it’s your first time using the benefit. For a typical first-time purchase with no down payment, the funding fee is 2.15% of the loan amount. This fee can usually be rolled into your loan, so you don’t have to pay it upfront out of pocket.

The VA doesn’t set a minimum credit score, but lenders typically require a score of at least 620. The Federal Savings Bank looks at the full picture of your financial situation (not just your score) so even if you’ve had credit challenges in the past, you may still qualify. Our team works closely with veterans to help them understand their options and how to strengthen their application.

When you get prequalified or preapproved by The Federal Savings Bank, you are showing the seller, real estate agent and banker that you are a strong buyer. This letter will provide the numbers that will tell you how much of a home you can afford, will help speed up the process and close on your dream home FAST. The Federal Savings Bank will have your finances and credit reviewed, determine if you are eligible for a mortgage loan, and let you know the loan amount you qualify for.

Please keep in mind a VA home loan preapproval is not a commitment. It is delivered to you for informational purposes. Consult your mortgage banker for the most accurate information on the duration of your pre-approval.

A VA cash-out refinance allows eligible veterans, service members or qualifying spouses to replace their current mortgage (whether it’s a VA loan or not) with a new VA-backed loan. The new loan can be for more than what you owe, letting you take the difference as cash at closing. This option can also be used to refinance into better loan terms, such as switching from an adjustable-rate to a fixed- rate mortgage. The Federal Savings Bank offers this product with competitive rates and personalized support throughout the process.

To qualify, you need a valid Certificate of Eligibility (COE) and must meet military service requirements. Typically, you must have served 90 days during wartime, 181 days during peacetime or 6 years in the Reserves or National Guard. The home must be your primary residence. You’ll also need to meet standard credit, income and debt-to-income guidelines. Documents required include your COE, recent pay stubs, W-2s or tax returns, a home appraisal and mortgage statements. The Federal Savings Bank can help gather everything you need.

You may be eligible to access up to 100% of your home’s appraised value, depending on the lender and your financial profile. For instance, if your home is worth $300,000 and you owe $150,000, you could potentially access around $150,000 in cash minus any closing costs or fees. The Federal Savings Bank will work with you to calculate your maximum cash-out potential and help structure your loan accordingly.

The cash from a VA cash-out refinance can be used for virtually any purpose. Many borrowers choose to pay off high-interest debt, fund home improvements, cover education costs or pay for major expenses like medical bills. You’ll receive the money as a lump sum when the loan closes.

Like most VA loans, there’s a one-time VA funding fee, which typically ranges from 2.15% to 3.3% depending on your usage and military history. This fee can be rolled into the loan. Closing costs such as appraisal fees, title charges and lender fees are also part of the transaction, generally totaling 2% to 5% of the loan amount. The Federal Savings Bank provides a transparent breakdown of all costs in your loan estimate, and in many cases, these costs can also be financed into the loan.