A VA Loan Is More Than a Mortgage Program: What Veterans and Their Families Should Know

I have worked with a lot of veterans and their families over the years, and one thing I've learned is that having access to a VA home loan benefit and understanding how to use that benefit are two very different things.

VA loans can be one of the most powerful home financing options available to eligible veterans, active-duty service members and surviving spouses. But they also come with their own rules, terminology and, unfortunately, plenty of misinformation.

That's where education matters.

My job isn't simply to tell someone whether they qualify for a VA loan. I want them to understand what we're doing, why we're doing it and what their options are before they make one of the largest financial decisions of their lives.

Start With the Veteran, Not the Loan

Every borrower brings a different story to the table.

Income is different. Employment is different. Credit is different. Family circumstances are different. The property they're buying is different. Their plans for the future are different.

That's why I don't believe mortgage lending should begin by choosing a loan and then trying to squeeze the borrower into it.

It starts with a conversation.

What are you trying to accomplish? How long do you expect to own the home? What does a comfortable monthly payment look like? What other financial obligations do you have? What matters most to you and your family?

Only after we understand those things should we start deciding what the financing needs to look like.

Your Certificate of Eligibility Is the Beginning, Not the Finish Line

One of the first things we typically need to establish is the veteran's Certificate of Eligibility, commonly called the COE.

The COE helps establish eligibility for the VA home loan benefit and provides information about available entitlement.

Sometimes obtaining it is very straightforward. Sometimes we need additional documentation or have questions that need to be resolved.

But receiving a COE doesn't mean the mortgage is automatically approved.

The borrower still has to meet the applicable credit, income, employment and underwriting requirements, and the property itself has requirements that must be satisfied.

That's an important distinction because I never want a veteran hearing “you're eligible for a VA loan” and interpreting that as “your loan is already approved.”

Those aren't the same thing.

VA Loans Can Offer Some Significant Advantages

For an eligible borrower, VA financing can provide benefits that may include 100% financing with no down payment, subject to eligibility and loan requirements.

VA loans also do not require monthly private mortgage insurance in the same way many other low-down-payment mortgage options do.

There may be a VA funding fee, although certain eligible veterans and surviving spouses may be exempt from paying it.

Interest rates can also be competitive, but I always caution borrowers against making a mortgage decision based solely on an advertised rate.

A rate doesn't tell you the entire story.

You need to understand the payment, closing costs, discount points if applicable, loan amount, cash required to close and the longer-term financial impact.

A lower rate isn't automatically a better deal if you have to spend an unreasonable amount of money to get it.

Read the whole book, not just the cover.

A VA Appraisal Is Not a Home Inspection

This is another area where I want veterans and their families to understand exactly what they're getting.

The VA appraisal helps establish the property's value and evaluates whether the property meets applicable VA Minimum Property Requirements.

It is not the same thing as an independent home inspection.

An appraiser and a home inspector have different jobs.

I don't want a buyer believing the VA appraisal eliminates the need to understand the physical condition of the home they're buying.

This is your home. Ask questions. Understand what you're buying. Surround yourself with good professionals and make an educated decision.

What Happens When a VA Loan Gets Complicated?

This is where experience becomes especially important.

I've worked through VA files involving questions surrounding employment, income, credit, property conditions, documentation and other circumstances where the answer wasn't immediately obvious.

One of the most important lessons I've learned in mortgage lending is:

Don't stop at the first no. Find out why the answer is no.

That doesn't mean every loan can or should be approved.

Sometimes no really is the answer.

But there's a tremendous difference between a guideline saying something cannot be done and someone simply not knowing how it can be done.

When something doesn't make sense, I want to understand the guideline. I want to understand the borrower's circumstances. I want to know what documentation exists and what the actual issue is before reaching a conclusion.

I've had files teach me lessons that I carried directly into the next difficult situation.

That's one of the reasons I believe you should never stop learning in this business.

Realtors Should Understand This Too

A strong VA transaction isn't created by the lender alone.

The veteran, Realtor, lender, title company, appraiser and other professionals involved in the transaction all play different roles.

Communication between those people matters.

If I'm working with a veteran who's buying a home, I want their Realtor to understand where we are in the process. If there's a problem, we're going to address it. If there's something we need, we're going to communicate it.

I make the Realtors I work with two promises.

First, I will never lie to you.

If the news is bad, there's a pretty good chance I'll be contacting you faster than when the news is good. Problems don't get better because we avoid talking about them.

Second, I will never hide from you.

When there's a question, I'll be easy to find. When something goes sideways, I'll be front and center.

I can't promise that every mortgage transaction will be perfect.

I can promise you won't have to wonder where I am when one isn't.

Ask Questions Before You Assume You Can't Use Your VA Benefit

I've met plenty of people over the years who had already convinced themselves that they couldn't buy a home.

Sometimes they were right.

Sometimes they weren't even close.

Maybe somebody told them something years ago. Maybe they had a previous credit problem. Maybe their employment situation changed. Maybe they used their VA benefit before and assumed they couldn't use it again. Maybe they simply didn't know where to begin.

That's why I'd rather have the conversation.

If the answer is no today, let's understand why it's no.

Is it permanent?

Is it temporary?

Is there something that needs to change?

Is there another option?

Or were we asking the wrong question in the first place?

An educated no is far more useful than an unexplained no.

The VA Benefit Was Earned. Take the Time to Understand It.

Veterans earned access to the VA home loan benefit through their service.

I believe that deserves more than a five-minute conversation and a payment quote.

It deserves education.

It deserves someone willing to answer questions.

It deserves someone willing to say “I don't know” when they don't know—and then go find the answer.

And it deserves a mortgage professional willing to look at the individual sitting in front of them rather than treating every veteran like the last VA loan they closed.

If you're a veteran, active-duty service member, eligible surviving spouse, family member, or Realtor working with a veteran and you have questions about VA financing, I'm always willing to have the conversation.

Sometimes the most important thing we can do is simply understand where you're starting.

Jarrod Manley
Mortgage Loan Originator
Jarrod Manley Mortgage Group
Direct: (614) 400-3339
Email: jmanley@smprate.com
Jarrod Manley Mortgage Group