VA Loan

What is a Certificate of Eligibility (COE), and how to I get one?

To get a VA Loan, you will need to obtain a COE from Veteran's Affairs. Your COE certifies that you are eligible for VA benefits and details your entitlement, which indicates the portion of your loan than the VA will guarantee to mortgage lenders, like CapCenter. You don't need your COE to get started with your loan application. Our expert loan team will help you navigate the COE application, but you can get started by submitting VA Form 26-1880.

How many times can I use a VA loan?

There is no limit to how many times you can use your VA home loan benefit. You can even have multiple VA loans at the same time. There will be differences between your first VA loan and subsequent VA loans, though. Most notably, your first use of VA loan benefits will have a lower funding fee.

What is the VA funding fee, and how much does it cost?

The VA funding fee is charged by the Veteran's Affairs to help finance the guarantees it provides on VA loans. Your funding fee can be paid at closing or added to your loan amount - most VA borrowers choose a higher loan amount. The fee typically varies between 1.25% - 3.3% of your loan amount, but the fee is much lower for VA IRRRLs (0.5%). The main things that influence your funding fee include your down payment amount and whether or not you are a first-time user of VA loan benefits.

What are the financial benefits of a VA loan?

VA loans come with many financial benefits, especially when you use CapCenter for your VA loan:

• CapCenter issues no closing cost VA loans. That's right, we cover all traditional closing costs (restrictions apply).
• VA loans do not require mortgage insurance
• VA loans usually have lower interest rates compared to other loan options

Visit our Mortgage Calculator to get a full VA mortgage quote and to understand how CapCenter saves you money.

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Am I eligible for a VA Streamline Refinance (IRRRL)?

VA IRRRLs have many advantages over other refinance products. Most notably IRRRLs may not require an appraisal or credit check. Additionally, IRRRLs have a lower funding fee compared to other VA-backed mortgages. You may qualify for a IRRRL if you already have a VA-backed mortgage on your property. There are a few additional qualification requirements, which include:

• IRRLs do not permit you to receive cash at closing. Cash Out Refinances require a separate VA product.
• Your monthly principal & interest payment must be lower than your existing VA loan. The VA grants exceptions to this rule if you are reducing your loan term or if you are refinancing from an adjustable-rate VA loan (ARM) to a fixed-rate. Otherwise your new loan must have at least a 0.5% lower interest rate.
• Your last six monthly mortgage payments must have been paid on-time to qualify for a VA IRRRL