Buying a home is stressful enough on its own. Add in the extra steps required for a U.S. Department of Veterans Affairs (VA) loan, like requesting a certificate of eligibility or passing a stricter property appraisal, and it’s easy to wonder if a delay is normal or a warning sign.
The good news is that there’s a clear order to all of it, even if it doesn’t feel that way at first. Below, we’ll go over what the veteran home buying timeline looks like, and the most common VA loan holdups so you can spot them early.
Key Process Differences Between a VA Loan and a Conventional Loan
Before getting into the nitty-gritty of VA loans, it helps to understand how they differ from conventional loans. The two loan types get you to the same place (a mortgage), but the paths look different.
Here’s how the two compare at a glance:
Category
VA loan
Conventional loan
Eligibility
Requires a certificate of eligibility (COE) proving military service
Open to any qualified buyer, no service history needed
Credit and income
More flexible credit standards; focus on residual income, or cash left after monthly bills
Stricter debt-to-income ratios; often requires higher credit scores
Down payment
0% down possible
Typically 3% to 20% down
Mortgage insurance
No monthly private mortgage insurance (PMI, a fee that protects the lender if you default)
Required if down payment is less than 20%
Property use
Primary residence only
Can finance a second home or rental property
Funding fee
1.25% to 3.3% of the loan (one-time fee), waived for buyers with a service-connected disability
No equivalent fee
Closing costs
Certain lender fees are off-limits, capping what veterans pay
No cap on lender fees
Appraisal standards
Must meet certain safety and structural condition requirements
Confirms market value and general condition only
8 Steps to Buying a Home With a VA Loan
With those differences in mind, here are the VA loan steps veterans can expect.
Step 1: Confirm VA Loan Eligibility
Eligibility depends on your service type, length and when you served. Active duty members need 90 continuous days of service. For veterans, your service dates determine eligibility, and you may need either 90 or 181 days of active service. National Guard and Reserve members need six years of service, or 90 days under certain federal orders. The VA’s eligibility page has the full breakdown.
Once you know you qualify, request your COE, the document that proves your service history to lenders. You can pull it yourself on VA.gov, or ask a VA-approved lender to request it electronically on your behalf.
Step 2: Review Finances and Budget
Most lenders want to see a 620 or higher credit score, but VA loans give you a bit more breathing room than a conventional mortgage would. In addition to your debt-to-income ratio, lenders will look at your residual income (what’s left after you pay your bills each month) to determine a suitable mortgage.
It’s worth setting aside cash for two things early on. The funding fee is one, though it disappears if you’re receiving disability compensation. Earnest money is the other — a good-faith deposit that tells a seller you’re serious.
Step 3: Obtain Mortgage Preapproval
Before you tour your first house, your lender needs paperwork: pay stubs, W-2s, tax returns and bank statements. Hand it all over, and they’ll tell you what you can comfortably afford.
From there, you’ll get a preapproval letter documenting your maximum loan amount. Sellers pay attention when they know your financing is sorted, and that can be the edge that gets your offer noticed.
Step 4: Find a VA-Experienced Real Estate Agent
Not every agent knows the ins and outs of a VA-backed offer, so look for one who does. An agent with VA experience knows how to write competitive offers that account for the appraisal rules and funding fee unique to these loans.
Local knowledge is just as important. Your agent should understand the market you’re buying in and know which homes are likely to sail through a VA appraisal versus which ones might raise red flags.
Step 5: Start House Hunting
VA loans cover single-family houses, VA-approved condos and even multi-unit properties up to four units, as long as you plan to live in one of them.
Keep an eye on the condition of the homes as you shop. A home with major safety or structural issues, like a failing roof or faulty wiring, can lead to trouble during the VA appraisal. It pays to rule those out early.
Step 6: Submit an Offer and Sign a Contract
Once you find the right home, work with your agent to put together a competitive offer. Your agent can help you decide how to structure it based on what’s happening in your local market.
Before signing, make sure the contract includes the VA escape clause. This protects you if the home appraises for less than the sale price, meaning you can walk away and not lose your earnest money.
Step 7: Go Through Appraisal, Underwriting and Final Approval
After you and the seller agree on a price, a VA-assigned appraiser will walk the property. This person confirms the price matches the home’s actual value and checks it against the VA’s Minimum Property Requirements (MPRs), the safety and structural standards every VA-backed home has to clear.
From there, your loan moves to underwriting. The lender takes a final look at your finances, employment and the appraisal report before issuing full approval.
Step 8: Close and Move In
Your lender must send a closing disclosure at least three days before your signing date. Look it over carefully and compare it against your original loan estimate. Any changes to your mortgage rate, fees or costs should be easy to spot and are worth asking about before you sign.
When signing day arrives, you’ll finalize the paperwork, cover any last costs and get your keys. From there, the home is officially yours.
Typical Timeline for Veterans Buying a Home
Once you’re under contract, most VA loans close in 30 to 45 days. But the full process may take longer depending on how long it takes to find the right home.
Here’s how a rough timeline breaks down by phase:
- Preapproval and prep (one to two weeks): Request your COE, gather documents for preapproval and find an agent familiar with VA loans.
- House hunting and offer (varies): There’s no fixed timeline here. It can take a few days or several months, depending on your market and what you’re looking for.
- Contract to closing (30 to 45 days): This is where the appraisal (seven to 21 days) and underwriting (seven to 14 days) happen, followed by your closing disclosure and signing (three to five days).
Common Delays and How to Avoid Them
A timeline only holds up if nothing gets in the way, and a few things reliably do.
Here’s what can trip veterans up:
- A late COE request: The COE is what proves your loan qualifies for VA backing. So putting it off pushes back everything that follows, starting with preapproval.
- Appraisal issues: VA appraisers look for safety and structural soundness, not just value. Problems like peeling paint, roof damage or faulty wiring can hold up closing if the seller isn’t willing to fix them.
- New financial activity mid-escrow: Financing a car, opening a credit card or switching jobs mid-process forces your underwriter to redo your debt-to-income calculations. This adds days back onto your timeline.
- Large, unexplained deposits: A sudden cash deposit without a clear paper trail can stall approval while you prove where the money came from.
Some preparation goes a long way toward avoiding holdups:
- Pull your COE, DD-214 (your discharge paperwork), tax returns and bank statements before you schedule any home tours.
- Choose an agent and lender who work with VA loans regularly and know how to spot red flags early.
- Hold off on new credit, big purchases or shifting money around until after you close.
- Prioritize homes that are already move-in ready rather than ones needing major repairs.
Also, build a few extra days of buffer into your target closing date. It won’t stop every delay, but it keeps a minor one from turning into a missed move-out date.
Reporting by Sharon Wu, CFEI®, Special to USA TODAY / USA TODAY. USA TODAY Network via Reuters Connect.
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