VA home loans
Distinguish VA loan-benefit eligibility from a lender’s financing decision.
Certificate of Eligibility and lender review
A Certificate of Eligibility concerns eligibility for the VA loan benefit. The lender separately evaluates the loan application and applicable financial requirements.
Loan costs and terms
Closing costs, interest, property requirements and any funding fee or exemption affect the loan. VA program information and the lender’s disclosures describe these terms.
Example
Fictional example: Avery obtains a Certificate of Eligibility and then receives a lender’s proposed loan disclosures. The certificate concerns the VA loan benefit; the disclosures describe the proposed loan’s terms and costs. Avery still has the lender’s approval process to complete. Having the certificate did not approve that loan.