VA Loans for Iowa Veterans and Military Families
Serving Cedar Rapids, Marion, Iowa City, and surrounding communities, VA loans1 offer military members, veterans, and eligible spouses the opportunity to buy a home with no down payment and competitive rates.
VA Home Loans Explained
A VA loan is a mortgage benefit guaranteed by the U.S. Department of Veterans Affairs that helps active-duty service members, veterans, and eligible surviving spouses buy homes with no down payment required.
VA loans offer competitive interest rates, no private mortgage insurance (PMI), and flexible credit requirements. They can be used to purchase a primary residence, build a home, or make improvements to an existing property.1
Key Benefits of VA Loans
VA loans offer military families advantages you won't find with other mortgage types.
No Down Payment
Purchase a home with 0% down payment up to your VA loan entitlement amount.
No Private Mortgage Insurance
Save hundreds monthly with no PMI requirement, even with zero down payment.
Competitive Interest Rates
VA loans typically offer lower interest rates than conventional mortgages.
Flexible Credit Standards
VA loans offer more lenient credit requirements compared to conventional loans.
Limited Closing Costs
The VA limits lender fees. Plus, veterans with a 10% or higher service-connected disability rating are exempt from the VA Funding Fee entirely.
Reusable Benefit
Your VA loan benefit can be used multiple times throughout your lifetime.
Current VA Loan Rates
Take advantage of competitive VA loan rates. Contact FSB's Mortgage Department at 319-730-6990 for personalized rate information or request assistance.
VA Loan Loan Term
360
Monthly Payments
2Payment examples are based on a $150,000 loan with a minimum credit score of 740. Payment does not include taxes, insurance, or private mortgage insurance, if required as a condition of the loan. Actual terms and payment amounts vary by borrower. Other rates, terms, and payment options are available.
VA Loan Eligibility Requirements
VA loans are available to active-duty service members, veterans, National Guard and Reserve members, and certain surviving spouses. If you meet any of the following conditions, you are eligible to use the VA Loan program for life:
-
You served at least 90 consecutive days of active duty during a designated wartime period
- You completed at least 181 continuous days of active service during a designated peacetime period
- You served more than six years in the National Guard or Selected Reserve
-
You are the spouse of a service member who died in the line of duty or as a result of a service-related injury
VA Loan Process in 3 Steps
Getting your VA loan is straightforward. Follow these three steps to use your earned benefit.
- Get Your Certificate of Eligibility
- Apply for Your VA Loan
- Close on Your Home
Honoring Those Who Served
FSB is proud to serve Iowa's military families with VA loans. For over 95 years, we've helped local veterans and service members achieve homeownership. Our mortgage team understands your unique needs and is committed to making the VA loan process simple and straightforward.
Frequently Asked Questions: VA Loans
Find answers to the most common questions from military families in Iowa about VA Loans.
What is a VA Loan?
A VA loan is a mortgage program backed by the U.S. Department of Veterans Affairs that helps active-duty service members, veterans, and eligible surviving spouses purchase homes with no down payment.
Unlike conventional mortgages, VA loans don't require private mortgage insurance (PMI) and typically offer lower interest rates. The VA doesn't lend money directly. Instead, it guarantees a portion of the loan, which encourages approved lenders to offer favorable terms.
VA loans can be used to:
- Buy a home
- Build a house
- Refinance an existing mortgage
- Make energy-efficient improvements to your property
Who is Eligible for a VA Loan?
VA loan eligibility is based on your service history. You may qualify if you've served:
- 90 consecutive days of active duty during wartime
- 181 days during peacetime
- More than six years in the National Guard or Reserves
Certain surviving spouses of service members who died in the line of duty or from service-related disabilities are also eligible.
To use your VA loan benefit, you'll need a Certificate of Eligibility (COE), which confirms your service record and entitlement. You can request your COE online through the VA's eBenefits portal or have your lender request it on your behalf during the application process.
What type of home can I buy with a VA loan?
VA loans can be used to purchase:
- Single-family homes
- Condominiums (if VA-approved)
- Townhouses
- Manufactured homes
- New construction
The property must be your primary residence. You cannot use a VA loan for investment properties or vacation homes.
Additionally, homes must meet VA Minimum Property Requirements (MPRs), which ensure the property is safe, structurally sound, and sanitary. The VA appraisal will verify that the home has:
- Adequate heating, plumbing, and electrical systems
- A sound roof
- Safe access
Properties with significant health or safety issues may not qualify until repairs are completed.
What are the benefits of a VA Loan?
VA loans offer several powerful advantages:
No Down Payment Required: Finance 100% of the home's purchase price.
No Private Mortgage Insurance (PMI): Save hundreds of dollars monthly compared to conventional loans with less than 20% down.
Competitive Interest Rates: VA loans typically feature lower rates than conventional mortgages.
Limited Closing Costs: The VA limits what fees lenders can charge, and sellers are permitted to pay all loan-related closing costs plus up to 4% in concessions for prepaid expenses.
Flexible Credit Requirements: More lenient than conventional loans.
Reusable Benefit: Your VA loan benefit can be used multiple times throughout your lifetime.
How do I apply for a VA guaranteed loan?
Step 1: Obtain Your Certificate of Eligibility (COE)
Request it online through the VA website, by mail, or through an approved lender.
Step 2: Complete a Mortgage Application1Work with a VA-approved lender and provide documentation including:
- Proof of income
- Employment verification
- Bank statements
- Credit history
After pre-approval, you can begin house hunting.
Step 4: VA AppraisalWhen you find a home, the lender will order a VA appraisal to ensure the property meets minimum requirements.
Step 5: Close on Your HomeOnce the appraisal is complete and underwriting approves your loan, you'll proceed to closing where you'll sign final paperwork and pay any applicable closing costs and the VA funding fee.
What is the minimum credit score for VA Loan approval?
The VA itself doesn't set a minimum credit score requirement, but most lenders typically require a credit score of at least 620 for VA loan approval.
Some lenders may approve borrowers with lower scores depending on other compensating factors like:
- Strong income
- Low debt-to-income ratio
- Substantial savings
Unlike conventional loans, VA loans are more forgiving of past credit challenges, including previous bankruptcies or foreclosures, provided sufficient time has passed and you've reestablished good credit.
If your credit score is below 620, you may still qualify by working with specialized VA lenders or by improving your credit before applying.
If I have already obtained one VA Loan, can I get another one?
Yes, your VA loan benefit is reusable. Contact a lender for more details regarding your VA loan eligibility.
What are the disadvantages of a VA Loan?
While VA loans offer excellent benefits, there are some limitations to consider:
VA Funding Fee: VA loans require a one-time funding fee ranging from 1.25% to 3.3% of the loan amount, depending on your down payment and whether it's your first VA loan. This can be rolled into the loan and certain disabled veterans are exempt.
Primary Residence Only: The property must be your primary residence. You cannot use VA loans for investment properties or vacation homes.
Stricter Property Standards: VA appraisals can be stricter than conventional appraisals. If the home doesn't meet minimum property requirements, repairs must be completed before closing.
Potentially Longer Process: The VA loan process may take slightly longer than conventional loans due to additional appraisal requirements.
Seller Perceptions: Not all sellers are familiar with VA loans, and in competitive markets, some may prefer buyers with conventional financing, though this concern is often overstated.
Questions About Your VA Loan Benefit?
Connect with FSB's mortgage team to discuss your VA loan options at 319-730-6990 or fill out the form below to get started.
Finance Your Home with a Veteran-Friendly Eastern Iowa Bank
We're Iowa's Faster. Stronger. Better.® community bank, and honored to help military families achieve homeownership with VA loan benefits.
With over 95 years of experience serving Eastern Iowa communities, including Cedar Rapids, Marion, and Iowa City, our team understands the unique needs of veterans and active-duty service members. VA loans offer unmatched benefits with zero down payment, no PMI, and competitive rates. Our local lenders are here to guide you through every step.
If you're ready to use your VA loan benefit, we're ready to serve those who served.1
VA Loan Disclosures
1Must be 18 or older to apply. All loans are subject to credit approval and program guidelines.
2Payment examples are based on a $150,000 loan with a minimum credit score of 740. Payment does not include taxes, insurance, or private mortgage insurance, if required as a condition of the loan. Actual terms and payment amounts vary by borrower. Other rates, terms, and payment options are available.
2Payment examples are based on a $150,000 loan with a minimum credit score of 740. Payment does not include taxes, insurance, or private mortgage insurance, if required as a condition of the loan. Actual terms and payment amounts vary by borrower. Other rates, terms, and payment options are available.
†All rates are subject to change without notice. Actual rate may be higher based on credit history, occupancy, LTV and loan type. The rates provided assume the purpose of the loan is to purchase a single-family residence that will be used as a primary residence. VA loans require a one-time funding fee ranging from 1.25% to 3.3% of the loan amount, depending on your down payment and whether it's your first VA loan. See a mortgage lender for details. FSB is not responsible for typographical errors or omissions.
