VA Home Loans — an earned benefit.
The VA Loan is a government-backed home loan benefit for eligible veterans, active-duty service members, and qualifying surviving spouses. Down payment requirements depend on VA entitlement, underwriting, property requirements, and the borrower's loan scenario. You can apply with any lender that participates in the program, including PBT Bancorp.
Requirements depend on eligibility, entitlement, underwriting, and the property.
Skip private mortgage insurance and save monthly.
Buy, build, refinance, or improve your primary home.
Eligibility can be restored and used again.
What is a VA Loan?
A mortgage program backed by the U.S. Department of Veterans Affairs and offered by private lenders like PBT Bancorp.
The Veteran Administration's Loan originated in 1944 through the Servicemen's Readjustment Act, also known as the GI Bill. It was signed into law by President Franklin D. Roosevelt and was designed to provide veterans with a federally guaranteed home loan with no down payment.
VA loans are made by private lenders like banks, savings & loans, and mortgage companies to eligible veterans for homes to live in. The lender is protected against loss if the loan defaults — depending on the program option, the loan may or may not require a down payment.
Who is eligible for a VA Loan?
Eligibility is based on length and type of service. Most veterans, active-duty members, National Guard, Reserves, and surviving spouses qualify.
What type of home can I buy with a VA Loan?
VA loans must finance your primary residence within the United States or its territories.
- Existing single-family home
- Townhouse or condominium in a VA-approved project
- New construction residence
- Manufactured home or lot
- Home refinances and certain home improvements
What are the benefits of a VA Loan?
The VA loan is one of the most powerful benefits available to those who have served.
- Down payment requirements vary by eligibility and loan scenario
- No private mortgage insurance (PMI)
- No penalties for prepaying the loan
- Competitive interest rates
- Qualification is easier than a conventional loan
- Sellers can pay some of the closing costs
- Can be combined with additional down payment assistance to reduce closing costs
How do I apply for a VA-guaranteed loan?
You can apply with any lender that participates in the program — including PBT Bancorp.
In addition to standard application requirements, you'll need the following at application time:
- Certificate of Eligibility from the Veterans Administration, obtained by submitting a completed VA Form 26-1880.
- Proof of Military Service from a VA Eligibility Center.
Don't have these documents yet? No problem — your PBT Bancorp loan officer will walk you through how to request them.
If I've already used a VA Loan, can I get another?
Yes — VA eligibility is reusable depending on the circumstances.
If you have paid off your prior VA Loan and disposed of the property, you can have your eligibility restored. On a one-time basis, you may have your eligibility restored if your prior VA Loan has been paid off, but you still own the property.
Either way, the veteran must send the Veterans Administration a completed VA Form 26-1880 to the VA Eligibility Center. To prevent delays in processing, include evidence that the prior loan has been fully paid and — if applicable — the property was disposed of. A paid-in-full statement from the former lender or a copy of the HUD-1 settlement statement must be submitted.
What are the disadvantages of a VA Loan?
Worth knowing upfront so there are no surprises later in your journey.
- VA loans made prior to March 1, 1988 can be assumed with no qualifying of the new buyer. If the buyer defaults, the veteran homeowner may be liable for the funds.
- Some sellers are hesitant to work with someone obtaining a VA loan because it takes longer than a conventional loan to process.
- Sellers are often asked to pay a portion of closing costs and may therefore be less likely to negotiate the sales price of the home.
Earned it. Now use it.
Get matched with a dedicated VA loan specialist who will walk you through eligibility, your Certificate of Eligibility, and every step that follows.