A VA loan is available to veterans and service members, including their surviving spouses, to help them purchase, build, repair, or retain a home. These loans can be a lifesaver for returning or active service members, but applying for and receiving the loan can be complex. While the process is similar to a traditional mortgage in some ways, the timeline, specific benefits, and eligibility requirements often differ.
This article details how long the VA loan approval process should take in Maryland, the benefits service members and their families can expect, and how to apply to achieve the best outcome.
Types of VA Loans
A “VA Loan” is not a single financial product but a series of economic programs potentially available to service members depending on their eligibility and financial condition. There are four main types of VA loans that service members should know about since the type they need will change their assessment and application process:
- Purchase Loans: Loans to purchase a house for the occupancy of the service member or their spouse. Active service members may also receive a purchase loan for a dependent. A cash-out refinance may also be available as a VA-guaranteed purchase loan.
- Interest Rate Reduction Refinance Loan: An IRRRL can refinance an existing VA loan to a lower interest rate.
- Native American Direct Loan Program: The NADL program is specific to home construction, purchase, improvement, and refinancing loans for Native American veterans whose tribal organization participates in the program.
- Adapted Housing Grant: Veterans with permanent and total disabilities related to their service can receive suitable housing with several VA-guaranteed housing grants.
Visit the VA Home Loans page of the Veteran Administration’s website to learn more about each type of loan available to veterans, service members, and their families.
Summary of the VA Loan Process
Here is a brief overview of the timeline for applying for and receiving a VA loan in Maryland:
- Present Certificate of Eligibility (COE) from the VA or obtain one
- Preapproval process and underwriting submission, including loan application and financial documents
- Home search, offer process, and contract
- VA-approved appraisal and property inspection
- Final underwriting process and closing
The total time it takes for a VA loan to be submitted, processed, and finalized depends on the time of each step, including any delays. The Maryland VA has multiple regional processing offices, so each individual’s timeline may differ. However, we have broken down each step, including a predicted completion time, to help service members and their families prepare for the loan process.
1. Certificate of Eligibility (~5 days)
Before any lending or home-searching begins, service members must present proof to their lender that they qualify for a home loan backed by the VA. The Certificate of Eligibility (COE) must be requested either electronically or in person, and the expected turnaround time for these requests is around five business days.
Eligibility varies because the service member’s duty status, time served, and commitment can change the benefits they will receive. The minimum requirements for eligibility can also change. For example, National Guard members can now receive a COE after 90 days of active service, provided it includes at least 30 days of consecutive service.
Additionally, specific benefits depend on the service member’s financial condition, including their credit score and income. For example, Purchase Loans are only available to service members with satisfactory credit, while Adapted Housing Grants may be available to any service member with a qualified disability.
2. Preapproval and Underwriting (~7 days)
After obtaining a COE, the next step is the lender’s underwriting process, which requires submitting financial documents. These include pay stubs, tax returns, employment verification, debt-to-asset ratios, credit checks, and any other requested information. The lender will assess the service member’s eligibility based on how their financial condition meets the VA’s loan eligibility requirements. Preapproval usually processes within 7 days of document submission.
3. Home Search and Offer
The time spent searching for a home, contracting a builder, and making an offer can vary. One thing service members should keep in mind is that not every home is eligible for a VA loan. The Maryland property they choose may need to be within a specific price range, contain certain features, or be in a particular condition to align with the VA’s financial eligibility terms. This step is also not required for every loan, such as a refinance or home improvement.
4. Appraisal and Inspection (7-21 days)
The VA will send inspectors and appraisers to make sure the property meets minimum requirements. This process can vary in time depending on the home’s condition. Additionally, appraisal scheduling may be slower in more rural areas. While the inspection and appraisal process can be completed within a week, many service members wait as long as three weeks for the property to be inspected and approved.
5. Closing (~45 days)
The final underwriting and closing process is the most time-intensive part of the VA loan process. It can take as long as 45 days for the VA to thoroughly review and approve the loan, though it can go faster in some situations. Three days before closing, service members whose loans pass eligibility will receive a finalized closing disclosure detailing the loan terms and responsibilities, similar to any mortgage lending situation.
Consult Local Financial Professionals to Guide You Through the VA Loan Process
At Woodsboro Bank, we help service members, veterans, and their families recognize their individual loan timelines, conditions, requirements, and goals. Every VA loan is different, and eligibility for certain benefits is not assured. Our local team can help you work out the details and understand the VA’s process to secure the loan you need for your new home, home repair, or relocation.
Contact our financial advisors today to learn more about the VA loan process in Maryland and how you can prepare.