Do VA Loans Require More Paperwork?

Plenty of the steps in buying a house are exciting. You get to explore a new neighborhood, picture yourself in a new space, and walk through lots of different properties to figure out what you like. 

The same is true if you plan to refinance. You’re probably thinking about undertaking the refi because some major perk awaits you, like a lower interest rate or cash in your pocket. 

There’s just one major hurdle you need to get over first: all of the paperwork. Whether you want to use a VA loan to buy a house or refinance your mortgage, there’s plenty involved. 

The news is somewhat mixed here. On the bad side, VA loans often do require more paperwork than other mortgages. On the good side, a lender can handle a lot of the added documentation for you. And as an extra perk, if you already have a VA loan and you want to refinance, the VA offers a streamlined refinance (the interest rate reduction refinance loan [IRRRL]) that’s specifically designed to keep paperwork to a minimum. 

When a VA loan means more paperwork to buy a home

In a lot of ways, the documentation you have to provide to get a VA loan isn’t so different from any other mortgage. 

You’ll need to provide proof of income (e.g., W-2s, pay stubs, bank statements) with any kind of home loan, for example. VA lenders might use that information slightly different — specifically, to verify that you meet the VA’s residual income requirement. But you’d need to come up with those financial records for pretty much any home loan application. 

In other cases, VA loans come with added document requirements but they’re simple. The VA only backs loans for homes that will be owner-occupied, for example. But you just need to sign something certifying that you intend to occupy the property you’re buying. It shouldn’t be a big lift to tick that box.

All of that said, there are a few instances in which choosing a VA loan means more paperwork that’s a bit of a hassle. 

The certificate of eligibility (COE)

First and foremost, VA loans require one core piece of paperwork that other mortgages don’t. It’s called a certificate of eligibility (COE), and it shows the VA that you’ve met the service requirement to get a VA loan. 

You can get the COE yourself through the VA’s website or, if you’ve already chosen a lender, you can have them get it on your behalf. Still, you might need to provide documentation proving your military service, like a DD Form 214 or a Statement of Service. 

The COE definitely adds a paperwork to-do when you’re getting a VA loan. But it’s a must if you want to get a mortgage backed by the VA, and the perks that come with it (e.g., 0% down, no mortgage insurance, lower interest rates). 

VA appraisals

Every VA loan requires an appraisal. This isn’t different from most mortgages. The majority of lenders use an appraisal to make sure what you’re buying is worth what you’re paying for it. Plus, with VA loans and other mortgages, the lender usually sets up the appraisal and handles all the paperwork for you.

There is one area where this can get sticky, though. If the VA appraiser finds something wrong with the house, like a pest infestation or faulty plumbing, you’ll typically need to get it repaired before you can buy. The VA won’t stand behind your loan otherwise. That can mean extra documentation to show that the repair or remediation has been completed. 

If you want to buy a condo

In order to use a VA loan to buy a condo, you need to buy in a condo development that’s been approved by the VA. 

If you’re looking at a building that’s already been VA-cleared, great. 

But if you want to buy a condo in a property the VA hasn’t evaluated yet, you’ll need to go through the process to get it approved. Your lender handles the bulk of this, but the added paperwork can slow down your purchasing timeline. 

The paperwork situation if you’re refinancing into a VA loan

If you want to refinance into a VA loan, the documentation required depends on the route you choose. 

If you currently have a VA loan and you don’t want to cash out any of your equity, you have the option to refinance with an IRRRL. This streamlined refinance minimizes paperwork. 

But if you currently have a non-VA mortgage and you want to refi into a loan backed by the VA, you’ll need to use a VA cash-out refinance (even if you don’t want to take cash out). You’ll be subject to all the same underwriting paperwork as a new VA purchase loan, including the COE if you don’t already have one. 

Tips to minimize paperwork for your VA loan

While a VA loan might require more documentation, that doesn’t mean the process has to take longer or be more painful than any other mortgage. You can do a few things to help yourself out here. 

First, gather up the documentation you’ll need. You might start working on getting your COE and gathering up pay stubs, tax returns, and bank statements, for example. 

It also helps to work with a lender who’s experienced in VA loans. This way, they can efficiently handle the extra documentation that comes with a VA loan, like the VA appraisal or condo approval. 

If you’re currently on the hunt for a VA lender, check out this table. It highlights leading VA lenders and the interest rates they’re currently offering. Or if you want to refinance, this table is for you.

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