WSFS Bank offers VA-backed mortgage solutions tailored to the needs of veterans, active duty service members, National Guard and Reserve members, and eligible surviving spouses. The VA loan program, guaranteed by the U.S. Department of Veterans Affairs, is designed to provide competitive financing with features intended to reduce upfront costs and long-term expenses for qualified borrowers. WSFS Bank combines the benefits of the VA guarantee with personalized service, flexible underwriting, and products that address purchase, refinance, and special financing situations.

Key Benefits

• No down payment required in most cases, helping borrowers purchase a home without liquidating savings.
• No private mortgage insurance (PMI), which lowers monthly payments compared to conventional loans with similar loan-to-value ratios.
• Competitive interest rates backed by WSFS Bank’s lending experience and the VA guarantee.
• Ability to finance closing costs and include certain fees in the loan amount when permitted.
• Refinancing options such as Interest Rate Reduction Refinance Loans (IRRRL) for eligible borrowers to reduce payments or interest rate.
• Consideration for special circumstances, such as residual income guidelines and service-related allowances, that may make homeownership more accessible.

Eligibility and Documentation

Eligibility for a VA loan through WSFS Bank requires a valid Certificate of Eligibility (COE) proving military service and entitlement. Eligible applicants typically include veterans, active duty members, certain survivors, and qualifying members of the National Guard and Reserves. WSFS can assist applicants in obtaining or verifying the COE as part of the application process.

Common documentation requested during application and underwriting includes proof of income (pay stubs, W-2s, tax returns), employment verification, bank statements, asset verification, credit reports, and the COE. Additional documentation may be required for self-employed borrowers, those with other sources of income, or borrowers with unique financial circumstances.

Loan Types and Uses

WSFS Bank offers a variety of VA loan options to meet different needs:

• Purchase Loans — Financing for primary residences, including single-family homes, condominiums (in approved complexes), and certain multi-unit properties when borrower occupancy rules are met.
• VA Interest Rate Reduction Refinance Loan (IRRRL) — A streamlined refinance to reduce the interest rate or convert an adjustable-rate mortgage to a fixed-rate mortgage with minimal documentation for qualified borrowers.
• Cash-Out Refinance — Allows eligible veterans to refinance an existing mortgage and access home equity for debt consolidation, home improvements, or other needs, subject to VA guidelines.
• Energy Efficient and Rehabilitation Financing — Options to include certain eligible improvement costs in the loan amount where permitted by VA rules and WSFS lending policies.

Underwriting and Approval Considerations

WSFS Bank underwrites VA loans in accordance with VA guidelines combined with the bank’s prudent lending standards. Key factors evaluated by underwriters include credit history, stable and sufficient income, employment history, residual income (which measures available income after major expenses), and the appraised value of the property. While the VA provides flexibility relative to conventional underwriting, WSFS aims to ensure borrowers have the capacity to maintain mortgage payments along with other living expenses.

Credit requirements may be more flexible than some conventional programs, but a demonstrated pattern of timely payments and responsible credit management improves approval odds and may yield better pricing. Residual income guidelines and compensating factors are considered for applicants with nontraditional incomes or limited credit histories.

Costs and Fees

While VA loans eliminate private mortgage insurance, borrowers are typically responsible for customary closing costs, such as appraisal fees, title services, recording fees, and certain permissible lender fees. In most cases, sellers may agree to pay some or all of the buyer's closing costs, and eligible borrowers may finance certain costs into the loan amount where VA rules allow.

The VA also charges a funding fee in most situations, which helps offset program costs. The funding fee varies depending on factors such as military category, whether it is a first-time or subsequent use of VA loan entitlement, and whether the borrower makes a down payment. Some veterans with service-connected disabilities may be exempt from the funding fee.

Application Process with WSFS Bank

1. Prequalification — Discuss your goals and financial situation with a WSFS loan officer to receive an initial assessment and estimate of purchasing power.
2. Loan Application — Submit required documentation, including COE, income verification, and asset statements to begin full underwriting.
3. Property Appraisal and Underwriting — A VA appraisal assesses market value and property suitability. Underwriters review documentation and property findings to reach a decision.
4. Clear to Close and Funding — Once conditions are satisfied, the loan receives final approval and closing is scheduled. Funds are disbursed and ownership is transferred per closing instructions.

Why Choose WSFS Bank for a VA Loan?

WSFS Bank combines VA program advantages with local expertise, personalized service, and streamlined processes aimed at reducing friction during home purchase and refinance transactions. Borrowers benefit from lenders familiar with military-specific considerations, assistance obtaining or verifying COE documentation, and guidance through VA appraisal and underwriting nuances. WSFS’ approach emphasizes clear communication, timely processing, and options that align with veterans’ financial goals.

Common Questions

Can VA loans be used for second homes or investment properties? VA loans are intended for primary residences. Eligible properties must meet occupancy requirements for the borrower; investment property or vacation home financing is generally not permitted under VA guidelines.

Can I use a VA loan more than once? Yes. Eligible borrowers may use their VA entitlement multiple times subject to remaining entitlement, loan payoff, or restoration of entitlement. WSFS can discuss entitlement scenarios and refinances.

Is there assistance for borrowers with lower credit scores? VA loans often offer flexibility, but each application is evaluated individually. WSFS considers compensating factors, residual income, and overall borrower strength during underwriting.