Course Catalog / BMU 106 / Lesson 5 of 5

BMU 106

Quick review

1. Which program needs a 10% rating?

See the answer

VR&E.

2. How long must you serve after Sept. 10, 2001 for the Post 9/11 GI Bill?

See the answer

Generally at least 90 days of active duty.

Why this matters

Two more programs can protect your family: VA backed home loans and VA life insurance. Both have deadlines or papers that are easy to miss.

Then you will finish your one page VA benefits map, so you know what to check next.

Start with what you already do

You already know a lender checks your credit before a loan.

Common belief: VA gives you the home loan.

What is actually true: For most VA backed loans, a private lender, like a bank or credit union, makes the loan. VA backs part of it. You still must meet the lender's credit and income rules.

Key words

COE

Certificate of Eligibility. It shows a lender you qualify for a VA backed loan based on your service.

VGLI

Veterans' Group Life Insurance. Lets you keep coverage after you leave service.

VALife

Veterans Affairs Life Insurance, for Veterans with a service connected rating.

VA backed home loans

• Get a COE first. Service members usually need 90 days in a row. Veterans who served since August 2, 1990 generally need 24 months in a row, or the full period (at least 90 days) they were called for.
• A VA backed purchase loan often has no down payment if the price is not above the appraised value, and no private mortgage insurance.
• You may pay a one time VA funding fee, plus interest and closing costs. You do not pay the funding fee if you get VA compensation for a service connected disability, and in a few other cases.
• You must meet the lender's credit and income rules and live in the home.

The funding fee, in numbers

The fee is a percent of the loan, not the price. For a first use with less than 5% down, VA lists 2.15%. With 5% down it is 1.5%, and with 10% down it is 1.25%. After your first use with less than 5% down, it is 3.3%. You can pay it at closing or add it to the loan. VA gives this example: a $200,000 home with $10,000 down is a $190,000 loan, and 1.5% of that is a $2,850 fee.

Life insurance after service

Text version of this figure

Your VA benefits map. One page. Six programs. One next step.

1. Step 1, List needs: Care, compensation, school, job, home, insurance.
2. Step 2, Mark each program: Likely, not sure, or not for me.
3. Step 3, Where to check: VA.gov page, 800 698 2411, one accredited VSO.
4. Step 4, Papers: DD214 and what your top program asks for.
5. One next action: Write it with a date.
6. Keep it private: No SSN, VA login, or account numbers on the map.

Source: BMU 106 lessons and VA.gov program pages (Oct 29, 2026).

Worked example: Rosa's map, top lines

Program	Status	Next
Health care	Likely	Applied by phone. Waiting.
Disability compensation	Not sure	Ask VSO about her ears.
Education	Likely	Look at BMU 203.
Careers (VR&E)	Not for me now	No rating yet.
Home loan	Likely	Request COE on VA.gov.
Life insurance	Not sure	Ask about VALife if rated.

Her one next action: call the VSO by Friday. Rosa is a made up example.

Practice: Work out a funding fee

A made up Veteran, Ken, uses his VA home loan for the first time on a $250,000 home with no down payment. He has no VA rating. What is his funding fee? What would change if he had a 10% compensation rating?

Check your practice: feedback

$5,375. First use with less than 5% down is 2.15%, and 2.15% of $250,000 is $5,375. With a compensation rating, he would not pay the funding fee at all. He would still pay closing costs and interest.

Common mistakes

• Missing the VGLI window. Mark 1 year and 120 days after you leave on your calendar.
• Thinking VA makes the loan. A private lender makes it. VA backs it.
• Writing private numbers on your map. Leave them off.

Check your understanding

Take it as many times as you like. Pick an answer, then open the feedback.

1. What does a COE do?

1. Shows a lender you qualify
2. Pays your down payment
3. Sets your interest rate

See the answer and feedback

A is correct. Yes. It proves your service based eligibility.

B: It does not pay money. Review VA backed home loans.

C: The lender sets the rate. Review VA backed home loans.

2. Dan left service 200 days ago and had SGLI. What is true about VGLI?

1. He missed the window.
2. He can apply without proving good health.
3. He needs a 100% rating.

See the answer and feedback

B is correct. Yes. Within 240 days, no health proof is needed.

A: The window is 1 year and 120 days. Review Life insurance after service.

C: VGLI needs SGLI, not a rating. Review Life insurance after service.

3. Which detail does NOT belong on your benefits map?

1. The VA phone line
2. Your next action
3. Your Social Security number

See the answer and feedback

C is correct. Right. Keep it off the map.

A: That is where to check. Review the figure.

B: That is the most important line. Review the figure.

Capstone rubric

This is your course project. It is checked on 6 rows: Needs, Status, Where to check, Papers, Next action, Privacy. See what Ready means on the Course project page.

When it is done, build it on the Course project page and press Check my project. Your certificate needs it.

Use it: your follow up plan

• In 7 days: Do your one next action. Update your map.
• In 30 days: Check what changed. Retake the self check. Pick the next program to work on.
• Put both dates on your calendar now.

Your job aid: print or save the VA Benefits Map page.

Keep learning

• BMU 203 Mission: Degree Without the Debt: education benefits in depth.
• BMU 301 From Denied to Rated: disability claims in depth.
• VA accreditation search: find a free accredited VSO.

One question for us: What one change would make this course more useful for you?

Next up

You finished the lessons. Now take the Posttest. Score 80% or higher to pass, and retake it as often as you need. Then answer a short optional survey and get your Certificate of Completion.

Your certificate needs both the Posttest and your course project.

Key words: Course glossary (A to Z, with the lesson that teaches each one).

Stuck or have a question? Ask BMU Learner Support.

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