VA Loans: Zero Down Payment for Veterans & Military

VA loans are one of the most powerful benefits available to those who have served our country. With no down payment required, no PMI, and competitive interest rates, VA loans make homeownership more accessible and affordable for millions of veterans, active-duty service members, and eligible spouses.

What Are VA Loans?

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs. Created in 1944 as part of the GI Bill, this program helps veterans and military members achieve homeownership with better terms than conventional financing.

Key Benefits

• 0% Down Payment: No money down required
• No PMI: Save hundreds monthly
• Competitive Rates: Often lower than conventional
• Assumable: Attractive selling feature
• No Prepayment Penalties: Pay off anytime

Who Qualifies for VA Loans?

Eligible Service Members

• Active Duty: Currently serving
• Veterans: Honorably discharged
• National Guard: 6+ years service
• Reserves: 6+ years service
• Surviving Spouses: Of eligible veterans

Service Requirements

• Active Duty: 90 continuous days during wartime or 181 days during peacetime
• National Guard/Reserves: 6 years service or 90 days active duty
• Post 9/11: 90 days active service
• Peacetime: 181 days continuous active duty

Certificate of Eligibility (COE)

You'll need a COE to prove eligibility:

• Apply online through eBenefits
• Request through your lender
• Mail VA Form 26-1880
• Usually processed within minutes online

VA Loan Benefits Explained

No Down Payment

Unlike conventional loans requiring 3-20% down, VA loans offer 100% financing. On a $400,000 home, that saves you $12,000-$80,000 upfront.

No Private Mortgage Insurance

Conventional loans require PMI with less than 20% down. VA loans never require PMI, saving you $200-500+ monthly.

Lower Interest Rates

VA loans typically offer rates 0.25-0.50% lower than conventional loans, saving thousands over the loan term.

Flexible Credit Requirements

While the VA doesn't set minimum credit scores, most lenders accept scores as low as 620, with some going lower.

Assumable Loans

VA loans can be assumed by qualified buyers, making your home more attractive when selling, especially if rates have risen.

VA Funding Fee

What It Is

A one-time fee that helps fund the VA loan program:

• Can be financed into the loan
• Waived for disabled veterans
• Varies by down payment and usage

Fee Structure (2024)

First Use:

• 0% down: 2.15%
• 5-9% down: 1.50%
• 10%+ down: 1.25%

Subsequent Use:

• 0% down: 3.30%
• 5-9% down: 1.50%
• 10%+ down: 1.25%

Fee Exemptions

Waived for:

• Veterans with service-connected disabilities
• Purple Heart recipients on active duty
• Surviving spouses of veterans who died in service

VA Loan Limits

No Loan Limits with Full Entitlement

If you have full entitlement, there's no maximum loan amount. You can borrow what you qualify for based on income and credit.

With Remaining Entitlement

2024 baseline limit: $766,550 (higher in expensive areas)

• Applies if you have an existing VA loan
• Or defaulted on a previous VA loan

Multi-Unit Properties

Higher limits for 2-4 unit properties when owner-occupied.

Property Requirements

Eligible Property Types

• Single-family homes
• Condos (VA-approved)
• Townhomes
• Multi-unit (2-4 units, owner-occupied)
• Manufactured homes (on permanent foundation)

VA Appraisal Requirements

The VA appraisal ensures the property is:

• Safe, sound, and sanitary
• Worth the purchase price
• Free from health hazards
• Move-in ready condition

Minimum Property Requirements (MPRs)

• Safe drinking water
• Adequate heating
• Working electricity
• Secure roofing
• No pest infestations
• Lead paint remediation (pre-1978)

The VA Loan Process

1. Obtain Your COE

• Apply online (fastest)
• Through your lender
• By mail to VA
• Usually instant online

2. Get prequalified

• Choose VA-approved lender
• Submit financial documents
• Receive prequalification letter
• Know your budget

3. Find Your Home

• Work with VA-savvy agent
• Consider VA appraisal requirements
• Make competitive offers
• Include VA escape clause

4. VA Appraisal

• Ordered by lender
• Checks value and condition
• Valid for 6 months
• May require repairs

5. Underwriting

• Lender reviews everything
• Verify income/assets
• Clear conditions
• Final approval

6. Closing

• Sign documents
• Pay closing costs
• Receive keys
• Move into your new home!

VA Loan Types

VA Purchase Loans

• Buy a primary residence
• New or existing homes
• 0% down payment
• Full VA benefits

VA Cash-Out Refinance

• Access home equity
• Up to 100% of value
• Pay off debt
• Home improvements

VA IRRRL (Streamline Refinance)

• Lower your rate
• No appraisal required
• No income verification
• Reduced funding fee

VA Renovation Loans

• Buy and renovate
• Finance repairs
• One loan for all
• Based on after-repair value

Special VA Programs

Native American Direct Loan (NADL)

• For Native American veterans
• On Federal Trust Land
• Direct from VA
• Special terms

Adapted Housing Grants

• For disabled veterans
• Modify homes for accessibility
• Up to $101,754 (2024)
• Lifetime benefit

Energy Efficient Mortgages

• Add $6,000 for improvements
• Solar panels
• Insulation upgrades
• Energy-saving features

VA Loan Advantages

For Home Buying

• Competitive offers without cash
• Seller-paid closing costs allowed
• No loan limits with full entitlement
• Easier qualification

For Refinancing

• Streamline option available
• Cash-out to 100% value
• No prepayment penalties
• Keep your benefit

Long-Term Benefits

• Build equity faster
• Lower monthly payments
• Assumable by buyers
• Reusable benefit

Common VA Loan Myths

Myth: VA Loans Take Forever

Reality: VA loans close in 30-45 days, similar to conventional loans.

Myth: Sellers Don't Like VA Offers

Reality: With proper education, sellers appreciate VA buyers' strong financing.

Myth: You Can Only Use It Once

Reality: Your VA benefit is reusable and can be restored.

Myth: Only for First-Time Buyers

Reality: Veterans can use VA loans multiple times throughout life.

Tips for VA Loan Success

Work with VA Specialists

• Choose experienced VA lender
• Find VA-savvy real estate agent
• Understand the process
• Know your rights

Prepare Your Finances

• Check your credit
• Gather documents
• Calculate affordability
• Save for closing costs

Make Strong Offers

• Get fully prequalified
• Explain VA benefits to sellers
• Be flexible on closing
• Include personal letter

VA Loan Costs

Closing Costs

• 2-5% of loan amount
• Can be seller-paid
• Some fees limited by VA
• No lender can charge more than 1% origination

Ongoing Costs

• Principal & interest
• Property taxes
• Homeowners insurance
• HOA fees (if applicable)
• No PMI ever!

Ready to Use Your VA Benefit?

You've earned this benefit through your service. Let us help you make the most of it:

• Expert VA loan guidance
• Competitive rates
• Fast, smooth closings
• Veteran-owned business

Take Action:

• Check VA Eligibility - Get your COE
• Calculate VA Payment - See your savings
• View VA Rates - Current VA rates
• Talk to VA Expert - Get personal help

VA Loan FAQs

Q: What credit score do I need for a VA loan? A: The VA has no minimum, but most lenders require 620+. Some accept lower scores.

Q: Can I have two VA loans at once? A: Yes, if you have remaining entitlement and qualify based on income.

Q: Do I have to pay the funding fee? A: Not if you're disabled or receiving VA compensation. Otherwise, it can be financed.

Q: Can I use a VA loan for investment property? A: No, VA loans are only for primary residences you'll occupy.

Q: What if the appraisal comes in low? A: You can negotiate price, pay the difference, or use the VA escape clause to cancel.

Ready to use your VA loan benefit? Our team specializes in VA loans and understands the unique needs of military families. Start your VA loan or contact our VA experts today.