VA Home Loan Overview: Understanding Benefits, Eligibility, and How the Program Supports Military Homebuyers

We work with VA-eligible borrowers to help them understand their options, navigate the loan process, and explore financing solutions that may support their homeownership goals.

What Is a VA Loan?

The VA loan program was created in 1944 as part of the GI Bill and continues to provide home financing opportunities for those who meet the service requirements. VA loans are not issued directly by the government — they are offered through approved lenders and backed by a partial guarantee from the Department of Veterans Affairs.

This VA backing helps protect lenders from certain risks and allows us to offer flexible terms and more favorable financing for qualified borrowers.

Key Features of VA Loans

• No Down Payment Required: In most cases, eligible borrowers may finance 100% of the home’s value without a down payment.
• No Monthly Mortgage Insurance: Unlike many other loan types, VA loans do not include monthly private mortgage insurance (PMI).
• Competitive Interest Rates: The VA guarantee may allow lenders to offer lower interest rates than conventional options.
• Flexible Credit Guidelines: VA loans typically offer more flexible qualification standards than other programs.
• Limited Closing Costs: The VA limits certain closing fees and allows sellers to contribute toward costs.
• Reusable Benefit: VA loan benefits may be used multiple times throughout a borrower’s lifetime, depending on eligibility and entitlement.

Who Is Eligible for a VA Loan?

VA loan eligibility is based on military service history and discharge status. Borrowers may be eligible if they meet one or more of the following:

• Served 90 consecutive days during wartime
• Served 181 days during peacetime
• Completed 6 years of service in the National Guard or Reserves
• Are an unremarried surviving spouse of a Veteran who died in service or from a service-connected cause

A Certificate of Eligibility (COE) is required to verify entitlement. We assist borrowers with requesting the COE through the VA’s online system.

VA Loan Types

There are several VA loan types that support different home financing goals:

• VA Purchase Loan: Helps eligible borrowers buy a primary residence with no down payment in many cases.
• VA IRRRL (Interest Rate Reduction Refinance Loan): A streamlined refinance for existing VA borrowers looking to reduce their rate or payment.
• VA Cash-Out Refinance: Allows qualified borrowers to refinance their mortgage and access home equity as cash.
• VA Renovation Loan: Provides financing for home repairs or upgrades alongside a purchase or refinance.

Each option includes its own guidelines and benefits. We help determine which loan type aligns with your current needs and long-term plans.

What Is the VA Funding Fee?

Most VA loans include a one-time VA funding fee, which helps reduce the program’s cost to taxpayers and ensure its availability for future Veterans.

The fee is based on factors such as:

• First-time or subsequent use of the VA benefit
• Down payment amount (if any)
• Type of military service

The VA funding fee may be financed into the loan. Some borrowers, such as those receiving VA disability benefits, may be exempt from paying the fee.

Properties Eligible for VA Loans

VA loans may be used to purchase a variety of homes, as long as the borrower intends to use the property as a **primary residence** and the home meets **VA Minimum Property Requirements (MPRs)**.

Common property types include:

• Single-family homes
• VA-approved condominiums
• Multi-unit homes (up to four units, with one unit occupied by the borrower)
• Manufactured homes on a permanent foundation (subject to lender approval)

VA loans cannot be used for vacation homes or investment properties.

Is the VA Loan Benefit One-Time Use?

No. The VA loan is a lifetime benefit. Eligible borrowers may use their entitlement more than once, provided they meet the VA’s eligibility and occupancy guidelines. In many cases, borrowers may also restore their entitlement after paying off or selling a home financed with a VA loan.

What to Expect When Using a VA Loan

We help guide VA borrowers through every step of the process:

1. Prequalification: Review service eligibility, credit, and income to determine next steps.
2. COE Request: Obtain your Certificate of Eligibility through the VA portal.
3. Home Search: Work with a knowledgeable real estate agent to find VA-eligible homes.
4. Loan Processing: Complete the loan application and prepare for underwriting.
5. VA Appraisal: A VA-approved appraiser evaluates the home to ensure it meets MPRs.
6. Closing: Finalize your documents and move into your new home.

Our team is here to support you from start to finish.