VA loans
VA loans — the best terms in American lending, if you earned them.
If you are eligible for a VA loan, it is almost always the loan you should take. No down payment, no monthly mortgage insurance, competitive rates, and an assumability feature that can become a genuine asset when you sell. There is no other program on the market with that combination.
The two things that trip people up are the funding fee and the appraisal. The funding fee is a one-time charge that can be financed into the loan, and it is waived entirely for veterans receiving service-connected disability compensation — a fact I have had to explain to more than one veteran who assumed they owed it. The appraisal is a VA-assigned order with its own timeline and its own minimum property requirements. Neither is a reason to look elsewhere. Both are reasons to start early.
Updated
VA at a glance
- Down payment
- None required
- Monthly mortgage insurance
- None, ever
- Funding fee, first use, no down
- 2.15% of the loan, financeable
- Funding fee, subsequent use
- 3.3%
- Funding fee exemption
- Service-connected disability compensation
- Credit floor
- No VA minimum; lender overlays apply
Right for you if
- Any eligible veteran or service member buying a primary residence
- Buyers with little saved — the loan genuinely closes at zero down
- Files where conventional PMI or FHA MIP would be expensive
- Veterans refinancing an existing VA loan, where the IRRRL is a very light process
- Buyers who want a loan a future buyer can assume
Know before you commit
- Primary residence only, with occupancy certification
- VA minimum property requirements: roof, mechanicals, water supply, wood-destroying insects
- The appraisal is VA-assigned; a low value triggers the Tidewater process rather than a quiet denial
- Entitlement can be partially tied up by an existing VA loan — worth checking before you shop
- Some listing agents misunderstand VA offers; that is a conversation, not a barrier
Eligibility, in plain terms
Eligibility runs off service history, and the document that proves it is the Certificate of Eligibility. I can pull most COEs electronically in minutes. Broadly: 90 continuous days of active duty during wartime, 181 days during peacetime, six years in the National Guard or Reserve, or eligibility as a surviving spouse of a service member who died in service or from a service-connected disability.
Entitlement is a separate idea from eligibility. Eligibility is whether you qualify at all; entitlement is how much of the VA guarantee you have available. If you already have a VA loan on another house, part of your entitlement is committed and your zero-down ceiling changes. This is exactly the kind of thing to check before you write an offer, not after.
The funding fee, and who does not pay it
| Situation | Down payment | Funding fee |
|---|---|---|
| First use | None | 2.15% |
| First use | 5% to 9.99% | 1.50% |
| First use | 10% or more | 1.25% |
| Subsequent use | None | 3.30% |
| Subsequent use | 5% to 9.99% | 1.50% |
| Subsequent use | 10% or more | 1.25% |
| IRRRL (VA to VA refinance) | n/a | 0.50% |
Statutory VA funding fee percentages for a purchase. The fee is normally financed into the loan rather than paid in cash. Veterans receiving service-connected disability compensation are exempt entirely, as are surviving spouses receiving DIC.
The VA appraisal, including Tidewater
VA assigns the appraiser rather than the lender choosing one, and the appraiser checks the property against VA minimum property requirements as well as valuing it. Expect attention to the roof, heating, water supply, sewage disposal, electrical, and in this part of the country a wood-destroying insect report.
If the appraiser is heading toward a value below the contract price, VA has a formal step called Tidewater: the appraiser notifies the lender and the parties get a short window to submit additional comparable sales before the value is finalized. It is a genuine opportunity, and it is one of the reasons your agent wants a lender who has been through it. Separately, VA has an appeal path — a Reconsideration of Value — after the fact.
Misconceptions worth putting down
- "VA loans are slow." They close on the same timelines as conventional loans in practice; the appraisal is the variable, so we order it the day the contract is signed.
- "You only get one." Entitlement is reusable, and it can be restored when a prior VA loan is paid off.
- "VA will not lend on a house that needs anything." Minimum property requirements are about safety and soundness, not cosmetics.
- "You need a 620 score." VA sets no minimum credit score. Lender overlays vary, and mine are worth asking about directly.
- "There is monthly mortgage insurance." There is not, on any VA loan, at any loan-to-value.
Refinancing with a VA loan
Two paths. The Interest Rate Reduction Refinance Loan — the IRRRL — moves an existing VA loan to a lower rate with minimal documentation, frequently no new appraisal and a 0.5% funding fee. The VA cash-out refinance lets you pull equity out, and can also be used to refinance a non-VA loan into VA financing, which is how some veterans get rid of FHA mortgage insurance permanently.
VA loans are guaranteed by the U.S. Department of Veterans Affairs. Eligibility is determined by VA. Funding fee percentages are set by statute and subject to change.
In their words
Clients who used va
#1 Choie for any Mortgage first time buy, refi, and Cash out Refi. Great customer service, responds to every call and text, knowledgeable and experienced, Excellent at communication before performing task to his clients. Answers any questions in a perfessional manner.
Travis and his team are just absolutely wonderful. We just closed on our new house and he was with us every step of the way. This is the 4th time we have used him as our lender over the years and he never disappoints. He is consistent with his knowledge but does it in a way that you feel like you are old friends with him. I tell everyone I know looking to buy a home to call him. I honestly know they will get the same amazing care my husband and I receive by working with him. Can’t say enough good things about him…. If you are looking to buy I highly suggest you reach out to him and his team!
Questions
VA, answered
Yes, on a purchase within your available entitlement. Zero down is the actual structure, not a promotion. You still need funds for closing costs, though the seller can pay them and the funding fee can be financed.
Veterans receiving compensation for a service-connected disability, veterans who would be entitled to that compensation but receive retirement or active-duty pay instead, and surviving spouses receiving Dependency and Indemnity Compensation. The exemption is documented in the file and applied at closing.
There is no VA loan limit for a veteran with full entitlement — the county conforming limit stopped capping zero-down VA lending in 2020. If your entitlement is partially used, limits re-enter the picture. That is worth checking before you shop.
Yes. Entitlement is reusable, and it is restored when a previous VA loan is paid in full. Some veterans also hold two VA loans at once using remaining entitlement, typically after a permanent-change-of-station move.
No. VA financing requires you to occupy the home as your primary residence. A multi-unit property is possible if you live in one of the units.
VA publishes no minimum. Individual lenders set their own overlays, and I will tell you straight where mine sits and whether your file clears it. Residual income — cash left over after all obligations — often matters more to a VA underwriter than the score does.
More in the full mortgage FAQ, or ask me directly.
Fairway Independent Mortgage Corporation is not affiliated with any government agencies. These materials are not from HUD, VA, USDA or FHA, and were not approved by HUD, VA, USDA or any other government agency. This is not an offer to enter into an agreement or a commitment to lend. Not all applicants will qualify. Information and rates are subject to change without notice. All loans are subject to credit review and approval. Program guidelines, fees and loan limits are set by the applicable agency or investor and are subject to change. Fairway Home Mortgage is a division of Fairway Independent Mortgage Corporation. NMLS Entity ID #2289.
Next step
Find out what you qualify for before you shop.
A documented pre-approval takes about 24 hours once your paperwork is in, costs nothing, and tells you whether va is genuinely your best route.