VA Home Loans: The Benefit You Earned, Explained by Someone Who Gets It
Zero down payment, no monthly mortgage insurance, and more flexibility than most veterans realize. I've been originating VA loans for over two decades — let me walk you through what this benefit actually does.
The VA Loan Is the Best Mortgage Program in America
I don't say that lightly, and I don't say it because it sounds good in a headline. After 23 years of originating every type of mortgage — FHA, conventional, jumbo, non-QM — I can tell you that no other program comes close to what the VA home loan offers eligible veterans, active-duty service members, and surviving spouses.
Zero down payment on a primary residence. No monthly mortgage insurance — ever. Typically competitive pricing because the VA guaranty reduces lender risk. And unlike FHA, where the mortgage insurance stays for the life of the loan, with VA you never have it in the first place. That alone can save you hundreds of dollars per month compared to other programs.
But here's what I've learned over two decades of working with military families: the VA loan benefit is frequently misunderstood, even by the loan officers handling them. Borrowers get told they need a 620 credit score (the VA has no minimum). They get told there's a loan limit (there isn't, with full entitlement). They get told the process takes longer (it doesn't, when handled correctly). These are lender overlays and myths, not program realities — and the difference matters.
As a broker, I work with multiple VA-approved lenders, each with different overlays, pricing, and turn times. That means I can find the lender that best fits your specific situation instead of making you fit into one bank's VA program. That's what 23 years of doing this buys you.
What Makes the VA Loan Different
These aren't marketing bullet points — they're genuine program advantages I explain to veterans every single week.
Zero Down Payment
With full entitlement, there is no VA-imposed loan limit. You can finance the entire purchase price with $0 down — even on a $700,000 or $800,000 home — as long as you qualify on income and credit.
No Monthly Mortgage Insurance
FHA has MIP. Conventional has PMI. VA has neither. That's not a small thing — on a $400,000 loan, eliminating monthly mortgage insurance can save you $150 to $250 per month compared to FHA.
Reusable Benefit
Your VA loan benefit doesn't expire after one use. Pay off the loan and sell the property, and your entitlement can be restored. You can even have two VA loans simultaneously in certain situations, like a PCS move.
Multi-Unit Properties
Buy a duplex, triplex, or fourplex with $0 down as long as you occupy one unit. Rent the others and let the tenants cover your mortgage. This is one of the most powerful investment strategies available to veterans.
Who Is Eligible for a VA Loan?
Eligibility is determined by your Certificate of Eligibility (COE), which I can pull electronically in minutes.
Active Duty
Currently serving
- 90 continuous days during wartime
- 181 continuous days during peacetime
- Statement of service from commanding officer
- Can use benefit while still serving
Veterans
Honorably discharged
- 24 continuous months of active duty (post-9/11)
- 90 days wartime / 181 days peacetime (pre-9/11)
- DD-214 with honorable or general discharge
- Other-than-honorable may qualify on case-by-case basis
Guard & Reserve
6+ years of service
- 6 years of honorable service in Selected Reserve or National Guard
- 90 days of active duty under Title 10 orders
- Discharged honorably or placed on retired list
- NGB Form 22 or equivalent documentation
Surviving Spouses
If you are the un-remarried surviving spouse of a veteran who died in service or from a service-connected disability, you may be eligible for VA loan benefits. Surviving spouses of veterans who were prisoners of war or missing in action may also qualify. I've helped surviving spouses navigate this process — it's a benefit that's often overlooked, and it can make a tremendous difference. Contact the VA directly or reach out to us to check your eligibility.
Full Entitlement vs. Partial Entitlement: Why This Matters
This is the VA loan topic that confuses the most people — including many loan officers. Let me explain it plainly, because it directly affects how much you can borrow with zero down.
Full Entitlement (No Loan Limit)
You have full entitlement if you've never used your VA loan benefit, or if you've used it before but paid off the loan and sold the property (and had your entitlement restored). With full entitlement, there is no VA-imposed loan limit. This changed in 2020 with the Blue Water Navy Vietnam Veterans Act. You can buy a $500,000 home or a $1,200,000 home with zero down — the VA doesn't cap it. The only limits are what you can qualify for based on income, credit, and the lender's guidelines.
Partial Entitlement (County Limits Apply)
You have partial entitlement if some of your entitlement is currently tied up — typically because you have an existing VA loan you haven't paid off, or you had a previous VA loan that resulted in a default or foreclosure. With partial entitlement, your county's conforming loan limit determines how much you can borrow at zero down. For 2026, the baseline conforming limit is $832,750 (up from $806,500 in 2025). High-cost areas can go up to $1,249,125.
How Partial Entitlement Math Works
The VA guarantees 25% of the county loan limit. If you're using partial entitlement and some of that guarantee is already in use, the VA will guarantee 25% of the county limit minus whatever entitlement you've already used. If your desired loan amount requires more guarantee than you have available, you'll need a down payment to cover the gap — specifically, 25% of the amount above your available guarantee. I know this sounds complicated, and honestly, it's the kind of calculation that trips up a lot of loan officers. I've done these calculations thousands of times. Give me your Certificate of Eligibility and ten minutes, and I'll tell you exactly where you stand.
The VA Loan Process: What to Expect
I've closed VA loans in every market condition and in dozens of states. The process is straightforward when handled by someone who actually knows VA guidelines — not someone who has to call their underwriter for every question. Here's how it works with us:
Step 1: Obtain Your Certificate of Eligibility
The COE confirms your VA loan eligibility and shows your available entitlement. I can pull this electronically through the VA's portal in most cases — it takes minutes, not days. If there's an issue with the electronic pull (which sometimes happens with Guard and Reserve members), we can request it directly from the VA with your DD-214 or NGB Form 22.
Step 2: Full Pre-Approval (Not a Quick Letter)
I pre-underwrite every VA file. That means I review your income documents, credit report, assets, and COE before you start shopping. I calculate your residual income (the VA's unique qualification metric), verify your entitlement status, and determine your maximum purchase price. When I issue a pre-approval, it means something. Use our mortgage calculator to start exploring your numbers.
Step 3: Go Under Contract and Order the VA Appraisal
Once you're under contract, I order the appraisal through the VA's portal. VA appraisals include Minimum Property Requirements (MPRs) — health and safety checks like working utilities, adequate roofing, no lead-based paint hazards, and safe access. This occasionally catches issues that a conventional appraisal would not, so I evaluate properties early to flag anything that might cause a problem.
Step 4: Underwriting and Conditional Approval
Because I pre-underwrite, we typically receive a clean conditional approval or a short list of standard documentation conditions. VA underwriting has some unique elements — the residual income test, the funding fee calculation, and the COE verification — but these are all things I've accounted for before submission. No surprises.
Step 5: Clear to Close
After all conditions are met, the lender issues a clear to close. You review the closing disclosure (required three business day review period per CFPB regulations), sign at the title company, and the home is yours. From contract to close, most VA purchases take 30 to 45 days. We frequently close on time or early.
The VA Funding Fee: What It Costs and Who's Exempt
The VA funding fee is a one-time charge that helps fund the VA loan program so it can continue operating without requiring monthly mortgage insurance from borrowers. It's the trade-off for the program's benefits, and in most cases it can be financed into the loan amount so you don't pay it out of pocket at closing.
2026 VA Funding Fee Rates — Purchase Loans
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a $400,000 purchase with zero down (first use), the funding fee is $8,600 (2.15%). Financed into the loan, your total loan amount becomes $408,600. That sounds like a lot, but compare it to what you'd pay in monthly mortgage insurance on an FHA loan over 30 years — the VA funding fee is almost always less expensive in total.
Other Funding Fee Scenarios
- VA IRRRL (streamline refinance): 0.5% of the new loan amount
- VA cash-out refinance: 2.3% (first use) or 3.6% (subsequent use)
- Manufactured homes: 1.0%
- Loan assumptions: 0.5%
Who Is Exempt From the Funding Fee?
The following borrowers pay no funding fee at all — this is a significant savings that roughly one-third of VA borrowers qualify for:
- Veterans receiving VA disability compensation for a service-connected disability (10% or higher rating)
- Veterans entitled to receive VA disability compensation but receiving retirement or active duty pay instead
- Active-duty service members who have received a Purple Heart on or before the closing date
- Un-remarried surviving spouses of veterans who died in service or from a service-connected disability
If you receive a disability rating after closing, you may be eligible for a retroactive refund of your funding fee. Contact the VA's regional loan center if this applies to you.
VA vs. FHA vs. Conventional: How Do They Compare?
If you're VA-eligible, you always have options. Sometimes VA is the clear winner. Sometimes — depending on your credit score, down payment, and how long you plan to keep the loan — conventional or even FHA might make more sense. I run every eligible veteran's numbers through multiple programs so we know for certain which one costs the least.
| Factor | VA | FHA | Conventional |
|---|---|---|---|
| Down payment | $0 | 3.5% | 3–20% |
| Monthly mortgage insurance | None | 0.55% annual (life of loan) | PMI until 80% LTV |
| Upfront fee | Funding fee (2.15% first use) | UFMIP (1.75%) | None |
| Credit score (practical) | 580–620+ (lender dependent) | 580–620+ | 620–680+ for best pricing |
| Loan limit (full eligibility) | No VA limit | $557,750 (Maricopa Co.) | $832,750 conforming |
| Property types | 1-4 units, primary only | 1-4 units, primary only | 1-4 units, primary + investment + second home |
| Assumable | Yes | Yes | No |
| Unique qualification | Residual income test | Standard DTI ratios | Standard DTI ratios |
My general guidance: If you're VA-eligible and buying a primary residence, VA is the default starting point. The combination of zero down and no monthly MI is hard to beat. The main exceptions: if you're putting 20%+ down (conventional eliminates all MI costs), if you're buying a second home or investment property (VA requires occupancy), or if you're on a subsequent use and the 3.3% funding fee starts to erode the savings. I model all of these scenarios before we lock anything in. That's the broker advantage.
The VA House-Hack: Buy a Multi-Unit With Zero Down
This is one of my favorite conversations to have with veteran borrowers, because most don't realize they can do this. VA financing allows you to purchase a 2, 3, or 4 unit property with $0 down, as long as you occupy one of the units as your primary residence for at least twelve months.
The math on this strategy is compelling. The rental income from the non-owner-occupied units can help you qualify for the loan (lenders typically use 75% of the market rent). And in many markets, that rental income covers a significant portion — or all — of your mortgage payment.
Real Scenario: VA Triplex in the Phoenix Metro
I helped a veteran purchase a triplex in the east Valley for $475,000 using his VA benefit with $0 down. His total monthly payment (principal, interest, taxes, insurance) came to roughly $3,100. The two non-owner-occupied units rent for $1,350 and $1,400 per month — that's $2,750 in rental income covering most of his housing cost. His effective out-of-pocket housing expense is around $350 per month for a property he owns outright (well, the bank does for now). That's less than his previous apartment rent.
Not every market has multi-unit properties at price points that make this math work, but in the Phoenix metro area, Queen Creek, and parts of Orange County, there are opportunities. If this strategy interests you, let's talk specifics — I know which markets and which lenders make this work best.
Why Veterans Should Use a Mortgage Broker for Their VA Loan
I'll be direct about this: not all lenders treat VA loans the same. Some banks love VA business and price it aggressively. Others do VA loans but layer on restrictive overlays because they don't have deep VA underwriting expertise. Here's what working with a broker gets you:
- Credit score flexibility: The VA has no minimum score. But Lender A wants 640. Lender B wants 620. Lender C will go to 580 with strong compensating factors. I know which is which, and I match you accordingly.
- Pricing competition: I submit your file to multiple VA lenders simultaneously. They compete for your business. That competition tends to produce better pricing than walking into a single bank and taking whatever they offer.
- Guidelines knowledge: VA loans have unique requirements — residual income, the funding fee, COE entitlement calculations, MPR appraisal standards. I know these guidelines cold. I don't have to call my underwriter or check a manual. I've been doing this for 23 years, and VA is one of the programs where that experience matters most.
- Speed and reliability: I pre-underwrite every VA file before submission. That means fewer conditions, fewer delays, and a more predictable close date. Sellers and their agents notice when a VA loan closes on time — it builds confidence in VA offers, which historically have had a reputation (unfairly) for being slow or complicated.
Read more about why the broker model consistently outperforms the bank model for mortgage borrowers.
VA Loan FAQs
Straight answers to the questions veterans ask me most often.
Yes. If you have full VA entitlement, there is no VA-imposed loan limit and no down payment required regardless of the purchase price — as long as you qualify based on income, credit, and the lender's guidelines. If you have partial entitlement (because you have an existing VA loan or had a prior default), your county's conforming loan limit determines your maximum zero-down amount. For 2026, the baseline is $832,750 and high-cost areas go up to $1,249,125. Anything above your available entitlement may require a down payment on the excess. I can review your COE and give you an exact number in about ten minutes.
The VA itself has no minimum credit score requirement — that surprises a lot of veterans. However, every lender sets their own overlay. Most lenders want a 620 or higher. Some of the lenders I work with will go to 580 with compensating factors like a strong residual income, low DTI, or significant reserves. As a broker, I match you to the lender whose credit overlay fits your profile rather than forcing you into one lender's requirements. If your score is below 580, we should still talk — manual underwriting may be an option.
The VA funding fee is a one-time charge that funds the VA loan program. For a first-time purchase with zero down, it's 2.15% of the loan amount. Subsequent use is 3.3% with zero down. Putting 5% or more down reduces the fee significantly. The fee can be financed into the loan so you don't pay it at closing. Veterans with a service-connected disability rating of 10% or higher, Purple Heart recipients, and surviving spouses of veterans who died in service are fully exempt. About one-third of VA borrowers qualify for the exemption.
Yes, and this is a benefit that too many veterans don't take advantage of. Your VA loan benefit is reusable. You can have your entitlement restored after paying off a prior VA loan and selling the property. You can also use remaining entitlement to have two VA loans at the same time in certain situations — the most common is a PCS move where you keep your previous home and purchase a new primary residence. The funding fee is higher on subsequent use with zero down (3.3% vs. 2.15%), but the benefit itself does not expire.
Absolutely, and honestly I wish more veterans knew about this strategy. VA financing allows 1 to 4 unit properties as long as you occupy one of the units as your primary residence for at least twelve months. You can use the rental income from the other units to help you qualify for the loan. I've helped veterans buy fourplexes with zero down and generate positive cash flow from day one. If this interests you, let's talk specifics — the right property and the right lender make all the difference.
Not when handled properly. A well-prepared VA loan closes in 30 to 45 days, the same timeline as conventional. The VA appraisal and Minimum Property Requirements can occasionally add a few days if there are health and safety repairs needed, but I account for that upfront by evaluating properties early. I pre-underwrite every VA file before submission to the lender, which means fewer surprises and faster conditional approvals. The biggest delays I see on VA loans come from loan officers who don't understand VA guidelines — not from the program itself.
Full entitlement means you've never used your VA benefit, or you've used it but fully paid off the loan, sold the property, and had your entitlement restored. With full entitlement, there is no VA-imposed loan limit — you can borrow any amount with zero down if you qualify. Partial entitlement means some of your entitlement is tied up in an existing VA loan or was lost to a prior default. With partial entitlement, county conforming loan limits apply — the 2026 baseline is $832,750. You can still purchase above that limit, but you may need a down payment for the amount exceeding your available entitlement. This is exactly the kind of calculation I do every day — send me your COE and I'll give you the exact answer for your situation.
You Served Your Country. Let Me Serve You.
I'll pull your COE, run your numbers on VA and any other program you might qualify for, and give you a straight answer about which option saves you the most money. No sales pitch, no pressure.