US Eligibility-Based Program:
To qualify, borrowers must meet VA service requirements, which generally include:
Active-duty service members
Veterans
Certain National Guard or Reserve members
Eligible surviving spouses
Eligibility is verified with a Certificate of Eligibility (COE).
No Down Payment
In most cases, no down payment is required, making homeownership more accessible.
No Private Mortgage Insurance (PMI)
Unlike FHA or conventional loans with low down payments, VA loans do not require monthly mortgage insurance.
Competitive Interest Rates
Because the VA backs the loan, lenders typically offer lower-than-average rates.
Flexible Qualification Standards
More lenient credit and debt-to-income (DTI) requirements
Can be easier to qualify for than conventional loans
Limits on Closing Costs
The VA restricts certain fees lenders can charge and allows sellers to cover some costs.
Assumable Loan
A VA loan can be assumed by another qualified borrower, potentially passing on a lower interest rate.
Most VA borrowers pay a VA funding fee, which helps keep the program sustainable.
The fee varies based on service type, down payment, and loan usage (first-time or subsequent).
Can be financed into the loan.
Some borrowers are exempt, such as those with service-connected disabilities.
Must be used for a primary residence (no investment properties, though multi-unit homes are allowed if one unit is owner-occupied).
The home must meet VA minimum property requirements to ensure safety and soundness.
No down payment
No PMI
Lower interest rates
Easier qualification
Limits on closing costs
Assumable loan option
Funding fee adds cost (unless exempt)
Primary residence only
Property condition requirements may limit options
Some sellers misunderstand VA loans, which can complicate negotiations
Whether you’re buying your first home or upgrading to your next chapter, I’m here to guide you every step of the way.
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