VA Loan

VA loans are one of the best mortgage benefits available—no down payment required, no mortgage insurance, and competitive rates. If you're eligible, this is often the best mortgage option available.

Eligibility: ✅ Active duty military (90+ days wartime, 181+ days peacetime) ✅ Veterans (meet service requirements) ✅ National Guard/Reserves (6+ years service) ✅ Surviving spouses of service members who died in service or from service-related disability

Key Benefits: ✅ $0 down payment (can finance 100% of home) ✅ No PMI ever (saves $100-300/month vs conventional) ✅ Lower rates (typically 0.25-0.50% below conventional) ✅ Flexible credit (no minimum credit score set by VA) ✅ Seller can pay closing costs (up to 4% of loan) ✅ Assumable (buyer can take over your low rate) ✅ Limited closing costs (VA caps what lenders can charge)

**The Only Major Cost

• VA Funding Fee:** One-time fee that can be rolled into loan:

Exempt from funding fee:

• Veterans receiving VA disability compensation
• Surviving spouses of service members who died in service

Example: $350,000 home, $0 down, first-time VA loan use

• Loan amount: $350,000
• Funding fee: $350,000 × 2.15% = $7,525
• Total loan: $357,525
• No PMI ever (saves ~$175/month)
• Over 30 years, avoiding PMI saves ~$63,000

VA Loan Limits (2025): No limit in most counties for borrowers with full entitlement. For those with partial entitlement or in high-cost areas, limits vary by county.

VA Loan Occupancy Requirements:

• Must be your primary residence
• Must move in within 60 days
• Must occupy for at least 1 year
• Can rent out later or buy another with VA loan

Can You Use VA Loan More Than Once? ✅ YES! Your entitlement is reusable:

• Sell home and pay off VA loan = full entitlement restored
• Can have multiple VA loans simultaneously if you have remaining entitlement

Common Uses:

1. Home Purchase: Most common use
2. Refinance (IRRRL): Interest Rate Reduction Refinance Loan (VA to VA refinance)
3. Cash-Out Refinance: Convert conventional/FHA to VA and pull equity
4. Construction/Renovation: Build or renovate a home

VA Loan vs Conventional vs FHA:

When VA Loan Is Best:

• You're eligible (use this benefit!)
• Limited down payment savings
• Want to avoid monthly PMI
• Plan to stay in home 5+ years

Potential Drawbacks:

• 2.15% funding fee (but no PMI makes up for it quickly)
• Property must meet VA appraisal standards (stricter than conventional)
• Seller may prefer conventional offer (misconception that VA loans are harder)

The Bottom Line: If you're eligible for a VA loan, it's almost always your best option. The combination of $0 down and no PMI is unbeatable.