This Veterans Day, we’re honoring the men and women who have served our country. One of the most meaningful ways to say thank you is to make sure veterans and their families know about a benefit they’ve earned: the VA home loan.
Backed by the U.S. Department of Veterans Affairs, VA loans have helped millions of service members and veterans become homeowners. Yet many eligible buyers still don’t use them, often because of outdated myths. Here’s what you need to know.
Who Is Eligible?
VA loans are available to many:
- Veterans who meet minimum service requirements
- Active-duty service members
- National Guard and Reserve members who meet service requirements
- Certain surviving spouses of service members
To get started, you’ll need a Certificate of Eligibility (COE). Many lenders can request it for you, or you can apply through VA.gov.
The Big Benefits
No down payment required. Eligible borrowers with full entitlement can often buy a home with zero down. That can make homeownership possible years sooner than saving for a traditional down payment.
No private mortgage insurance (PMI). Most conventional loans with less than 20% down require monthly PMI. VA loans don’t, which can save hundreds of dollars a month.
No loan limit with full entitlement. If you have full entitlement, the VA doesn’t cap how much you can borrow. Your lender will still decide what you qualify for based on income, credit, and the home’s appraised value.
Limited closing costs. The VA limits certain fees lenders can charge, and sellers are allowed to contribute toward a buyer’s closing costs.
What About the Funding Fee?
Most VA loans include a one-time funding fee that helps keep the program running. The amount depends on your down payment and whether you’ve used the benefit before. It can usually be rolled into the loan, so you don’t need to pay it upfront.
Many veterans don’t pay it at all. Veterans who receive VA compensation for a service-connected disability are generally exempt, along with some other groups. Check VA.gov or ask your lender to confirm your status.
Common VA Loan Myths
Myth: You can only use a VA loan once. You can use the benefit more than once. In many cases, entitlement can be restored after you sell and pay off a previous VA loan.
Myth: Sellers don’t like VA offers. A well-prepared VA buyer with a strong pre-approval can be just as competitive as anyone else. A knowledgeable agent can help present your offer with confidence.
Myth: VA appraisals and inspections are impossible. The VA appraisal checks that the home meets basic safety and livability standards. It’s there to protect you, and most homes in good condition pass without issues.
Myth: VA loans are only for first-time buyers. VA loans work for first-time buyers and repeat buyers alike. They can also be used to refinance.
Myth: The process takes forever. Timelines for VA loans are often similar to other loan types when you work with experienced lenders.
Tips for a Smooth VA Home Purchase
- Request your Certificate of Eligibility early.
- Get pre-approved with a lender experienced in VA loans.
- Work with an agent who understands the VA process and can guide negotiations.
- Ask about funding fee exemptions and seller-paid closing costs.
- Budget for the full monthly payment, including taxes and insurance.
Thank You for Your Service
To every veteran, service member, and military family: thank you. You’ve earned this benefit, and you deserve a team that will help you use it well.
VA loan rules, fees, and eligibility requirements can change, and local requirements and costs vary. Confirm current details at VA.gov and with a VA-approved lender, and check your local rules before making decisions.
