A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. The VA doesn’t lend the money directly. Instead, it guarantees a portion of each loan, which reduces the risk for the lenders who actually fund it. That guarantee is what makes VA loans able to offer terms most other loan types can’t match, including zero down payment, no private mortgage insurance, and often lower interest rates than conventional financing.
This is where VA loans separate themselves from every other loan type on this site. Most loans require some form of mortgage insurance if you’re not putting 20% down. VA loans skip that entirely, regardless of your down payment amount.
On a $450,000 home, that difference is significant. A conventional buyer putting 5% down would pay PMI until they reach 20% equity. A VA buyer with the same down payment, or no down payment at all, pays none. Over several years, that alone can save thousands of dollars.
VA loans do have one cost most other loans don’t: the funding fee. This is a one-time percentage of the loan amount, paid either at closing or rolled into the loan balance, and it helps keep the VA loan program funded for future borrowers without cost to taxpayers.
The fee amount depends on your down payment and whether it’s your first time using your VA loan benefit. Veterans receiving VA disability compensation are exempt from this fee entirely. Chris will confirm your exact status and calculate the fee that applies to you before you get too far into the process.
VA loans are intended for primary residences, not investment properties or vacation homes. The property also has to meet VA Minimum Property Requirements, a set of safety and livability standards confirmed through a VA appraisal. Most standard homes clear this without issue, but it’s worth flagging early if you’re considering a property that needs significant work.
Yes. VA loan eligibility isn’t a one-time benefit. Many veterans use it multiple times over their lives, whether they’re moving, upgrading, or relocating for work. If you’ve used your VA loan before and it’s paid off, or the home was sold, your entitlement is typically restored. If you still own the home, you may still have remaining entitlement to buy again. This is worth a direct conversation with Chris, since remaining entitlement calculations can get specific to your situation.
He’ll walk you through your Certificate of Eligibility, calculate your funding fee status, and make sure you understand exactly what a $0-down VA loan looks like on your specific numbers before you make an offer.
