VA Loan Benefits Explained

What is a VA Loan?

A VA loan is a mortgage option available to veterans, active duty service members, and some surviving spouses. It's backed by the Department of Veterans Affairs, allowing lenders to offer favorable terms.

Key Benefits

No Down Payment Required

Unlike conventional loans that typically require 3-20% down, VA loans allow you to finance 100% of the home's value.

No Private Mortgage Insurance (PMI)

Conventional loans with less than 20% down require PMI. VA loans don't, saving you hundreds per month.

Competitive Interest Rates

Because the VA guarantees a portion of the loan, lenders can offer lower rates than conventional mortgages.

Limited Closing Costs

The VA limits what fees lenders can charge, potentially saving you money at closing.

No Prepayment Penalty

You can pay off your loan early without any penalty.

Eligibility Requirements

You may be eligible if you:

• Served 90 consecutive days during wartime
• Served 181 days during peacetime
• Served 6 years in the National Guard or Reserves
• Are the spouse of a service member who died in the line of duty or from a service-connected disability

The VA Funding Fee

VA loans include a funding fee that helps fund the program. The fee varies based on:

• Down payment amount
• First-time vs. subsequent use
• Type of service

Some veterans are exempt from the funding fee, including those with service-connected disabilities.

VA Appraisal Requirements

VA appraisers look at property condition more closely than conventional appraisers. The home must meet Minimum Property Requirements (MPRs) covering:

• Safe drinking water
• Adequate heating
• No lead paint hazards
• Proper roof condition
• No safety hazards

Using Your VA Benefit

Certificate of Eligibility (COE)

You'll need a COE to use your VA loan benefit. Your lender can often obtain this electronically.

Can I Use It More Than Once?

Yes. You can use your VA benefit multiple times, though entitlement limits may apply.

Can I Have Two VA Loans?

In some cases, yes. If you have remaining entitlement and meet certain requirements.

Questions About VA Loans?

I have extensive experience with VA transactions and can help you understand your options. Reach out to discuss your situation.