VA loans
Zero down payment, no monthly mortgage insurance, and competitive rates. If you are eligible, it is almost always the strongest loan available to you.
What a VA loan is
A VA loan is a mortgage made by an ordinary lender and partially guaranteed by the U.S. Department of Veterans Affairs. The VA does not lend the money; the guarantee is what allows lenders to offer terms nobody else can match — no down payment and no monthly mortgage insurance.
It is a benefit earned through service, it does not expire, and it can be used more than once. A surprising number of eligible buyers never use it, usually because of misconceptions about the process rather than anything real.
Who is eligible
Broadly, eligibility covers:
- Veterans meeting the service requirements for their era
- Active duty service members after a qualifying period of continuous service
- National Guard and Reserve members meeting the service criteria
- Certain surviving spouses of service members who died in service or from a service-connected disability
The exact service length required depends on when and how you served, so the definitive answer comes from your Certificate of Eligibility (COE). You can request it yourself through the VA, and most lenders can pull it for you in minutes.
Get the COE early
It costs nothing and takes very little time. Having it in hand when you write an offer removes any question about whether your financing is real.
The benefits
- No down payment on most purchases up to the amount your entitlement supports
- No monthly mortgage insurance — this is the big one. On a conventional loan at 5% down, PMI can add a meaningful sum every month for years. VA has none, ever.
- Competitive interest rates, often at or below conventional
- No prepayment penalty
- Limits on what you can be charged — the VA restricts certain closing costs a veteran may pay, and some fees must be covered by the seller or lender
- More forgiving credit standards than conventional, and a genuinely holistic underwriting approach through the residual income test
- Assumable — a future buyer may be able to take over your loan at your rate, which becomes a real selling advantage if rates rise
- Foreclosure avoidance assistance from the VA if you ever struggle
The funding fee
In place of mortgage insurance, the VA charges a one-time funding fee, calculated as a percentage of the loan amount. It varies by whether it is your first use of the benefit, how much you put down (a down payment reduces it), and your service category. It is normally financed into the loan rather than paid in cash.
The exemption people miss
Veterans receiving VA compensation for a service-connected disability are generally exempt from the funding fee entirely, as are certain surviving spouses. If you have a disability rating, make sure your lender knows before they price the loan — and if a rating is granted after you close, you may be entitled to a refund of a fee you already paid.
Current fee percentages are set by the VA and revised periodically. Get the exact figure for your situation from your lender.
Entitlement
Entitlement is the amount the VA guarantees on your behalf. It is what determines how much you can borrow with no money down.
If you have full entitlement — you have never used the benefit, or you used it and have since paid the loan off and sold the property — there is no VA-imposed cap on how much you can borrow with zero down. Your limit becomes whatever the lender will approve based on your income and credit.
If you have partial entitlement — you currently have a VA loan outstanding, or you had one that ended in a short sale or foreclosure — county loan limits come back into play for the remaining entitlement, and you may need a down payment above a certain amount.
Restoration lets you get entitlement back once a previous VA loan is paid off, and there is a one-time restoration option that lets you keep a home purchased with a VA loan and still restore entitlement for another purchase. The rules here reward asking a lender who handles VA loans regularly.
Property requirements
VA appraisals establish value and also confirm the property meets the VA's Minimum Property Requirements — that it is safe, structurally sound and sanitary. Appraisers flag things like active roof leaks, exposed wiring, non-working mechanical systems, inadequate access and, on pre-1978 homes, defective paint surfaces.
Anything flagged normally has to be corrected before closing. In practice that means the seller must agree to fix it, which makes VA offers harder on properties in poor condition. The VA renovation loan exists for that case, though relatively few lenders offer it.
Occupancy: VA loans are for primary residences. You are generally expected to occupy the home within about sixty days of closing, with exceptions for active duty circumstances. You can buy a 2–4 unit property if you live in one of the units.
Condos
As with FHA, the VA requires the condominium project to be approved, not just the unit. Many South Florida buildings are not on the VA approved list, and given how much of the local inventory is condominium, that is a real constraint on your search.
The VA maintains a searchable list of approved condominium projects. Check it before you view. It is possible for a building to seek approval, but it takes time and cooperation from the association, which is rarely practical inside a purchase timeline.
Making a VA offer win
The unfortunate reality is that some listing agents still steer sellers away from VA offers, based on outdated ideas about slow closings and difficult appraisals. VA loans close on comparable timelines to conventional ones. What helps:
- Use a lender who does VA loans routinely — and say so in the offer
- Have your COE in hand, and a fully underwritten pre-approval rather than a basic pre-qual
- Target homes in good condition, where MPR issues are unlikely
- Compete on terms: closing date, deposit size, a shorter inspection window
- Have your agent speak directly to the listing agent to address VA concerns head-on rather than letting them go unexamined
You still have negotiating room
Zero down does not mean no cash. Many VA buyers have savings and can offer a larger escrow deposit, a faster close, or a partial appraisal gap — all of which strengthen an offer without a down payment.
Using it more than once
The benefit does not expire and is not once-only. Once a previous VA loan is paid off and the property sold, entitlement is restored in full and you can use it again.
You can also, in some circumstances, hold two VA loans at once — for example on a permanent change of station where you keep the first home. That draws on your remaining entitlement rather than full entitlement, so there may be a down payment involved. It is a case worth planning carefully with a lender who specialises in VA.
Myths worth killing
| Myth | Reality |
|---|---|
| "VA loans take forever to close." | They close on similar timelines to conventional loans with a competent lender. |
| "You can only use it once." | It is reusable, and entitlement is restorable. |
| "You have to be a first-time buyer." | No such requirement. |
| "VA appraisals come in low." | They follow the same valuation standards as any appraisal. What differs is the added property condition check. |
| "The VA lends the money." | An ordinary lender does. The VA guarantees part of it. |
| "There is no cost at all." | There is a funding fee unless you are exempt, and normal closing costs still apply. |
| "You cannot buy a multi-unit property." | You can — 2–4 units, if you occupy one. |
Thank you for your service
If you are eligible for a VA loan, it is worth at least comparing properly against conventional before you rule it out. Bring your COE — or get help requesting it — and you will get a straight side-by-side of the real monthly cost either way.
General information only, not a loan commitment, a quote, or financial advice, and not endorsed by or affiliated with the U.S. Department of Veterans Affairs or any government agency. VA rules, funding fee percentages and county loan limits change — confirm current terms with a VA-approved lender and with the VA directly.