Buying a home is one of life’s biggest decisions. For U.S. military veterans, active-duty service members, and eligible surviving spouses, the VA home loan benefit can make this dream more attainable. With no down payment, no PMI, and flexible qualification standards, VA loans are a powerful resource.
In this guide, we’ll cover everything you need to know about VA loans — plus expert homebuying tips tailored specifically for veterans.
What Is a VA Loan?
A VA loan is a government-backed mortgage that helps eligible military members purchase, build, or refinance a home. These loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs.
Key Benefits of a VA Loan:
- $0 Down Payment (in most cases)
- No Private Mortgage Insurance (PMI)
- Competitive Interest Rates
- Flexible Credit Requirements
- Limited Closing Costs
- No Prepayment Penalties
📌 According to the VA, more than 24 million VA loans have been guaranteed since the program began in 1944.
Who Is Eligible for a VA Loan?
You may qualify if you meet at least one of the following criteria:
- 90 consecutive days of active duty during wartime
- 181 days of active service during peacetime
- 6 years in the National Guard or Reserves
- Spouse of a service member who died in the line of duty or due to a service-related injury
You’ll need to obtain a Certificate of Eligibility (COE) from the VA before you apply. Learn more about VA loan eligibility
Step-by-Step Guide: How to Use a VA Loan
- Get Pre-Approved – Start with a VA-approved lender who understands the loan process and can help determine your budget.
- Obtain Your COE – Your lender can typically request this for you through the VA’s online portal.
- Find a VA-Experienced Real Estate Agent – Agents familiar with VA loans know how to avoid homes that might not meet VA appraisal requirements.
- Search and Make an Offer – Find a home that fits your needs and budget, then submit your offer — remember, VA loans often allow zero down.
- VA Appraisal and Home Inspection – The VA requires a property appraisal to ensure the home meets Minimum Property Requirements (MPRs). An independent home inspection is also recommended.
- Close the Loan – Once approved, you’ll sign final documents and receive the keys to your new home.
Homebuying Tips for Veterans
Understand the VA Funding Fee
This one-time fee helps fund the VA loan program. It can range from 1.25% to 3.3% of the loan amount. Veterans with a service-connected disability rating are exempt from the funding fee.
Watch for VA Appraisal Requirements
The home must be:
- Structurally sound
- Safe and sanitary
- Free of hazards (e.g., lead paint, termites)
Budget for Closing Costs
Although you’ll avoid PMI and down payments, you’re still responsible for:
- Title insurance
- Loan origination fees
- Taxes and recording fees
You may negotiate to have sellers pay up to 4% of the purchase price toward your costs.
Know That You Can Use It More Than Once
VA loan benefits can be reused, and entitlement restoration is available after previous VA loan payoffs.
Explore Other State & Local Benefits
Some states offer:
- Property tax exemptions
- Mortgage credit certificates
- Down payment assistance programs
Thinking About Retirement? Consider These Veteran-Friendly Factors:
If you’re preparing for post-military life, choose a location that offers:
- A low cost of living
- Access to VA healthcare facilities
- A strong veteran support network
- State tax benefits for military retirees
Final Thoughts
The VA loan benefit is a hard-earned reward for your service — one that can make the journey to homeownership smoother and more affordable. With the right guidance and preparation, you can secure a home that meets your needs and honors your service.
Whether you’re buying your first home, upsizing for a growing family, or finding the perfect place to retire, a VA loan could be your best asset.
👋 Ready to take the next step?
Partner with a VA-experienced real estate agent and lender to start your home search with confidence. If you need help finding a veteran-friendly community or navigating your VA loan benefits, we’re here to serve you — just as you’ve served our nation.