VA Home Loan Benefits

• Eligibility basics: 90+ continuous days of active service during wartime, 181+ days during peacetime, 6+ years in the National Guard or Reserves, or surviving spouse of a service member who died in the line of duty or from a service-connected disability.
• Pull your COE at va.gov/housing-assistance/home-loans/how-to-request-coe — most are issued instantly. A lender can pull it for you, but having it yourself prevents delays.
• Check your remaining entitlement. Basic entitlement is $36,000, and you have bonus entitlement that scales to county loan limits. If you've used the benefit before, the COE shows what's left.
• If you were discharged under conditions other than honorable, you may still qualify after a VA character-of-discharge review. Apply — don't assume you're disqualified.
• Surviving spouses use VA Form 26-1817 to establish eligibility and are exempt from the funding fee.

• Zero down payment up to the conforming loan limit (and beyond, with sufficient entitlement and lender approval). FHA requires 3.5% down; conventional requires 3-20%.
• No private mortgage insurance (PMI), ever. On a $350,000 home with 5% down conventional, PMI alone costs $150-250/month — a VA-financed buyer keeps that money.
• VA funding fee replaces PMI: a one-time fee of 1.25-3.3% of the loan amount, rolled into the loan. First-time use with 0% down is 2.15% (regular military) or 1.25% if you put 10%+ down. Veterans with a service-connected disability rating of 10%+ are EXEMPT from the funding fee entirely.
• Lower interest rates: VA loans typically run 0.25-0.5% below conventional rates because the VA guaranty reduces lender risk.
• More forgiving credit standards: most VA lenders will work with 580-620 credit scores; some go to 540 with compensating factors. Debt-to-income up to 50% is common.

Run the actual numbers against a conventional or FHA quote for the same house. The VA loan wins in almost every realistic scenario for a first-time veteran buyer.

• Get loan estimates (the standardized 3-page disclosure required by federal law) from at least three lenders: one credit union (NFCU, USAA, PenFed), one large VA-focused lender, and one local broker. Compare the APR and the 'Origination Charges' line — not just the headline rate.
• Get pre-approved (not pre-qualified) before you shop. Pre-approval includes a hard credit pull and document review and gives you a real number you can put on offers.
• Watch for junk fees: 'lender admin fee,' 'underwriting fee,' 'processing fee.' VA caps the buyer's allowable closing costs and prohibits certain fees entirely — your lender or agent should walk you through which costs the seller can pay.
• Negotiate seller concessions. Sellers can pay up to 4% of the loan amount toward your closing costs, prepaids, and even the funding fee — ask for this in your offer.
• Avoid lenders that pressure you to lock immediately or skip the appraisal contingency. The VA appraisal is part of your protection.

• MPRs require working heat, safe roof, no exposed wiring, functional plumbing, no active leaks, and (in most areas) no chipped lead-based paint on pre-1978 homes. If the home fails, the seller must repair before closing, you can renegotiate, or you can walk away.
• If the appraisal comes in below the contract price, you have three options: ask the seller to lower the price, bring the difference in cash, or terminate the contract under the VA Amendatory Clause without losing your earnest money.
• Always pay $400-600 for an independent home inspection separately from the VA appraisal. The appraiser is checking minimum standards; the inspector is checking everything — HVAC age, electrical panel, foundation, pests, roof life.
• If the home is in a flood zone, flood insurance is required and adds $40-200+/month. Factor it into your true housing cost before signing.
• Tidewater process: if the appraiser will likely come in low, they notify the lender first so you can submit comparable sales as evidence. Stay engaged with your agent if this happens.

• When you sell the home and the loan is paid off, your full entitlement is restored. You can use the VA loan again on the next purchase with zero down.
• VA IRRRL (Interest Rate Reduction Refinance Loan): if rates drop 0.5%+ below your current rate, you can refinance with no appraisal, no income verification, no funding fee for service-connected disabled veterans, and minimal paperwork.
• Cash-out VA refinance lets you tap up to 100% of the home's value — useful for paying off high-interest debt or funding home improvements, but never to fund consumer spending.
• Keep a primary residence on a VA loan for 12 months, then PCS or job-transfer can let you convert it to a rental while using your remaining entitlement to buy the next house. This is how many veterans build a 2-3 property portfolio over a decade.
• If you're disability-rated 10%+ AFTER closing, file a refund request for the funding fee with the VA — many veterans have collected $5,000-15,000 refunds by doing this.

Used deliberately, the VA home loan can be the foundation of a six-figure equity position within 7-10 years of your first purchase.