VA loans
Earned benefits, handled by someone who has studied them.
VA financing is a mortgage from a private lender, partially guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, service members and certain surviving spouses. It is a distinctive program, and it is not always used as well as it could be.
How it works
The VA guarantees part of the loan; a lender makes it
The VA does not lend money. It guarantees a portion of a loan made by an approved lender, which is what allows VA guidelines to differ from other programs. Eligibility is determined by the VA and evidenced by a Certificate of Eligibility, which is based on service history rather than on anything a lender decides.
Entitlement — how much guaranty you have available — affects how a VA loan can be structured, particularly if you have used the benefit before or currently have a VA loan outstanding. That is worth establishing early, because it shapes the whole plan.
Tim holds the Certified Veterans Lending Specialist (CVLS) designation from the National Association of Mortgage Brokers.
Availability, eligibility and terms vary by borrower, property, lender and program, change over time, and are confirmed against current lender and agency guidelines. Nothing here is a commitment to lend.
What to understand
Five things worth knowing about VA financing
- Eligibility comes from the VA, not from us
- A Certificate of Eligibility establishes entitlement based on service. We can help you request it, but eligibility is the VA's determination and cannot be assumed in advance.
- Down payment works differently
- VA financing treats the down payment differently from conventional and FHA programs. What applies to you depends on your entitlement, the property, the amount financed and the lender's requirements — so it is worth confirming for your actual situation rather than relying on a general statement.
- There is a funding fee, with exemptions
- Most VA loans involve a VA funding fee, which can often be financed. Certain veterans — including some with service-connected disability compensation — are exempt. Whether an exemption applies to you is determined by the VA.
- Occupancy is required
- VA financing is for a home you will occupy. It is not intended for a second home or a rental property, though there are defined circumstances involving previous VA-financed homes worth discussing individually.
- The property must meet VA requirements
- VA appraisals consider minimum property requirements alongside value. Condition issues are better identified before an offer than during a contract.
Where it goes wrong
The avoidable problems we see most
- Entitlement not established early, so the structure has to change late.
- A previous VA loan still outstanding, which changes what is available on the next one.
- Property condition issues discovered after an offer rather than before.
- A funding-fee exemption not identified, or identified too late to be reflected cleanly.
- Assuming VA financing is automatically the best option without comparing it properly.
Common questions
VA questions people ask
Can I use my VA benefit more than once?
Frequently, yes. It depends on your remaining entitlement and whether a previous VA loan has been paid off or the entitlement restored. This is one of the first things worth checking.
Do I need a Certificate of Eligibility before we talk?
No. We can have a useful conversation first and help you request the certificate as part of the process.
Is a VA loan always the best choice for a veteran?
Not automatically. It is often excellent, and it is still worth comparing against conventional financing based on your entitlement, the property and current pricing. The point of comparing is to use the benefit well, not to talk you out of it.
Let us look at your entitlement properly
Fifteen minutes with someone who works on VA files regularly.