VA Loans: Everything You Need to Know About VA Loans: A Guide for Military Service Members and Veterans

Jul 7

3 min read

For current and former military service members, VA Loans offer a powerful, government-backed pathway to homeownership with benefits that far surpass conventional mortgage options. Designed to honor those who have served, VA loans make buying a home more accessible, affordable, and achievable.

Here’s everything you need to know about VA Loans.

What is a VA Loan?

A VA Loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA), exclusively available to eligible veterans, active-duty service members, National Guard members, reservists, and in some cases, surviving spouses. VA loans are provided by private lenders, such as banks or credit unions, but the VA guarantees a portion of the loan, allowing lenders to offer more favorable terms.

Key Benefits of VA Loans

Zero Down Payment: No down payment required in most cases—one of the few programs offering 100% financing.
No Private Mortgage Insurance (PMI): Unlike FHA or conventional loans, VA loans do not require costly mortgage insurance.
Competitive Interest Rates: VA loans typically offer lower rates than conventional loans.
Lenient Credit Requirements: VA guidelines are more forgiving, allowing lower credit scores to qualify.
Limited Closing Costs: The VA limits the fees lenders can charge, saving borrowers money.
Reusable Benefit: The VA loan benefit can be used multiple times throughout your life.
No Prepayment Penalty: Borrowers can pay off their loan early without penalty.

VA Loan Eligibility

Eligible applicants generally include:

Active-duty service members (90 continuous days)
Veterans meeting minimum service requirements
National Guard and Reserve members
Surviving spouses of service members who died in the line of duty or as a result of service-connected injuries

A Certificate of Eligibility (COE) is required to apply.

VA Loan Requirements

Credit Score: While no official minimum, most lenders prefer 620+.
Income Verification: Must demonstrate stable, reliable income.
Residual Income: The VA uses residual income guidelines to ensure borrowers can cover basic living expenses after paying housing costs.
Debt-to-Income Ratio: Typically 41% maximum, but flexibility exists.
Primary Residence Only: Must be used for a home you intend to occupy.

Who is a VA Loan Best For?

Active-duty service members looking to buy their first home.
Veterans seeking to purchase or refinance a property.
Eligible reservists and National Guard members.
Surviving spouses who qualify under VA guidelines.

Property Types Eligible for VA Loans

Single-family homes
Condominiums (VA-approved projects)
Multi-unit properties (up to 4 units, with borrower occupying one unit)
Manufactured homes (with land)
New construction (with VA-registered builder)

VA Loan Funding Fee

Most VA loans require a funding fee that helps sustain the program for future veterans. This fee can be:

Financed into the loan amount.
Waived for veterans with service-connected disabilities.

Funding Fee Examples (2024):

First-time use with no down payment: 2.15%
Subsequent use: 3.3%
With 5%-10% down: Lower rates apply

VA Loan Considerations

Primary Residence Only: Cannot be used for vacation homes or investment properties.
Appraisal Standards: VA appraisals must meet "Minimum Property Requirements" to ensure safety, soundness, and sanitation.
Seller Perceptions: Some sellers may be unfamiliar with VA loans, so education may be necessary.
Entitlement Limits: While the VA has removed most loan limits, entitlement calculations may still apply in high-cost areas.

Steps to Getting a VA Loan

Obtain Your COE: Apply online through the VA or through your lender.
Choose a VA-Approved Lender: Not all lenders specialize in VA loans.
Get Pre-Qualified: Understand your buying power.
Find a Home: Work with a real estate agent familiar with VA transactions.
VA Appraisal & Underwriting: Ensure property meets VA guidelines.
Close & Move In: Enjoy homeownership with exclusive VA benefits.

Quick VA Loan Snapshot:

Feature	VA Loan Details
Down Payment	None required
Mortgage Insurance	Not required
Credit Score	Flexible (620+ preferred)
Eligible Borrowers	Veterans, military, certain spouses
Property Types	Primary residence only
Funding Fee	Applies unless exempt

Final Thoughts

A VA Loan is one of the most valuable benefits offered to those who have served our country, making homeownership more attainable without the barriers of large down payments or excessive costs. Whether you're active-duty, retired, or a surviving spouse, the VA loan program is designed to honor your service with accessible, affordable housing solutions.

If you are eligible and ready to explore purchasing or refinancing a home using your VA benefits in Atlanta or beyond, I would be honored to guide you every step of the way.

Contact Kereen Henry Luxury Associate Broker | Keller Williams 404-210-1674 | www.kereenhenry.com