The funding fee
A one-time fee that varies with your service category, your down payment, and whether this is a first or subsequent use. It is commonly rolled into the loan, and waived for eligible disabled veterans.
The strongest loan most people never use.
If you are eligible for a VA loan, it is very often the best financing available to you — typically no down payment, no monthly mortgage insurance, and competitive pricing. The benefit is earned, and it is significantly under-used.
Who is eligible.
VA financing is available to eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses. Eligibility is established through a Certificate of Eligibility, which we can help you request.
The benefit is not one-time. Entitlement can be restored and reused after a previous VA loan is paid off, and in some circumstances more than one VA loan can be held at once. If you used a VA loan years ago and assumed that was the end of it, it is worth asking.
- Eligible veterans and active-duty service members
- Qualifying National Guard and Reserve members
- Certain surviving spouses
- Purchase and refinance, including rate reduction refinances
- Owner-occupied one-to-four unit property
No monthly mortgage insurance
This is the part that most changes the monthly number. FHA and low-down-payment conventional loans both carry ongoing mortgage insurance; VA does not. Instead there is a one-time funding fee, which can usually be financed — and which is waived entirely for veterans receiving compensation for a service-connected disability.
What to know going in.
The program is generous, but there are specifics worth understanding before you write an offer.
Property requirements
VA sets minimum property requirements and the appraisal checks against them. Homes needing significant repair can be a problem, much as with FHA.
Occupancy
VA loans are for property you will occupy. Multi-unit purchases are allowed if you live in one of the units, which makes a duplex or fourplex a strong first move.
VA against everything else.
If you are eligible, VA usually wins, and it is not close. No down payment and no monthly mortgage insurance is a combination neither FHA nor conventional can match. The cases where something else might be better are narrow — a very large down payment where the funding fee outweighs the mortgage-insurance saving, or a property type VA will not accept. We will still run the comparison, but you should know the benefit is genuinely strong and worth using.
What we will ask you for
What we will ask you for
- Certificate of Eligibility, or your DD-214 so we can help request it
- Recent pay stubs and, if applicable, your Leave and Earnings Statement
- Last 2 years of W-2s
- Last 2 months of statements for every bank account
- Photo ID for every borrower
- Award letter, if you receive disability compensation
Common questions.
Do I really need nothing down?
In most cases, yes — full entitlement generally means no down payment is required, which is the central advantage of the program. Reduced entitlement, for example if you have another VA loan outstanding, can change that. We will confirm your entitlement position early.
I used a VA loan before. Can I use it again?
Usually. Entitlement is typically restored once a prior VA loan is paid off, and in some situations you can hold more than one VA loan at a time. This is one of the most common reasons eligible borrowers wrongly assume they cannot use the benefit again.
What is the funding fee and can I avoid it?
It is a one-time fee that supports the program, varying by service category, down payment, and whether it is a first or subsequent use. It can generally be financed into the loan. Veterans receiving compensation for a service-connected disability are exempt from it entirely.
Can I buy a rental property with a VA loan?
Not as a pure rental — VA requires occupancy. You can, however, buy a two-to-four unit property, live in one unit, and rent the others. For non-owner-occupied investment, look at conventional or a DSCR loan.
Is a VA loan slower to close?
It should not be. The appraisal follows VA procedures and the property must meet minimum requirements, but a well-prepared VA file closes on a normal timeline. Delays usually come from the property, not the program.
Use the benefit you earned.
If you are not sure whether you are eligible or whether your entitlement is available, send us a message. That question takes very little time to answer.