Built to honor service with powerful benefits. This guide breaks down how VA loans really work: zero-down possibilities, the VA funding fee, credit guidelines, and when a VA loan can be your strongest option.
VA loans are a benefit earned through military service. They’re designed to make homeownership more accessible and sustainable for eligible Veterans, active-duty service members, certain Reservists and National Guard members, and some surviving spouses.
They may be a strong fit if you:
VA can be less ideal if you’re buying an investment or vacation home, or if you don’t meet eligibility requirements. In those cases, we’ll usually model Conventional or other options side-by-side.
Down payment on VA loans
VA funding fee (one-time cost)
Closing costs & seller credits
The right move isn’t just “always roll the fee into the loan” or “always pay it in cash.” We’ll look at your timeline, payment comfort, and liquidity before deciding.
VA guidelines are often more forgiving than Conventional, especially with past credit bumps. Lenders typically have minimum score expectations, but the big picture matters: payment history, recent behavior, and overall stability. Cleaning up small issues can still improve your terms.
VA looks at your debt-to-income ratio (DTI) and something unique called residual income—how much is left over each month after debts and housing. The goal is to make sure you have enough margin for real life, not just the payment on paper.
You don’t need to memorize any of this. The goal is to understand the directional impact: steady income, reasonable debts, and a stable credit pattern generally open up better VA options.
VA loans are designed for primary residences and can be used on a variety of property types:
VA also has expectations around occupancy—typically that you intend to move into the home within a reasonable time frame and live there as your primary residence. We’ll walk through what that means for your specific situation (PCS orders, family plans, etc.).
VA loans can be hard to beat for eligible borrowers, especially when you want to protect cash and lower your payment:
Conventional or FHA may make more sense if you’re buying a second home or investment, or if you don’t have VA eligibility. Sometimes a buyer will use:
When we build your plan, we’ll usually show VA and at least one alternative side-by-side, so you’re not guessing which program is “best”—you’ll see it in the numbers.
Imagine an active-duty service member with steady base pay and BAH, modest debts, and VA eligibility. They’d like to keep savings intact for PCS moves, emergencies, and long-term goals—not pour everything into a down payment.
In a case like this, we might compare:
Sometimes VA clearly wins on total payment and cash to close. Other times, a buyer may choose to bring some money down to improve long-term cost. The key is seeing how it plays out over a 5–7 year timeline, not just month one.
You don’t need a perfect file to start. But these items help us move quickly and give you clear, VA-specific numbers:
Want to pressure-test the payment before we talk? You can use my mortgage payment calculator to rough in estimated payments at different price points, taxes, insurance levels, and rate scenarios. It’s for estimates only — we’ll still build your final VA plan using live pricing, funding fee details, and your full approval file.
The goal isn’t just “get approved.” It’s to use your VA benefit wisely and align the loan with your life, your family, and your future plans.
As you compare VA options (and VA vs. other programs), these questions help cut through the noise:
If you can answer those clearly, you’re ahead of most buyers and making decisions with your eyes open.