This is widely considered the best mortgage program available in the United States, but you have to earn it.
VA (Department of Veterans Affairs) loans are designed exclusively for Veterans, Active-Duty Service Members, and eligible Surviving Spouses. Because the government guarantees a portion of the loan, we can offer terms that conventional lenders simply cannot match.
If you are eligible, this should almost always be your first choice.
How the VA Loan Works
The VA doesn't lend the money directly; they guarantee it. This protection allows us to approve loans with $0 down payment and no mortgage insurance, even if you have less-than-perfect credit.
- Zero Down Payment: Buy a home with $0 out of pocket for the down payment.
- No Mortgage Insurance (PMI): Unlike FHA or Conventional loans, you never pay monthly mortgage insurance, saving you hundreds per month.
- Lower Interest Rates: VA rates are typically 0.25% – 0.50% lower than conventional rates.
Note: There is a one-time "Funding Fee" (1.5% – 2.15% for first-time use) which helps sustain the program, but this can be rolled into the loan amount. Veterans with a service-connected disability are EXEMPT from this fee.
VA vs. Conventional & FHA
| Feature | VA Loan | Conventional Loan | FHA Loan |
|---|---|---|---|
| Down Payment | $0 (0%) | 3% – 20% | 3.5% |
| Monthly PMI | $0 (Never) | $100 - $300+ | $100 - $300+ |
| Credit Score | Flexible (580+) | Strict (620+) | Flexible (580+) |
| Interest Rates | Lowest | Standard | Standard |
Is This Program Right for You?
If you have a Certificate of Eligibility (COE), the answer is almost always YES.
- Veterans: You served 90 consecutive days during wartime or 181 days during peacetime.
- Active Duty: You have served 90 consecutive days.
- National Guard/Reserves: You have served 6 years (or 90 days of active duty service).
- Surviving Spouses: You are the unremarried spouse of a veteran who died in service or from a service-connected disability.
Program Guidelines & Requirements
- Property Type: Primary Residence Only. (Single family, condo, townhome, or 1-4 unit multifamily if you live in one unit).
- Credit Score: Generally 580–620+. (We have flexibility here because of the government guarantee).
- Income: We look at "Residual Income" (what you have left over after bills) rather than just a strict Debt-to-Income ratio.
- Funding Fee: Waived entirely if you receive VA disability compensation.
The Application Process
- Get Your COE: We can pull your Certificate of Eligibility for you automatically in minutes.
- Pre-Approval: We review your service history, income, and credit to establish your budget.
- Home Search: You find a home. (Note: The home must pass a VA appraisal to ensure it is "safe, sound, and sanitary").
- Closing: You sign the papers and get your keys. $0 down means you often only bring money for closing costs (and sellers can pay those for you!).
To learn more, read our complete guide to VA Home Loans →
