215,000+
LOANS CLOSED
VA Home Loan Benefits
VA home loan benefits give eligible borrowers access to mortgages with advantages that do not exist with conventional loans. There are several distinct elements of the VA loan that are designed to help Veterans and other eligible borrowers obtain home mortgages.
Unique Features of VA Mortgages
- No down payment potential
- Limits on allowed fees
- No PMI* (VA Funding Fee for program use unless exempt)
- Competitive interest rates
- Streamlined refinance program
Eligibility Requirements for a VA Home Loan
Lenders can offer no down payment for borrowers with ample entitlement. This unique advantage of the VA loan program can benefit borrowers who haven't had the opportunity to save much money. In fact, nearly 90% of VA loans have been made without a down payment since the program's inception in 1944. The no-down-payment feature alone can enable some eligible borrowers to purchase homes they might otherwise be unable to afford with other types of home mortgage programs. It may be helpful to prequalify so you get an idea of your budget before shopping for a home.
Another topic worth discussing is mortgage insurance. Most non-VA mortgages require costly PMI for borrowers who do not have at least 20 percent equity or more in their homes. Because a portion of VA loans are backed for the lender by the federal government, PMI is never allowed. A VA funding fee is required on most VA loans.
VA home loan eligibility can be earned in as few as 90 days through active-duty service (Title 10) in the Armed Forces, or in as few as 90 days (with a 30-day stint) for full-time duty (Title 32) in the National Guard. If not called to active duty, regular military members need to serve two continuous years, and Reservists and Guard members must serve six years. VA loan benefits are available to most Veterans who served prior to the early 1980s as long as they have 90 total days of active military duty during WWII, Korean War or Vietnam War, or 181 continuous days of active duty between these conflicts. This is just a summary of the eligibility guidelines. Find a more comprehensive overview on the Department of Veterans Affairs website.
Regardless of when you served, the VA has a rule regarding honorable discharge. To be eligible for VA home loans, a Veteran, if separated from the military, must have done so for reasons other than dishonorable discharge. Also, if your service was shortened due to an injury, illness, reduction in force or some other qualifying reason, the VA may still award home loan benefits in some cases even if you do not meet the minimum service duration requirements.
For more information about this topic and others, visit www.veteransfirst.com.
*A VA Funding Fee is required, unless exempt.
35+ Years
VA LOAN EXPERIENCE
VA Home Loan Benefits
Unique Features of VA Mortgages
Eligibility Requirements for a VA Home Loan
VA home loan benefits give eligible borrowers access to mortgages with advantages that do not exist with conventional loans. There are several distinct elements of the VA loan that are designed to help Veterans and other eligible borrowers obtain home mortgages.
- No down payment on most home purchases
- Certain closing costs limited by the VA
- No private mortgage insurance (PMI)
- No penalty for early loan repayment
Lenders can offer no down payment for borrowers with ample entitlement. This unique advantage of the VA loan program can benefit borrowers who haven't had the opportunity to save much money. In fact, nearly 90% of VA loans have been made without a down payment since the program's inception in 1944. The no-down-payment feature alone can enable some eligible borrowers to purchase homes they might otherwise be unable to afford with other types of home mortgage programs. It may be helpful to prequalify so you get an idea of your budget before shopping for a home.
Another topic worth discussing is mortgage insurance. Most non-VA mortgages require costly PMI for borrowers who do not have at least 20 percent equity or more in their homes. Because a portion of VA loans are backed for the lender by the federal government, PMI is never allowed. A VA funding fee is required on most VA loans.
VA home loan eligibility can be earned in as few as 90 days through active-duty service (Title 10) in the Armed Forces, or in as few as 90 days (with a 30-day stint) for full-time duty (Title 32) in the National Guard. If not called to active duty, regular military members need to serve two continuous years, and Reservists and Guard members must serve six years. VA loan benefits are available to most Veterans who served prior to the early 1980s as long as they have 90 total days of active military duty during WWII, Korean War or Vietnam War, or 181 continuous days of active duty between these conflicts. This is just a summary of the eligibility guidelines. Find a more comprehensive overview on the Department of Veterans Affairs website.
Regardless of when you served, the VA has a rule regarding honorable discharge. To be eligible for VA home loans, a Veteran, if separated from the military, must have done so for reasons other than dishonorable discharge. Also, if your service was shortened due to an injury, illness, reduction in force or some other qualifying reason, the VA may still award home loan benefits in some cases even if you do not meet the minimum service duration requirements.
For more information about this topic and others, visit www.veteransfirst.com
© 2025 Veterans First Mortgage. All Rights Reserved.
Veterans First Mortgage is a trade name of Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., a Wintrust Community Bank, NMLS# 449042.
Programs, rates, terms and conditions are subject to change at any time without notice. All approvals are subject to underwriting guidelines.
Restrictions apply depending on program selected.
No official U.S. military or other government agency endorsement is implied.
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Benefits of VA Loans
Keep your cash for more important things.
No Down Payment Potential
No Private Mortgage Insurance
Avoid these extra monthly fees.
Competitive Interest Rates
Get a rate you can live with.
VA loans have many attractive features that can make them a great option for servicemembers and Veterans looking to finance a home.
Get a rate you can live with.
Avoid these extra monthly fees.
Keep your cash for more important things.
No Private Mortgage Insurance
No Down Payment Potential
Competitive Interest Rates
VA loans have many attractive features that can make them a great option for servicemembers and Veterans looking to finance a home.
Frequently Asked Questions
The VA-approved lender looks at four key elements to determine approval:
1. Eligibility – Does your VA Certificate of Eligibility (COE) confirm your benefit and do you have ample entitlement to back the loan?
2. Property – Is the home “safe, sound, and sanitary” per the VA’s minimum property requirements (MPRs)?
3. Occupancy – Do you intend to live in the home as your primary residence?
4. Financials – Do you have enough qualifying income to make the potential new mortgage payments and related house expenses, plus cover your current debts and obligations, and family living expenses?
Yes. Two types of VA refinance loan programs—streamline and the cash-out—are available. Streamline loans, also referred to as Interest Rate Reduction Refinance Loans (IRRRLs), can be used by holders of existing VA loans to obtain a lower rate and payment, or to switch from an adjustable to a fixed-rate mortgage. VA cash-out loans are used to refinance either VA or non-VA loans, and can help borrowers consolidate debt or get cash out of a home’s equity to pay important expenses.
Yes, the seller is allowed to pay certain closing costs agreed upon in the purchase contract. Sellers may agree to pay up to all of the buyer’s closing costs. Additionally, the seller is allowed to pay some concessions. Think of seller’s concessions as things like furniture and debt payments thrown in to sweeten the deal.
The VA funding fee can also be considered a seller’s concession. Concessions cannot exceed 4% of the loan’s value; however, payment of buyer’s closing costs or reasonable discount points are not tallied in that 4%. Also, keep in mind that any fees, like real estate commissions, seller’s legal or broker fees, or costs for termite inspection, MUST be paid for by the seller, because these are fees a VA borrower is not allowed to pay.
The main fee unique to VA loans is the VA Funding Fee. This fee is charged at closing, and can run between 0.5% and 3.6% of the loan amount. The fee is collected and paid to the VA to help offset costs to administer the Loan Guaranty Program. Some borrowers, like surviving spouses and certain disabled Veterans, may be exempt.
Your financial qualifications determine how much you can borrow. The VA entitlement you have available limits how much the VA can guarantee for the lender. If the VA guaranty is less than 25% of the total loan amount, the lender may require a down payment to secure the deficit.
VA loans can be used to finance single- and multi-family homes, condos, townhomes, new construction, manufactured homes, and rural/farmhouses. Keep in mind, though, that not all lenders offer financing for every type of property.
Prequalifying is an optional step that can be taken early in the VA loan process. Based on financial information (mostly verbal) from the borrower before applying for a loan, a “prequal letter” can be provided by your lender. It’s not a guaranteed loan offer, but it specifies how much the lender may be willing to lend you, up to a certain amount, based on some assumptions. Having an idea of how much you can borrow can save you time while house hunting. Home sellers and their real estate agents typically prefer a prequal letter to accompany serious offers.
Frequently Asked Questions
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