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VA Loans Explained

VA loans are a powerful home financing option available to eligible veterans, active-duty service members, and certain surviving spouses. Backed by the U.S. Department of Veterans Affairs, VA loans are designed to make homeownership more accessible and affordable for those who have served.

Below, we explain how VA loans work, who they are designed for, and how they compare to other common mortgage options.

Who VA Loans Are Designed For

VA loans are available to buyers who meet military service eligibility requirements, including:

  • Veterans

  • Active-duty service members

  • National Guard and Reserve members (with qualifying service)

  • Certain surviving spouses

 

VA financing is often especially helpful for eligible buyers who want to minimize upfront costs while maintaining long-term affordability.

How VA Loans Work

VA loans are government-backed mortgages that allow lenders to offer favorable terms with reduced risk.

Key features of VA loans include:

  • Down payment: Often 0% for eligible borrowers

  • Mortgage insurance: No monthly mortgage insurance required

  • Credit guidelines: More flexible than many conventional programs

  • Loan terms: Commonly 30-year or 15-year fixed options

 

Instead of mortgage insurance, VA loans typically include a VA funding fee, which helps offset the cost of the program. This fee may be reduced or waived for certain borrowers.

VA Loans Compared to Other Loan Options

VA vs. Conventional Loans​

  • VA loans often allow 0% down, while conventional loans typically require a down payment

  • VA loans do not require monthly mortgage insurance

  • Conventional loans are available to all qualifying buyers, while VA loans require eligibility

 

VA vs. FHA Loans​

  • FHA loans require mortgage insurance for the life of the loan

  • VA loans do not require monthly mortgage insurance

  • VA loans are limited to eligible service members and veterans

 

VA vs. Jumbo Loans

  • VA loans may allow higher loan amounts with competitive terms, depending on entitlement

  • Jumbo loans typically require stricter qualification and higher reserves

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Understanding these differences helps eligible buyers take full advantage of the benefits VA loans offer.

Common Questions About VA Loans

Do VA loans require a down payment?
In many cases, no. Eligible borrowers can often purchase a home with no down payment, depending on entitlement and loan amount.

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What is the VA funding fee?
The VA funding fee is a one-time fee paid at closing (or financed into the loan) that helps keep the VA loan program available. Some borrowers, including those with service-connected disabilities, may be exempt.

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Can VA loans be used more than once?
Yes. Many eligible borrowers can use their VA benefit multiple times, depending on entitlement restoration.

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Are VA loans only for first-time buyers?
No. VA loans can be used by first-time buyers and repeat homeowners alike.

Your Next Step

VA loans offer meaningful benefits, but the best financing choice still depends on your full financial picture and long-term plans.

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If you’re eligible for a VA loan and want help understanding how it compares to other options, we’re happy to walk through the details and help you decide what makes the most sense for you.

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