A VA home loan is a mortgage benefit guaranteed by the U.S. Department of Veterans Affairs, designed to help active-duty service members, veterans, and eligible surviving spouses achieve homeownership. These loans are offered through private lenders but backed by the VA, providing unique advantages that recognize your service and sacrifice.
Why Choose a VA Loan?
VA loans are one of the most powerful home financing tools available to those who have served our country. They offer unmatched benefits that make homeownership more accessible and affordable.
Zero Down Payment Required
One of the most significant benefits of a VA loan is the ability to purchase a home with no down payment. This means you can finance 100% of the home's value, making it easier to become a homeowner without needing years to save for a down payment.
No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA loans do not require private mortgage insurance—even with zero down. This can save you hundreds of dollars per month compared to other low-down-payment loan options, making your monthly payments more affordable.
Competitive Interest Rates
Because VA loans are backed by the federal government, lenders can offer highly competitive interest rates—often lower than conventional loans. This government guarantee reduces the lender's risk, and those savings are passed on to you in the form of better rates.
Limited Closing Costs
The VA limits the types of closing costs veterans can be charged, and sellers are allowed to pay all of your loan-related closing costs if negotiated. This protection ensures you're treated fairly and helps reduce your out-of-pocket expenses at closing.
Understanding the VA Funding Fee
The VA funding fee is a one-time payment that helps keep the VA loan program running for future generations of service members. The fee varies based on your down payment amount, whether it's your first VA loan, and your military category.
Typical Funding Fees
- First-time use, zero down: 2.15% of the loan amount
- Subsequent use, zero down: 3.3% of the loan amount
- With 5% down or more: Reduced fees (as low as 1.25%)
The good news? The funding fee can be rolled into your loan amount, so you don't have to pay it upfront.
Funding Fee Exemptions
The following borrowers are exempt from paying the VA funding fee:
- Veterans receiving VA compensation for service-connected disabilities
- Veterans who would be entitled to disability compensation but are receiving retirement pay instead
- Surviving spouses of veterans who died in service or from service-connected disabilities
Who Is Eligible for a VA Loan?
VA loans are available to those who have served our country with honor. Eligibility is based on your length and character of service.
Active-Duty Service Members
If you've served 90 consecutive days on active duty during wartime or 181 days during peacetime, you may be eligible. Current active-duty members can also qualify.
Veterans
Most veterans who served the minimum active-duty requirements and were discharged under conditions other than dishonorable are eligible. Specific requirements vary based on when you served.
National Guard and Reserves
Members who have completed 6 years of service in the Selected Reserve or National Guard, or were discharged early due to a service-connected disability, may qualify.
Surviving Spouses
Unmarried surviving spouses of service members who died in the line of duty or from service-connected disabilities may be eligible for VA loan benefits.
Certificate of Eligibility (COE)
To use your VA loan benefit, you'll need a Certificate of Eligibility (COE). This document confirms to lenders that you qualify for a VA loan based on your military service.
How to Obtain Your COE
- Online: Through the VA's eBenefits portal (fastest method)
- Through your lender: We can help you request your COE as part of the application process
- By mail: Submit Form 26-1880 with proof of service to your VA Eligibility Center
Most borrowers can receive their COE within minutes online, making the process quick and seamless.
VA Loan Property Requirements
The VA has specific requirements to ensure the property is safe, structurally sound, and sanitary. The home must:
- Be your primary residence
- Meet the VA's Minimum Property Requirements (MPRs)
- Pass a VA appraisal conducted by a VA-approved appraiser
- Be move-in ready (no major repairs needed)
VA loans can be used for single-family homes, condos (if VA-approved), townhomes, and multi-unit properties (up to 4 units) as long as you occupy one of the units.
Requirements at a Glance
While the VA sets the eligibility standards, individual lenders may have additional requirements:
| Requirement | Typical Guidelines |
|---|---|
| Credit Score | No VA minimum; most lenders require 580-620+ |
| Down Payment | 0% (100% financing available) |
| Debt-to-Income Ratio | Generally 41% maximum (some flexibility) |
| Employment | Stable income and 2-year history preferred |
| Property Types | Primary residence only |
| Certificate of Eligibility | Required |
Supporting Those Who Served
At CNA Equity Group, we have deep respect and appreciation for the service and sacrifice of our military members, veterans, and their families. Helping you maximize your VA loan benefits is both an honor and a responsibility we take seriously.
With over 24 years of experience, we understand the unique aspects of VA financing and work diligently to make your home buying experience smooth and stress-free.
We provide:
- Expert VA loan guidance from application through closing
- Help obtaining your Certificate of Eligibility
- Access to VA-approved lenders with competitive rates
- Clear explanations of your benefits and options
- Dedicated support to honor your service with exceptional service
Ready to Use Your VA Benefits?
You've earned this benefit through your service. Let us help you make the most of it. Whether you're a first-time homebuyer or looking to upgrade, we're here to guide you every step of the way.
Call us at (925) 244-1505 to discuss your VA loan options and get started today.
Thank you for your service.