A Home Loan Benefit You’ve Earned.
VA loans provide powerful home financing benefits for eligible Veterans, active duty service members, and qualifying surviving spouses, including the possibility of purchasing with no down payment.
What Are VA Loans?
VA loans are mortgages backed by the U.S. Department of Veterans Affairs and offered through approved private lenders. They provide valuable home financing benefits to eligible Veterans, active duty service members, National Guard and Reserve members, and certain surviving spouses.
One of the biggest advantages of VA financing is the ability for qualified borrowers to purchase a home with no down payment, provided the purchase price does not exceed the property's appraised value. VA loans also do not require monthly private mortgage insurance or FHA style mortgage insurance premiums.
Eligibility for the VA home loan benefit is established through a Certificate of Eligibility (COE), while the lender determines whether the borrower meets the applicable credit, income, and other financing requirements.
At a Glance
| Down Payment | No down payment may be required for eligible borrowers |
| Credit Score | VA does not establish a universal minimum credit score; lender requirements may apply |
| Eligibility | Available to eligible Veterans, service members, and qualifying surviving spouses |
| VA Funding Fee | A one time funding fee may apply; certain eligible borrowers are exempt |
| Occupancy | The home must generally be occupied by the borrower as a primary residence |
Is a VA Loan Right for You?
A VA loan may be a good fit if you:
- Are an eligible Veteran, active duty service member, or qualifying surviving spouse
- Want to explore purchasing a home without a down payment
- Plan to purchase and occupy the property as your primary residence
- Want to avoid monthly private mortgage insurance
Important Considerations
VA Funding Fee
Many VA borrowers pay a one time VA funding fee. The amount can depend on the type of loan, down payment, and whether the borrower has previously used the VA home loan benefit. Certain Veterans, service members, and surviving spouses are exempt. The fee may generally be paid at closing or financed into the loan.
Certificate of Eligibility
A Certificate of Eligibility establishes that you meet the VA's service based eligibility requirements. Having a COE does not automatically guarantee loan approval; borrowers must also meet the lender's credit, income, and other requirements.
Primary Residence
A VA backed purchase loan generally requires the borrower to live in the home being purchased. VA financing is therefore not intended for purchasing a property solely as a second home or investment property.
Property & Appraisal
The property must satisfy VA requirements, and an appraisal is used to establish its reasonable value. With a no down payment purchase, the sales price cannot exceed the appraised value if the borrower wants to finance the entire purchase price.
Explore Related Loan Programs
Conventional Loans
Flexible mortgage financing with a variety of down payment, property, and occupancy options for qualified borrowers.
LEARN MOREFHA Loans
Government backed financing offering lower down payment options and flexible qualification guidelines for eligible homebuyers.
LEARN MOREVA Refinance
Eligible VA homeowners may have options to refinance an existing mortgage, including VA Interest Rate Reduction Refinance Loans and cash out refinance options.
LEARN MOREDown Payment Assistance
Explore available assistance programs that may help eligible homebuyers with qualifying upfront homeownership costs.
LEARN MORECommon Questions About VA Loans
A VA backed home loan is financing obtained through a private lender with a portion of the loan guaranteed by the U.S. Department of Veterans Affairs. The guaranty allows lenders to provide eligible borrowers with benefits that can include no down payment and no monthly mortgage insurance.
Eligible borrowers may be able to purchase with no down payment when the purchase price does not exceed the property's appraised value. A down payment may be necessary or beneficial in certain circumstances.
Eligible borrowers must meet minimal credit score guidelines and standard debt-to-income limits.VA backed purchase loans do not require monthly PMI or FHA style mortgage insurance premiums. A one time VA funding fee may apply instead, unless the borrower qualifies for an exemption.
The VA does not establish a universal minimum credit score. Lenders evaluate credit and may establish their own requirements, so qualification can vary by lender and borrower profile.
See What Options May Work for You
Loan programs, rates, terms, and eligibility requirements are subject to change and may vary based on borrower qualifications, property type, occupancy, loan amount, and other factors. Not all applicants will qualify. Contact Premier Point Mortgage for current program requirements and available options.
