SEAN ROWLEYMortgage Broker · NMLS #2003532UNDERSTAND YOUR BENEFIT
VA backing can open a path to homeownership. Your eligibility, lender approval, and the property each have a role to play.
A COE documents your VA home loan benefit based on service history. Veterans, eligible active-duty members, qualifying Guard/Reserve members, and some surviving spouses may qualify. Service dates, length of service, and discharge circumstances matter. Apply through VA or ask your lender for help.
A COE is not a loan approval. The lender reviews income, debts, credit, assets, and the proposed home. VA underwriting also considers residual income—the money left for family living expenses after required obligations and shelter costs.
Check the requirements for your service history ↗ · Read VA’s credit underwriting guidance ↗
With full entitlement, VA does not impose a loan limit. Your lender still sets the amount you qualify to borrow, and the property’s value matters. With entitlement tied to another VA loan, county loan limits and the amount already used can affect your down-payment requirement.
VA does not set a minimum credit score; individual lenders may. Compare loan terms and lender requirements rather than treating one lender’s decision as the entire VA program.
Prior use does not automatically end the benefit. Selling and paying off a previous VA loan is one route to restoration. Other restoration and remaining-entitlement situations need a COE review. Understand entitlement ↗ · Review restoration options ↗
No monthly PMI is a VA purchase-loan benefit. A down payment may not be required when entitlement, value, and lender requirements support the loan. Keep funds available for transaction costs and your move. See VA purchase-loan benefits ↗
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
The fee is calculated on the base loan amount. Qualifying borrowers may be exempt, including certain Veterans receiving service-connected disability compensation, qualifying surviving spouses, and eligible active-duty Purple Heart recipients. Have your lender verify your status.
For purchase loans, the funding fee can be financed; other closing costs generally cannot. Seller-paid closing costs are negotiable. VA’s 4% seller-concession limit is separate from ordinary closing-cost credits. Review appraisal, title, lender charges, prepaid insurance, taxes, escrow deposits, and any buyer-agent compensation on your Loan Estimate. Verify fee rules and all exemption categories ↗
A VA purchase is intended for a home you will occupy, not a vacation property or a purchase solely for investment. The handbook generally calls for occupancy within 60 days. Documented exceptions and military situations require review. Discuss deployments, a spouse’s occupancy, and delayed arrival before choosing a closing date.
The VA appraisal addresses value and property requirements. It does not replace an independent home inspection. If value is below the contract price, discuss reconsideration of value, renegotiation, or paying a gap with your lender and agent. Review contract protections before waiving any rights.
Read the occupancy chapter ↗ · Review VA’s buying process ↗
VA notes property-requirement changes effective May 1, 2026. Your lender and appraiser should use current guidance; older training slides may not reflect it. VA update notice ↗
Ask for your lender’s exact document list. Do not email Social Security numbers, account statements, or military records through a general contact form. Use the secure application portal linked below.
Often, yes. Ask the lender to review your COE, existing VA loans, and restoration or remaining entitlement before making another offer.
VA purchase loans can support a home with up to four units that meets occupancy requirements, or a condominium in a VA-approved project. Lender availability and property review still apply.
You can begin the financing discussion before arrival. Keep your report date, occupancy requirements, inspection access, and temporary lodging plan in view before committing to dates.
Ask for a separate review. IRRRLs, cash-out refinances, and assumptions have different rules and costs. For an assumption, clarify approval, the equity gap, release of liability, and whether your entitlement will be restored. The purchase-fee table above does not apply to those transactions.
The Closing Disclosure generally must reach you at least three business days before closing. Compare it with your Loan Estimate and ask about differences before signing.
YOUR NEXT STEP
Questions first. A clear plan from there.