VA Loans
Zero-down financing, no mortgage insurance, and competitive rates — exclusively for those who have served.
Program Overview
VA loans are home loans guaranteed by the U.S. Department of Veterans Affairs. Available to eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses, VA loans are among the most powerful mortgage programs in the market. They offer zero down payment, no private mortgage insurance, and competitive interest rates.
Who Is This Loan For?
- ✓ Veterans of the U.S. Armed Forces
- ✓ Active-duty service members
- ✓ National Guard and Reserve members (after qualifying service)
- ✓ Surviving spouses of veterans who died in service or from service-connected disability
- ✓ Current VA loan holders looking to refinance (VA IRRRL)
Key Benefits
No Down Payment
0% down purchase financing may be available to eligible borrowers, up to the full entitlement amount.
No Mortgage Insurance
Unlike FHA and conventional loans under 20% down, VA loans have no monthly mortgage insurance premium.
Competitive Rates
VA loans typically carry competitive interest rates compared to conventional and FHA loans for equivalent credit profiles.
Limited Closing Costs
VA limits certain closing costs. Seller concessions (distinct from closing costs) are capped at 4% of the property's reasonable value. VA clarified in 2024 that seller payment of buyer-broker charges is not treated as a seller concession.
Qualification at a Glance
General Requirements
- Valid Certificate of Eligibility (COE) based on military service
- VA does not set a minimum credit score; lenders may apply their own requirements
- VA underwriting evaluates the full financial profile, including residual income and compensating factors
- Debt-to-income ratios are evaluated based on the complete loan scenario and lender guidelines
- Property must be owner-occupied primary residence
- VA appraisal required confirming minimum property requirements (MPRs)
- VA funding fee applies (may be waived for disabled veterans)
- Important: Airus Lending is a mortgage broker. Final approval depends on lender requirements, AUS findings, and full file review.
Advantages
- ✓ No down payment required for many eligible borrowers
- ✓ No monthly mortgage insurance
- ✓ Competitive interest rates
- ✓ VA limits certain closing costs; seller concessions capped at 4%
- ✓ VA IRRRL streamline refinance for existing VA borrowers
- ✓ No prepayment penalty
- ✓ Assumable by qualified buyers
- ✓ Funding fee can be financed or waived
Tradeoffs to Consider
- ↔ VA funding fee applies (1.25%–3.3% depending on service and down payment)
- ↔ Primary residence requirement — cannot be used for investment property
- ↔ VA appraisal may flag issues conventional appraisals would not
- ↔ Condo must be VA-approved or qualify for single-unit approval
- ↔ Must have eligible military service
Common Scenarios
Active-Duty First-Time Buyer
An active-duty service member purchasing their first home with zero down. VA loan eliminates the down payment requirement and PMI, significantly lowering the monthly cost.
Veteran Scaling Down
A retired veteran selling their current home and purchasing a smaller property. Full VA entitlement restored after payoff, allowing another zero-down purchase.
VA IRRRL Refinance
An existing VA borrower refinances to a lower rate via the Interest Rate Reduction Refinance Loan — no appraisal, minimal paperwork, faster close.
Documents Typically Needed
- Certificate of Eligibility (COE)
- DD-214 (for veterans)
- Current military orders (for active duty)
- Two most recent pay stubs or LES
- Last two years of W-2s
- Last two years of tax returns (if applicable)
- Two most recent bank statements
- Government-issued photo ID
Frequently Asked Questions
Yes. There is no limit on how many times you can use a VA loan. Once your previous entitlement is restored (usually by paying off the prior VA loan), you can use the benefit again.
Broker Disclosure: Scout Financial Group Inc DBA Airus Lending is a licensed mortgage broker (NMLS #2187418) and does not make loans or credit decisions. Airus Lending works with multiple wholesale lenders to help borrowers compare available loan options. Final approval depends on the lender, automated underwriting findings, documentation, state requirements, and overall borrower profile. Not all applicants will qualify.