If you’ve served in the military, there’s a mortgage benefit you’ve earned that many people don’t fully understand. VA loans are one of the most powerful products available — here’s what you need to know.
Who Is Eligible?
- Active-duty service members with 90+ days of consecutive service
- Veterans who meet length-of-service requirements
- National Guard and Reserve members with 6+ years of service
- Surviving spouses of service members who died in the line of duty
The Key Benefits
- Zero down payment — You can finance 100% of the home’s value.
- No private mortgage insurance — No PMI means lower monthly payments compared to conventional loans with low down payments.
- Competitive interest rates — VA rates are consistently among the lowest available.
- Limited closing costs — The VA limits what lenders can charge veterans in closing costs.
- No prepayment penalty — Pay off your loan early without extra fees.
The VA Funding Fee
Most VA loans come with a one-time funding fee (typically 1.25%–3.3% of the loan amount). This fee can be rolled into the loan. Veterans receiving VA disability compensation are exempt from the funding fee.
VA vs. Conventional: A Quick Example
On a $400,000 home with zero down: a VA loan at 6.25% with no PMI vs. a conventional loan at 6.25% with PMI (~$200/month) means the VA loan saves you roughly $2,400/year in insurance alone — plus you didn’t need a $20,000 down payment.
If you’re eligible for a VA loan, it’s almost always worth exploring. I create personalized comparison videos for veteran clients showing exactly how VA financing stacks up — so you can see the real savings for yourself.