VA Loan Guide — Get the Facts on Benefits for Veterans and Service Members

A common misconception is that the VA funding fee makes VA loans more expensive overall. In reality, while this one-time fee is required on most VA loans, it does not translate into the ongoing monthly costs that come with private mortgage insurance (PMI) on conventional loans.

VA loans do not require PMI, which can save borrowers significantly each month compared with other loan programs.

The VA funding fee can be paid upfront, financed into the loan, or covered with gift funds, giving flexibility in how it’s managed.

Many potential borrowers believe VA loans take longer to close due to “red tape.”

The timeline for a VA loan is comparable to conventional and FHA loans. The most important factors that influence closing speed are getting pre-approved, obtaining your Certificate of Eligibility (COE) promptly, and finding a property that meets VA standards — conditions common to all mortgage programs.

Any delays are usually tied to appraisal scheduling or property repairs required for VA compliance, not inherent procedural hurdles.

Some think that VA loans cannot be used for larger purchase amounts or “jumbo” financing.

While the VA doesn’t set strict dollar caps on what you can borrow, your available entitlement and lender criteria determine how much you can finance.

Many lenders will support substantial loan amounts when eligibility criteria and creditworthiness are strong.

Another myth is that you can only use your VA loan benefit once.

In fact, eligible borrowers can reuse their entitlement multiple times throughout their life, including for subsequent home purchases, as long as sufficient entitlement remains or is restored after selling a property financed with a VA loan.

Some Veterans worry that past financial hardships, like a foreclosure, permanently disqualify them from using their VA benefit again.

While certain impacts on entitlement can occur, it’s possible to re-establish eligibility and use the VA home loan benefit again, typically after demonstrating financial recovery and meeting lender-specific criteria.

The belief that VA loans are more expensive than conventional financing doesn’t hold up under scrutiny.

VA loans often have competitive interest rates, no down payment requirement, and no ongoing mortgage insurance, all of which can reduce long-term costs.

Additionally, the Department of Veterans Affairs caps lender fees, helping keep closing costs reasonable.

A persistent myth is that only Veterans who are no longer serving can qualify for VA home loan benefits.

In truth, active-duty service members, Veterans, Guard and Reserve members, and some surviving spouses can all qualify if they meet VA service and discharge criteria and secure a Certificate of Eligibility (COE).

VA loans can significantly enhance access to homeownership by offering:

• No required down payment for eligible borrowers.
• No private mortgage insurance, saving money each month.
• Competitive interest rates compared with other mortgage types.
• Closing cost limits imposed by the VA.
• The ability to purchase or refinance primary residences under favorable terms.
• Reusable benefits over a lifetime of homeownership opportunities.

These benefits have helped generations of military families secure homes with less financial strain than many alternative mortgage products.

Deciding whether a VA loan is the right path for your home purchase requires a clear assessment of your financial picture and goals.

Working with an experienced mortgage professional who understands specific VA guidelines can help you evaluate eligibility, navigate documentation like your COE, and compare VA loans with other mortgage options.

If you’re interested in learning more or want to discuss your situation with a knowledgeable loan officer at US Lending Company, connect with us through our loan officer page or reach out directly via our contact page.

Q: Do VA loans take longer to close than conventional loans?

A: No, VA loans typically close in a timeframe comparable to conventional and FHA loans. The key factors affecting closing speed are getting pre-approved, obtaining your Certificate of Eligibility (COE) promptly, and finding a property that meets VA standards—requirements common to most mortgage programs.

Q: Can I use my VA loan benefit more than once?

A: Yes, eligible borrowers can reuse their VA loan entitlement multiple times throughout their lifetime for subsequent home purchases, as long as sufficient entitlement remains or is restored after selling a previously VA-financed property.

Q: Are VA loans only available to Veterans who have left military service?

A: No, active-duty service members, Veterans, National Guard and Reserve members, and certain surviving spouses can all qualify for VA home loan benefits if they meet VA service and discharge criteria and obtain a Certificate of Eligibility (COE).

Q: Do VA loans require private mortgage insurance (PMI)?

A: No, VA loans do not require private mortgage insurance, which can save borrowers significant monthly costs compared to conventional loans. While VA loans do have a one-time funding fee, this doesn’t create ongoing monthly insurance expenses.

Q: Is there a maximum loan amount for VA loans?

A: The VA doesn’t set strict dollar caps on borrowing amounts. Your available entitlement and lender criteria determine how much you can finance. Many lenders support substantial loan amounts when eligibility criteria and creditworthiness are strong.

Q: Are VA loans more expensive than conventional loans?

A: No, VA loans often prove more affordable than conventional financing. They typically offer competitive interest rates, require no down payment, have no ongoing mortgage insurance, and feature VA-imposed caps on lender fees that help keep closing costs reasonable.

Q: Can I still use a VA loan if I previously had a foreclosure?

A: While foreclosures can impact your entitlement, it’s possible to re-establish eligibility and use the VA home loan benefit again. This typically requires demonstrating financial recovery and meeting lender-specific criteria.

Q: Do I need to make a down payment with a VA loan?

A: No, eligible borrowers can purchase a home with no down payment required, making VA loans one of the most accessible home financing options for military families.

Don’t let common myths stop you from exploring the home financing options available through the VA loan program.

With real benefits designed to support Veterans and service members, understanding the facts can put you on a stronger footing as you pursue homeownership.

Looking for more resources? Explore our blog or meet our loan officers for personalized advice.