03 · Loan program
VA.
An earned benefit for veterans, active duty service members, reservists, National Guard, and eligible surviving spouses. Backed by the Department of Veterans Affairs. Zero down. No PMI ever. The catch is a one-time funding fee — and even that's waived for service-connected disabled veterans.
$0
down payment
No
PMI ever
100%
financing
The funding fee, in full
Zero down — one fee, sometimes none.
No down payment, no PMI ever. In exchange, a one-time funding fee that rolls into the loan — and is waived entirely for veterans with a service-connected disability.
2.15%
first use, $0 down
1.25%
with 10%+ down
$0
if service-disabled
· The structure
How it's built
- Down payment
- $0 required. 100% financing standard. You can put money down to reduce the funding fee, but it's never required.
- PMI
- None ever. Replaced by a one-time funding fee at closing, which can be rolled into the loan.
- Funding fee
- 2.15% first use with $0 down (1.5% with 5% down, 1.25% with 10%+). 3.3% on subsequent $0-down uses. Waived for veterans receiving disability compensation, Purple Heart recipients, and surviving spouses on DIC.
- Loan types
- Fixed (15- or 30-year typical) or ARM. VA Streamline (IRRRL) refinance available with minimal documentation — its funding fee is just 0.5%.
- Loan limits
- With full entitlement, none — since 2020 the constraints are the appraisal and what you qualify for, not a county chart. Limits only apply if part of your entitlement is tied up in another VA loan.
- Property types
- Primary residence only. 1–4 unit properties allowed if you occupy one unit.
· What you'll need
Qualifying
- Eligibility
- Need a Certificate of Eligibility (COE). Drake can pull this for you in minutes if you have your service info handy.
- Credit score
- VA itself sets no minimum. Most lenders want 580–620+; 660+ for best pricing.
- Debt-to-income
- 41% is a guideline, not a wall — VA's own handbook calls it secondary. A file above 41% passes without extra justification when residual income beats VA's table by 20%+.
- Residual income
- VA's signature requirement — minimum monthly income left over after all expenses, scaled to family size and region. This is what protects veterans from being over-leveraged, and it matters more than the DTI number.
- Income docs
- Standard — two years W-2s, pay stubs. LES (Leave & Earnings Statement) for active duty.
- Entitlement reuse
- VA benefit can be reused — entitlement is restored after a sale or qualifying refinance.
· Straight talk
Not for you if you haven't served and aren't an eligible surviving spouse — this one is an earned benefit, not a product anyone can opt into.
When a loan I offer isn't right for you, I'll say so — and point you to the one that is.
· Common questions
FAQ
Do I have to be active duty to use VA?
No — veterans, reservists, National Guard, and surviving spouses of service members who died in service or from a service-connected disability also qualify.
What's the funding fee actually cost me?
On a $400k loan, first use with $0 down: ~$8,600. Can be rolled into the loan, so no out-of-pocket. Waived entirely if you have service-connected disability.
Can I use my VA benefit more than once?
Yes. Entitlement gets restored after you sell or refinance out, and there's no lifetime cap on uses.
Are sellers required to pay closing costs?
No, but VA caps what the buyer can pay. Sellers commonly cover the difference; this is a normal negotiation point.
VA or Conventional with 5% down — which wins?
Usually VA. Better rate, no PMI, lower monthly payment. The funding fee is the trade, but rolled into the loan it's often cheaper than years of Conventional PMI.
Does my BAH or disability income count?
Yes — and tax-free income gets grossed up 125% when calculating your ratio, because the number that matters is what you actually keep. Military benefits are also a named compensating factor in VA's underwriting guide.
What if I've had a bankruptcy or foreclosure?
VA's handbook says a Chapter 7 discharged more than two years ago may be disregarded — same two-year rule for foreclosures. There's no minimum credit score in the guidelines, and collections don't automatically have to be paid off. VA reads the whole file, not one event.
Can I use VA for an investment property?
Not directly. Primary residence only. You can buy a 2–4 unit and rent the other units while occupying one — that's allowed.
· Questions left?
Ask me directly.
Four quick taps tell me where you are — or skip the form and just call, text, or email. No follow-up sequence either way. About VA loans, or anything else.
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