VA Home Loans: Zero-Down Potential for Those Who Served
Use your hard-earned benefit with a lender who knows VA inside and out.
What Is a VA Loan?
A VA loan is a mortgage benefit guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. This guarantee allows lenders to offer incredibly favorable terms: zero down payment, no private mortgage insurance (PMI), competitive interest rates, and flexible credit requirements. It's one of the most powerful homeownership benefits available, and it's designed to honor your service by making homeownership more accessible and affordable.
Unlike conventional and FHA loans, VA loans don't require monthly mortgage insurance, which can save you hundreds of dollars per month. You will pay a one-time VA funding fee (typically 2.15-3.3% of the loan amount for first-time use), but this fee can be rolled into your loan balance, so you don't need to pay it out of pocket at closing. Veterans with service-connected disabilities are exempt from the funding fee entirely, making VA loans even more affordable.
At West Capital Lending, Dana Peterson has extensive experience helping veterans and active-duty service members navigate the VA loan process across Alabama, Arizona, Colorado, Florida, Idaho, Oklahoma, Pennsylvania, Tennessee, Virginia, and Washington. We understand the unique aspects of VA loans—from Certificate of Eligibility (COE) requirements to residual income calculations—and we'll ensure you maximize this hard-earned benefit.
Who Should Consider a VA Loan?
Eligibility Snapshot
Quick overview of VA loan requirements
Credit & Income
- Minimum Credit Score: No VA minimum (lenders typically require 580-620)
- Ideal Credit Score: 640+ for best rates and lender options
- Income Documentation: W-2s, pay stubs, tax returns, LES (if active duty)
- Residual Income: Must meet VA's regional residual income guidelines
Down Payment & Fees
- Minimum Down Payment: 0% (100% financing available)
- VA Funding Fee: 2.15-3.3% (can be financed; waived for disabled veterans)
- Mortgage Insurance: None required (major savings vs. conventional/FHA)
- Occupancy: Primary residence only (1-4 units)
Understanding Rates, Fees & Costs
VA loan interest rates are typically among the lowest available because the VA guarantee reduces the lender's risk. Combined with zero down payment and no PMI, VA loans offer exceptional value. The one-time VA funding fee varies based on your down payment (if any), whether it's your first or subsequent use of the benefit, and your military category (regular military, Reserves/Guard, or surviving spouse).
VA Funding Fee Breakdown: For first-time use with zero down, the funding fee is 2.15% of the loan amount. If you put down 5-9%, it drops to 1.5%; with 10% or more down, it's 1.25%. For subsequent use, the fee is 3.3% with zero down. Veterans receiving VA disability compensation are exempt from the funding fee entirely, which can save tens of thousands of dollars.
Seller Concessions: VA loans allow sellers to pay up to 4% of the purchase price toward your closing costs, which can cover most or all of your out-of-pocket expenses. This makes VA loans incredibly cash-efficient—you can potentially buy a home with little to no money down and minimal closing costs.
Closing Costs: While you'll still pay for appraisal, title insurance, and other standard closing costs, the VA limits what lenders can charge you. For example, you cannot be charged for the lender's attorney fees or certain processing fees. Your Loan Estimate will clearly itemize all costs, and we'll review it to ensure compliance with VA guidelines.
How the VA Loan Process Works
Obtain Your Certificate of Eligibility (COE)
Same day - 2 weeksWe can often pull your COE electronically within minutes. If not, you'll need to apply through the VA with your DD-214 or other service documentation. The COE confirms your eligibility and available entitlement.
Pre-Approval & Property Search
1-3 daysWe'll review your credit, income, and residual income to issue a pre-approval letter. Armed with this, you'll work with your agent to find a home that meets VA minimum property requirements (MPRs).
VA Appraisal & Underwriting
10-14 daysThe VA appraisal ensures the property meets safety and sanitation standards and is worth the purchase price. Meanwhile, our processor submits your file to underwriting for conditional approval.
Clear to Close
3-7 daysOnce all conditions are satisfied and the appraisal is approved, underwriting issues final clearance. We'll coordinate with the title company to schedule your closing.
Signing & Funding
1-2 daysYou'll sign your loan documents and receive the keys to your new home. The VA funding fee (if applicable) is added to your loan balance, and you'll never pay PMI.
Documents You'll Need
Military & Income
- • Certificate of Eligibility (COE)
- • DD-214 (if separated/retired)
- • LES (Leave and Earnings Statement) if active duty
- • Most recent 2 years W-2s
- • Most recent 30 days pay stubs
- • 2 years tax returns (if self-employed or receiving rental income)
Assets & Identity
- • Most recent 2 months bank statements (all pages)
- • Retirement/investment account statements
- • VA disability award letter (if applicable)
- • Government-issued photo ID
- • Social Security card
VA vs. Conventional vs. FHA
| Feature | VA | Conventional | FHA |
|---|---|---|---|
| Minimum Down Payment | 0% | 3-5% | 3.5% |
| Mortgage Insurance | None (funding fee only) | PMI if <20% down | Upfront + annual MIP |
| Credit Score | No VA minimum (lender overlays apply) | 620 (680+ ideal) | 580 (500 with 10% down) |
| Seller Concessions | Up to 4% | Up to 3-9% | Up to 6% |
| Property Standards | Moderate (safety/sanitation) | Flexible | Strict (safety/livability) |
| Best For | Eligible veterans and service members | Strong credit, standard income | Lower credit, smaller down payment |
Questions about your VA eligibility? Contact Dana for a personalized consultation.
Pro Tips & Common Mistakes
Your VA benefit is reusable. Once you sell or pay off a home purchased with a VA loan, your entitlement is restored and you can use it again. You can even have multiple VA loans at once if you have sufficient remaining entitlement.
Consider a VA IRRRL for refinancing. The Interest Rate Reduction Refinance Loan (IRRRL) is a streamlined refi option for existing VA borrowers. It requires no appraisal, minimal documentation, and can lower your rate with minimal hassle.
Common Mistake: Not getting your COE early. Some veterans wait until they're under contract to request their Certificate of Eligibility, which can delay closing. Get your COE as soon as you start thinking about buying.
Common Mistake: Assuming you can't use VA with bad credit. While lenders have overlays, many will work with veterans who have credit scores in the 580-620 range. Don't assume you're disqualified—talk to a VA-experienced lender first.
Serving Veterans Across 10 States
Dana Peterson is licensed to originate VA loans in Alabama, Arizona, Colorado, Florida, Idaho, Oklahoma, Pennsylvania, Tennessee, Virginia, and Washington. These states are home to significant veteran populations and major military installations. For example, Virginia has a large concentration of active-duty and retired military near Norfolk and Quantico, while Washington serves Joint Base Lewis-McChord and Naval Base Kitsap.
Each state has unique considerations for VA buyers: Florida's condo market requires careful attention to VA condo approval, while Colorado's mountain properties may need special attention to well and septic systems during the VA appraisal. Our multi-state expertise ensures you're prepared for regional nuances and can close smoothly no matter where you're buying.
Frequently Asked Questions
Am I eligible for a VA loan?
You're generally eligible if you're a veteran with at least 90 consecutive days of active service during wartime, 181 days during peacetime, or 6+ years in the National Guard/Reserves. Surviving spouses of veterans who died in service or from service-connected disabilities may also qualify. Check your eligibility at VA.gov or contact us to help you obtain your COE.
Can I use a VA loan more than once?
Yes! Your VA benefit is reusable. Once you sell or pay off a home purchased with a VA loan, your entitlement is restored. You can even have multiple VA loans simultaneously if you have sufficient remaining entitlement.
Do I have to pay the VA funding fee?
Most borrowers pay a one-time funding fee (2.15-3.3% of the loan amount), which can be rolled into your loan. However, veterans receiving VA disability compensation are exempt from the funding fee entirely.
What are VA minimum property requirements (MPRs)?
The VA requires properties to be safe, sanitary, and structurally sound. The appraiser will check for issues like roof damage, faulty HVAC, peeling paint, or safety hazards. Required repairs must be completed before closing.
Can I buy a fixer-upper with a VA loan?
Standard VA loans require the property to be move-in ready. However, the VA Renovation Loan allows you to finance both the purchase and renovation costs in one loan. Ask us about VA renovation options if you're interested in a fixer-upper.
Can I use a VA loan to buy a multi-unit property?
Yes! VA loans allow you to purchase 2-4 unit properties as your primary residence. You must live in one unit, and the rental income from the other units can be used to help you qualify.
What is residual income and why does it matter?
Residual income is the amount of money you have left over each month after paying all debts and living expenses. The VA uses regional residual income guidelines to ensure you have enough cushion to handle unexpected expenses. It's a more holistic measure of affordability than just debt-to-income ratio.
Can I get a jumbo VA loan?
Yes! VA loans have no maximum loan amount, though your entitlement may limit how much you can borrow with zero down. If you're buying above your entitlement limit, you may need to make a down payment (typically 25% of the amount over your entitlement).
What Our Clients Say
John Sarnecky
24 October 2025
Excellent service with West Capital Funding, Irvine California. Randy Mathis is at the top of the loan business. He saved us a lot of money by getting...
Kimberly Bell
24 October 2025
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22 October 2025
Jon was great to work with on the refi of our property. Our situation wasn't straightforward, but Jon listened to what we were looking for, was able t...
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22 October 2025
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22 October 2025
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21 October 2025
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21 October 2025
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21 October 2025
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20 October 2025
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19 October 2025
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16 October 2025
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16 October 2025
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Ready to Use Your VA Home Loan Benefit?
Let's discuss your eligibility and get you pre-approved. Honor your service with the homeownership benefit you've earned.
This is not a commitment to lend. All loans subject to credit approval and underwriting guidelines.
West Capital Lending is an Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and acceptable collateral. Interest rates, terms, and program availability may change without notice. Not all applicants will qualify. Information is for educational purposes only and is not financial or legal advice.
Company NMLS: 1566096 | MLO NMLS: 173133 (Dana Peterson)
Address: 24 Executive Park, STE 250, Irvine, CA 92614
Licensed in: AL, AZ, CO, FL, ID, OK, PA, TN, VA, WA