The basics
A VA loan is a mortgage benefit available to active-duty service members, veterans, and certain surviving spouses, backed by the U.S. Department of Veterans Affairs. It's earned through service, and it's one of the strongest mortgage programs available.
What VA loans offer
- $0 down payment on most VA purchase loans.
- No private mortgage insurance — ever. This alone can save $200–$400/month versus comparable low-down-payment conventional financing.
- Competitive rates, typically a touch below conventional pricing.
- Flexible credit standards, similar to FHA.
- No prepayment penalties.
- Reusable benefit — you can use a VA loan multiple times over your lifetime.
Who qualifies
Eligibility is based on length and character of service:
- 90 days of active duty during wartime.
- 181 days of active duty during peacetime.
- Six years in the National Guard or Reserves.
- Surviving spouses of service members who died in the line of duty (in some cases).
Your VA Certificate of Eligibility (COE) is the document that proves it. We can help you pull it as part of the loan process.
The VA funding fee
VA loans carry a one-time funding fee that helps fund the program for future veterans. It's typically rolled into the loan balance, so it doesn't require cash at closing.
- First use, $0 down: 2.15% of the loan amount.
- Subsequent use, $0 down: 3.3% of the loan amount.
- 5%+ down: Lower funding fee.
- 10%+ down: Lower still.
- Disabled veterans (with VA-rated disability) are exempt entirely.
VA appraisals
VA appraisals are stricter than conventional. The home must meet VA Minimum Property Requirements (MPR) — basic safety and habitability standards. Common flags: leaking roofs, missing handrails, exposed wiring, structural issues.
If the appraiser flags something, repairs may be needed before closing. The seller can make them, or in some cases the buyer can. This sometimes adds time to a VA purchase compared to conventional.
VA refinance options
If you already have a VA loan, two refinance paths are available:
- VA IRRRL (Interest Rate Reduction Refinance Loan): Streamlined refinance for current VA borrowers. No appraisal in many cases. Designed to drop your rate quickly.
- VA Cash-Out Refinance: Pulls cash from your home's equity. Available even if your current loan isn't VA.
Service-eligible and ready to look at homes?
VA loans take a bit more documentation than conventional, but the savings are real. Talk to a loan officer — we've walked plenty of veterans through the COE process.
WeFund Mortgage Corporation is not affiliated with or acting on behalf of FHA, VA, USDA, or the federal government.