VA loans

What a VA loan is

VA home loans are made by private lenders and guaranteed by the U.S. Department of Veterans Affairs. The guarantee is why many VA files can close with little or no money down and without monthly PMI. VA does not usually lend the money itself.

The program dates to the GI Bill era. Eligibility, entitlement, and the funding fee are VA’s rules. We originate the loan; VA.gov is the source for whether you are eligible and what your Certificate of Eligibility (COE) shows.

Who it is for

VA is for eligible Veterans, active-duty service members, and in some cases surviving spouses. Service-length rules differ by era and by component (active duty, National Guard, Reserves). We will not reprint a wartime-dates list that goes stale. Check eligibility on VA.gov or let us help pull a COE.

• A COE is the document that shows entitlement. You can request it on VA.gov or we can often retrieve it with your authorization.
• Dishonorable discharge generally blocks the benefit. Other character-of-discharge questions belong with VA, not with a marketing page.
• This is a primary-residence program, not a way to finance a purely investment property.

Down payment, funding fee, and what “no PMI” means

With full entitlement, VA purchase loans commonly close with little or no money down. Partial entitlement (for example if you still have a VA loan, or a prior VA foreclosure) can create a down-payment requirement. The COE and a residual-entitlement calculation decide that — not a slogan.

VA does not charge monthly PMI. Many borrowers do pay a VA funding fee, which can often be financed. Some borrowers are exempt, including many with qualifying disability ratings and some surviving spouses. Funding-fee percentages change. We will not print a table. Use VA.gov and ask us for the current figure that applies to your exemption status and down payment.

• No prepayment penalty on VA loans.
• Seller concessions and VA-allowable costs follow VA rules; they are not unlimited.
• Residual income (money left after debts and PITI) is a VA-specific test alongside DTI.

What you can buy

VA financing is for a home you will occupy. Typical property types include existing single-family homes, new construction, and townhouses. Condos must be on VA’s approved list (or obtain approval). Manufactured homes and lots have extra VA rules. A VA appraisal issues a Notice of Value and checks minimum property requirements: safe, sound, and sanitary.

Using VA more than once

Entitlement can be reused. If you paid off a prior VA loan and no longer own that home, restoration is commonly available. One-time restoration while you still own the prior home is a narrower VA process. Bring the old HUD-1 or closing disclosure and a payoff letter so VA is not guessing. We will not treat “I had a VA loan in 2012” as automatically available entitlement until the COE says so.

Tradeoffs (honest list)

VA is a strong benefit. It is not frictionless. Appraisals and remaining repairs can add time. Some sellers have heard outdated stories about slow VA closings; a complete file closes on a normal timeline. Funding fee (if not exempt) is a real cost even when there is no PMI. Residual income can trip a file that looks fine on DTI alone.

VA in Pennsylvania and New Jersey

VA works in both states. PHFA and NJHMFA may allow a VA first mortgage on some agency products — confirm on the agency site. Closing customs still follow the state: title company in Pennsylvania, attorney in New Jersey.

• Pennsylvania mortgage hub
• New Jersey mortgage hub
• Request or learn about a COE