VA Home Loan

Understanding VA home loan benefits, eligibility, and the application process.

VA Home Loan Benefits (At a Glance)

Why the VA Home Loan is one of the most powerful benefits available to veterans:

•$0 down payment (in most cases) - No need to save for years
•No private mortgage insurance (PMI) - Save hundreds per month compared to conventional loans
•Competitive interest rates - Often lower than conventional mortgages
•Limited closing costs - VA restricts what lenders can charge
•Reusable benefit - Use it multiple times throughout your life
•Assumable loan - Huge resale advantage in rising rate environments

Service Requirements

You may qualify if you served:

•90 continuous days of active duty during wartime, OR
•181 days of active duty during peacetime, OR
•6 years in the Guard or Reserve, OR
•Any length of service if discharged for a service-connected disability

Some exceptions still qualify, such as hardship or medical discharge.

Common Misconceptions

“VA loans take longer to close”

→ False - Most close in 30-45 days, similar to conventional loans

“You can only use it once”

→ False - The benefit is reusable

“Sellers won't accept VA loans”

→ Mostly false - VA loans are competitive and widely accepted

“You need perfect credit”

→ No - VA sets no minimum credit score (lenders typically want 620+)

Surviving Spouses

You may be eligible if your spouse:

•Died on active duty, or
•Passed away from a service-connected condition, or
•Is missing in action or a prisoner of war

Remarriage may affect eligibility. Contact the VA for specific guidance.

Funding Fee Explained

The VA funding fee helps keep the program running without taxpayer burden. It's a one-time fee that can be paid upfront or rolled into your loan amount.

VA-backed Purchase and Construction Loans

Rates for Veterans, active-duty service members, and National Guard and Reserve members

Type of Use	Down Payment	Funding Fee
First use	Less than 5%	2.15%
First use	5% or more	1.5%
First use	10% or more	1.25%
After first use	Less than 5%	3.3%
After first use	5% or more	1.5%
After first use	10% or more	1.25%

VA-backed Cash-Out Refinancing Loans

First Use	After First Use
2.15%	3.3%

Note: Refinancing loan rates don't change based on down payment amount.

Native American Direct Loan (NADL)

Type of Use	Funding Fee
Purchase	1.25%
Refinance	0.5%

💡 Exemption for Service-Connected Disability

Veterans receiving VA compensation for a service-connected disability are exempt from the funding fee. Surviving spouses receiving DIC are also exempt.

For complete funding fee details, visit: VA Funding Fee & Closing Costs

Step-by-Step VA Home Loan Process

1. Confirm eligibility

2. Request Certificate of Eligibility (COE)

3. Choose VA-approved lender

4. Get pre-approved

5. Find a home

6. VA appraisal & underwriting

7. Close & move in

Texas-Specific Resources

Texas Veterans Land Board (VLB) Loans

Additional state-level benefits for Texas veterans