20% planning comparison
$90,00020% of an illustrative $450,000 purchase.
VA Loans
Plan a home purchase or refinance using your earned VA benefit, with attention to eligibility, property approval and total cost.
Begin with eligibility and entitlement
Eligible veterans, service members and certain surviving spouses may use VA-backed financing. A Certificate of Eligibility documents benefit eligibility; it is not loan approval. The lender also reviews income, credit, debts and the property.
Eligible VA buyers may purchase with no down payment
Potential down payment with eligible VA financing
20
%
Eligible VA option
$00% of the same price, if the borrower and property qualify.
Plan beyond the down payment
+Closing costs, prepaid items, reserves where required, and monthly housing costs still matter.
Illustrative down-payment amounts only. The counter moves from 20% to a possible program minimum; it does not show a rate, discount or individual approval.
No down payment does not mean no cash to close. Entitlement, the appraised value, lender requirements and the transaction matter. We check your Certificate of Eligibility and build the complete purchase budget.
Smart home financing starts with strategy
Buying or refinancing? We compare options across our network of 150+ wholesale lenders, explain the trade-offs, and build a plan around your goals. Start with a pre-approval video conversation so you know what to expect before moving forward.
VA financing: the benefits and the checkpoints
| Term | Why it matters |
|---|---|
| Certificate of Eligibility | Documents service-based eligibility and entitlement. It is an important starting point—not a loan approval. |
| Entitlement | The available VA guaranty affects planning, especially when another VA loan is outstanding. Full entitlement removes a VA county loan limit, but lender and appraisal limits still apply. |
| Residual income | Money remaining after specified obligations. VA reviews it alongside credit and debt ratios. |
| Funding fee | Purchase fees vary by down payment and prior use; current standard tiers range from 1.25% to 3.3%. Applicable exemptions include qualifying service-connected disability circumstances and other VA categories. |
| Mortgage insurance & occupancy | VA-backed loans do not require monthly mortgage insurance. Purchase loans generally require intended personal occupancy, with permitted service-related exceptions. |
VA IRRRL: evaluate the refinance, not just the shortcut
Existing VA financing
IRRRLUsed to refinance an existing VA loan. It is not a cash-out path.
Seasoning
DatesAt least six consecutive monthly payments and 210 days after the first payment due date are key seasoning checkpoints.
Cost comparison
0.5%The standard IRRRL funding fee is 0.5%, unless exempt. Closing costs and the benefit/recoupment rules still matter.
An IRRRL may reduce the rate or improve payment stability by moving from adjustable to fixed financing. VA generally does not require a new appraisal or full income underwriting for the usual IRRRL, but lender requirements and situations requiring additional review can differ. Financing costs into the loan increases the balance; compare total costs and time to recover them.
Review VA’s IRRRL overview · VA seasoning guidance. Our team can compare your current VA loan with a refinance scenario.
VA: put the earned benefit in context
What is a VA loan?
A VA-backed home loan helps eligible service members, veterans and surviving spouses purchase or refinance a primary residence. No down payment may be needed when entitlement, price, value and lender requirements align, and VA loans do not require monthly private mortgage insurance.
VA does not set a universal minimum credit score; participating lenders apply their own requirements. Our team reviews the full financing plan, including the funding fee or exemption, closing costs and reserves. Use our VA Mortgage Calculator to explore a scenario.
Thank you for your service
We are honored to help eligible veterans, active-duty service members and surviving spouses use their home-loan benefits. Our team can help request your Certificate of Eligibility (COE) and review available entitlement, prior use and any applicable funding-fee exemption.
We will compare purchase or refinance choices and explain the cash you may need for closing costs, reserves or a purchase-price/appraisal gap. A no-down-payment benefit does not mean every transaction has no cash due at closing.
Benefits & Entitlements
Here are some of the eligible benefits as part of your Veterans Affairs Entitlement for your service:
- 100% Financing & No Down Payment Loans
- No Private Mortgage (PMI)
- No Penalties for Prepaying the Loan
- Lower FICO Credit Scores allowable
- Competitive Interest Rates
- Qualification follows VA and lender rules; our team compares the full scenario
- Eligible seller credits may help with closing costs within program limits
- Disabled Veterans may be eligible for a VA funding fee waiver saving thousands of dollars
- Some Colorado assistance programs may be paired with a VA loan when program and lender rules permit. Explore our Colorado down payment assistance guide and confirm eligible uses of the funds.
- IRRRL – Interest Rate Reduction Refinance Loan
- Is a streamlined refinance for veterans if you already have a VA-backed home loan to lower your monthly mortgage payment and get a lower interest rate.
Who is eligible for a VA loan?
Eligibility can include veterans, active-duty service members, certain National Guard and Reserve members, and eligible surviving spouses. Service requirements vary by service period and circumstances; a single day-count rule does not cover everyone.
Our team can help review your VA eligibility and Certificate of Eligibility. The COE establishes benefit eligibility; the lender also reviews credit, income, occupancy and the property.
Origin of the VA Home Loan
The Veteran Loan originated in 1944 through the Servicemen’s Readjustment Act; also know as the GI Bill. It was signed into law by President Franklin D. Roosevelt and was designed to provide Veterans with a federally-guaranteed home loan with no down payment.
The Veteran Administration provides insurance protection to lenders in the case of a loan default. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. You may also realize reduced closing costs and it always comes with no prepayment penalty.
Eligibility and entitlement
Begin with the Certificate of Eligibility and available entitlement. Start your financing plan →
Property and occupancy
Review occupancy plans, appraisal and property condition. Start your financing plan →
Complete cost comparison
Include closing costs and funding-fee treatment, not just the down payment. Start your financing plan →
Using VA financing more than once
The VA benefit may be reused. Entitlement restoration, existing VA loans and the new property need review. A service-related funding-fee exemption may apply to eligible borrowers; confirm the actual exemption rather than assume every veteran has it.
VA refinancing: two different questions
An Interest Rate Reduction Refinance Loan may serve eligible existing VA borrowers. A cash-out refinance follows different requirements. Compare the new payment, costs, term and required benefit before deciding. A lower payment with a longer term can still increase total interest.
Illustrative photograph via Pexels; resized. Source · Pexels License.
The right loan begins with your goals
Tell us how you plan to use the home, what monthly payment feels comfortable and how long you expect to keep the financing. We compare options across lenders, explain the costs and help you choose a strategy with a clear next step.
Our pre-approval video call gives you time to ask questions, understand the trade-offs and coordinate your financing before an offer or refinance decision.
Compare benefit and cost
Eligible VA loans may offer no down payment and do not require monthly mortgage insurance. A funding fee may apply unless the borrower qualifies for an exemption. A down payment, appraisal gap or other cash requirement can still arise in a specific transaction.
Use the benefit thoughtfully
Review entitlement, occupancy, the appraisal and cash to close before making an offer. For refinancing, compare closing costs, loan structure and the time needed to recover costs. Down payment assistance may be researched for eligible costs where the administrator permits the loan pairing.
Explore Mortgage Calculators
Compare purchase, refinance and affordability scenarios, then let our team help turn the estimate into a financing plan.
VA seller payments: two different categories
| Situation | Credit planning rule |
|---|---|
| Ordinary buyer closing costs and normal discount points | Not counted in the VA 4% concessions bucket; applicable fee rules still govern. |
| Additional seller concessions | Generally capped at 4% of VA-established reasonable value. |
| Example: $450,000 reasonable value | $18,000 additional-concession ceiling, separate from ordinary eligible costs. |
VA concessions can include items such as the funding fee, certain prepaid charges and permitted debt payoffs. Ordinary closing costs are treated differently. Our team checks the contract and VA categories before you negotiate the credit.
Seller credits are negotiated, not guaranteed. Eligible credits may cover approved closing costs, prepaid items or points; they do not replace a required down payment or become unrestricted cash back. A percentage ceiling is not a promise that every dollar can be used. Repair arrangements and price changes need documented approval, not an informal workaround.
Questions worth asking
No. It confirms benefit eligibility, while the lender separately evaluates the borrower, property and proposed loan.
It may be possible. Available or restored entitlement, existing VA obligations and the new transaction need review.
Review your contract options, reconsideration process if appropriate and any cash needed. Do not assume the lender will finance the difference.
An eligible transaction with sufficient entitlement may permit no down payment. A price above the appraised value or other transaction details can still require cash. We will map out the down payment, closing costs and available entitlement before you make an offer.
No. Certain borrowers are exempt. When a fee applies, its amount depends on the transaction and applicable VA rules. Our team will review your exemption status and show how the fee affects your financing.
More resources for your financing decision
Explore these related guides and resources from your original loan page.
What our clients say
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Plan your next move
Bring your goals and a property address if you have one. Paul Cederholm, mortgage expert and real estate financing strategist, can help you compare the financing choices and plan your next step.
Ready to begin? Start your loan application. Prefer a direct conversation? Call 303-931-6798.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation.