You've Earned Your VA Benefits. See What They Can Do for You.

The VA home loan is one of the best benefits this country gives the people who served it. Yet plenty of veterans either don't know they have it, or assume they've already used it up.

This page explains how VA loans work in plain English: who may qualify, what the Certificate of Eligibility is, what the funding fee is and who skips it, how buying and refinancing work, and where people get tripped up.

One note first: ZYNG Mortgage isn't affiliated with the U.S. Department of Veterans Affairs. The VA runs the program. Private lenders make the loans. As a mortgage broker, we help you find a lender and loan that fit.

The short version

• A VA loan is a mortgage for eligible veterans, service members, and some surviving spouses. Private lenders make it under rules the VA sets.
• VA loans offer 0% down payment options: Eligible borrowers with full VA entitlement can purchase a home with no down payment, regardless of loan amount, subject to lender approval and appraisal requirements.
• There's no monthly mortgage insurance on a VA loan.
• Only the VA decides eligibility. It does that with a Certificate of Eligibility (COE). Our VA eligibility check is a quick first look, not a COE.
• Most VA loans have a one-time funding fee. Some borrowers are exempt, including veterans who receive VA disability compensation and certain surviving spouses.
• You still have to qualify. Income, credit, and the home itself all matter.

Who may be eligible

The VA decides eligibility based on service history. In general, these groups may be eligible:

• Veterans who meet the VA's minimum service requirements.
• Active-duty service members, after a minimum period of service.
• Members of the National Guard and Reserve, based on years of service or qualifying active-duty time.
• Some surviving spouses of service members or veterans who died in service or from a service-connected disability, among other cases.

Service requirements depend on when and how you served, and the rules have changed over the years. That's exactly why the VA, not a lender and not a website, makes the call.

The Certificate of Eligibility

The Certificate of Eligibility, or COE, is the VA's confirmation that you're eligible for the home loan benefit and how much entitlement you have.

You can get a COE a few ways:

• Through a lender, who can often request it online in minutes.
• Through the VA's website.
• By mail, with the VA's request form.

Our eligibility check is not a COE. It's a short set of questions to help you see whether VA financing may fit your plans. It doesn't decide eligibility. When you're ready, we'll help you request the actual certificate. Start the VA eligibility check.

What "entitlement" means

Entitlement is the part of the loan the VA promises to back for the lender. That backing, That backing, called the VA guaranty, is what helps eligible borrowers purchase a home with no down payment and no monthly mortgage insurance.

Here's what matters for you:

• If you have full entitlement, for example you've never used your benefit, or you used it and paid that loan off and sold the home, there's generally no VA loan limit for loans closed since 2020. You still need to qualify for the payment.
• If part of your entitlement is tied up in another VA loan you still have, county limits come back into play, and a down payment may be needed on a larger purchase.
• Entitlement can often be restored after you sell and pay off a VA loan, and in some cases you can restore it one time without selling.

A lot of veterans think the VA loan is a one-time benefit. It isn't. You can use it again.

The VA funding fee

Most VA loans include a one-time VA funding fee, paid to the VA. It helps lower the program's cost to taxpayers, since VA loans allow eligible borrowers to purchase a home with no down payment and no monthly mortgage insurance.

How much it is depends on a few things:

• Whether it's a purchase, a cash-out refinance, or a rate reduction refinance.
• How much you put down.
• Whether it's your first time using the benefit.

You can usually roll the fee into the loan instead of paying it in cash. We'll show you the exact amount on your Loan Estimate. The current fee schedule comes from the VA.

Who doesn't pay the funding fee

You may be exempt if you:

• Receive VA compensation for a service-connected disability.
• Are eligible for that compensation but receive retirement or active-duty pay instead.
• Are a surviving spouse receiving Dependency and Indemnity Compensation.
• Are a service member on active duty who received the Purple Heart.

Your COE generally shows whether you're exempt. If you think you should be and it doesn't say so, ask. It's worth getting right.

Buying a home with a VA loan

A VA purchase works a lot like any other purchase, with a few differences.

1. Check your eligibility and get your COE. We can request it for you.
2. Get your numbers. We review your income, credit, and debts, and show you your buying power. See My Buying Power.
3. Shop and make an offer. Your agent writes a contract that fits a VA loan.
4. VA appraisal. A VA appraiser checks the value and that the home meets the VA's minimum property requirements: safe, sound, and sanitary. If repairs are needed, they're usually handled before closing.
5. Underwriting. The lender reviews your file, including the VA's residual income guideline, which looks at what's left each month after your major bills.
6. Closing. You sign, and the home is yours.

A few things to know:

• You must plan to live in the home as your primary residence. VA loans aren't for investment property.
• Sellers can pay some of your costs. The VA allows seller concessions within its limits.
• The VA limits which closing costs you can be charged. That's a protection most loans don't have.

For the bigger picture on buying, see Buy a Home.

Refinancing with VA

There are two common VA refinances, and we offer both. We also offer the VA energy efficient mortgage, which adds the cost of certain energy improvements to your loan.

• Interest Rate Reduction Refinance Loan (IRRRL). For homeowners who already have a VA loan. It's built to lower your rate or move from an adjustable to a fixed rate, usually with less paperwork. Our VA lenders don't require an appraisal on an IRRRL.
• VA cash-out refinance. Lets eligible borrowers refinance any type of loan into a VA loan and take cash out, within VA limits.

See Refinance for how refinancing works in general.

Where people get tripped up

• Thinking the benefit is one and done. It isn't. Entitlement can be reused and often restored.
• Missing a funding fee exemption. If you receive disability compensation, make sure your COE reflects it.
• Being surprised by appraisal repairs. The VA appraisal checks condition, not just value. Older homes sometimes need small fixes before closing.
• Assuming VA can't compete. In many markets VA offers are strong. A good agent who knows VA helps.
• Confusing our eligibility check with a COE. Only the VA decides.

VA loans and other options

A VA loan is often a great fit, but not always the only one. Depending on your situation, a conventional loan, an FHA loan, or for homeowners 62 and older, a reverse mortgage may be worth comparing. As a broker, we can lay them side by side.

Common questions

Who decides if I'm eligible for a VA loan?

Only the VA, through a Certificate of Eligibility. Our eligibility check helps you see whether VA may fit, but it doesn't decide eligibility.

Do VA loans require a down payment?

No. One of the biggest benefits of a VA loan is the ability to buy a home with 0% down, as long as you qualify and have sufficient VA loan entitlement. If you have full entitlement, there's no VA-imposed loan limit, although lender approval is still required.

A down payment may be necessary if you've already used some of your VA entitlement or if the home's purchase price exceeds its appraised value.

Do VA loans have mortgage insurance?

No monthly mortgage insurance. Most VA loans do have the one-time funding fee, unless you're exempt.

Can I use my VA loan more than once?

Yes. You can use the benefit again, and entitlement can often be restored after you sell and pay off a VA loan.

Can a surviving spouse get a VA loan?

Some surviving spouses can. Eligibility depends on the circumstances of the service member's death or disability and other rules. The VA decides.

Can I buy a condo with a VA loan?

Generally yes, if the condo project is approved by the VA. We'll check before you make an offer.

Can someone else take over my VA loan?

VA loans can be assumed by a qualified buyer, with lender and VA approval. How that affects your entitlement depends on who assumes it.

Can I use a VA loan for a rental property?

No. You must intend to live in the home as your primary residence. For rentals, see Investment Property and DSCR Loans.

Next step

Start with the VA eligibility check, or call us at 530-888-6000. We'll help you request your Certificate of Eligibility, go over your numbers, and compare VA with your other options. You can also get a rate quote.

Sources

• U.S. Department of Veterans Affairs, VA Home Loans: va.gov
• VA, Eligibility for a VA home loan: va.gov
• VA, Funding fee and closing costs: va.gov
• VA Lender's Handbook, VA Pamphlet 26-7: benefits.va.gov
• 38 U.S.C. 3729, Loan fee: law.cornell.edu
• Consumer Financial Protection Bureau, Buying a house: consumerfinance.gov