Who this is for
VA loans are for active-duty service members, veterans, National Guard and Reserve members with qualifying service, and certain surviving spouses. If you have a Certificate of Eligibility (COE) or qualify for one, VA is usually the first loan to compare for a primary residence.
No monthly mortgage insurance, and the loan is assumable by a qualified buyer - which can be a selling point later.
What makes VA different
- Low cash to close. VA can finance a primary home with a low down payment for eligible borrowers, subject to the appraisal and the lender's approval. What applies depends on your entitlement.
- No monthly mortgage insurance. Most low down payment loans charge mortgage insurance. VA doesn't.
- Funding fee instead. VA charges a one-time funding fee, set by law as a percentage of the loan. It depends on whether it's your first use and on your down payment, and it is usually financed into the loan. Some borrowers are exempt (see below).
- Assumable. A creditworthy buyer approved by the loan servicer can take over your existing VA loan and its terms. Your entitlement stays tied to that loan unless the buyer is an eligible veteran who substitutes their own.
- Streamline refinance (IRRRL). An existing VA loan can be refinanced into a new VA loan with reduced paperwork and usually no appraisal. VA requires seasoning (210 days and 6 payments) and a net tangible benefit, and lenders often add their own credit and income checks.
Qualifying basics
- Service requirements: Generally 90 consecutive days of active service in wartime, 181 days in peacetime, or 6 years in the National Guard or Reserve (or 90 days of qualifying active-duty service). Specific rules depend on era and component.
- Certificate of Eligibility (COE): The lender can usually get it online through VA's system with your DD-214 (or a statement of service if you're still serving). You can also request it yourself on VA.gov.
- Credit score: VA sets no minimum score. Lenders set their own, so the lender choice matters.
- Debt-to-income: VA's benchmark is 41%. Above that, VA looks at residual income (the cash left after major monthly obligations), and a strong residual can support a higher ratio.
- Occupancy: Must be your primary residence, generally within 60 days of closing. If you're on active duty and deployed, your spouse (or in some cases a dependent child) can satisfy occupancy.
- Loan limits: No VA loan limit if you have full entitlement. With partial entitlement (for example, an existing VA loan still open), the county conforming limit affects how much VA's guaranty covers, and a down payment may be needed above that.
Who doesn't pay the funding fee. Veterans receiving (or eligible to receive) VA compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty service members who received a Purple Heart are exempt. For everyone else the fee depends on first or subsequent use and on the down payment; current figures are on VA.gov.
Florida-specific notes
Florida has a large veteran population and a heavy active-duty footprint - MacDill AFB (Tampa), Patrick Space Force Base (Brevard), Eglin AFB and Hurlburt Field (Okaloosa), NAS Pensacola, NAS Jacksonville and Naval Station Mayport, plus Reserve and Guard installations. A few Florida-specific things to know:
- VA appraisals can stall on older Florida homes. The VA appraiser checks Minimum Property Requirements (MPRs) - a sound roof, working systems, defective paint on pre-1978 homes, safety hazards and wood-destroying insect damage. Older Florida housing stock often has issues that have to be repaired before closing.
- Roof condition is a common issue. VA's MPRs require a roof that keeps moisture out and has reasonable remaining life. Separately, many Florida insurers won't write a policy on an older roof. If the roof is questionable, a repair or replacement may be needed before closing - usually negotiated with the seller.
- Wind mitigation matters for insurance. Hurricane straps, opening protection and roof-deck attachment all affect your homeowners insurance premium, which affects what you qualify for. Get a wind mitigation inspection early.
- Property tax exemptions for veterans. Florida offers several: a $5,000 exemption for veterans with a service-connected disability of 10% or more (F.S. 196.24), a full homestead exemption for a permanent and total service-connected disability (F.S. 196.081), and a homestead discount for veterans 65+ with a combat-related disability (F.S. 196.082). Apply with your county property appraiser; the deadline is generally March 1. Exemptions change your tax escrow.
- Tidewater process. If the VA appraiser expects the value to come in below the sales price, the appraiser notifies the lender, and the lender's side has 2 business days to send comparable sales that support the price. Have your agent ready to supply comps quickly.
Common VA scenarios
First-Time Use
Buying primary, full entitlement
Most common. Funding fee usually financed in (unless you're exempt). VA has no income limits. Getting the COE early keeps things moving.
Already Used VA
Second-tier entitlement
If you have an existing VA loan, or used entitlement on a loan that wasn't repaid, you may still have remaining entitlement for another VA loan. The math is more involved and depends on the county limit.
Multi-Unit
2-4 unit, owner-occupied
VA allows up to 4 units if you live in one. Documented rental income from the other units can count toward qualifying under VA and lender rules, often with reserve requirements.
Refinance
VA Streamline (IRRRL)
Refinance an existing VA loan with reduced documentation and usually no appraisal. It needs 210 days and 6 payments of seasoning and a net tangible benefit, and a reduced funding fee applies unless you're exempt.
When VA isn't the move
- Investment property purchase - VA is owner-occupied only. DSCR or conventional investment instead.
- Second home / vacation home - also not allowed under VA. Conventional second-home financing is the right tool.
- Buying a property that won't pass MPRs and seller won't fix - sometimes a renovation loan (FHA 203(k) or Fannie Mae HomeStyle) makes more sense than fighting a VA appraisal.
- You're not exempt from the funding fee and you're making a large down payment - conventional may be worth comparing side by side.
FAQ
How do I get my Certificate of Eligibility (COE)?
With your DD-214 (or a current statement of service if you're on active duty), the lender can usually request the COE online through VA's system. You can also apply on VA.gov. The COE shows your entitlement and any restrictions.
Can I use a VA loan more than once?
Yes. Entitlement can be restored when you sell a VA-financed home and the loan is paid off. VA also allows a one-time restoration if you pay off the loan and keep the home. Service members relocating on orders sometimes use remaining entitlement to buy at a new duty station while keeping a previous VA-financed home.
Are VA loans really assumable?
Yes. A buyer can take over your existing VA loan and its terms if the servicer approves their credit and income. The buyer doesn't have to be a veteran. But unless the buyer is an eligible veteran who substitutes their entitlement, your entitlement stays tied to that loan until it's paid off, which can limit your next VA purchase.
Will sellers reject my VA offer?
Sometimes. Sellers worry about the appraisal and property-condition requirements. What helps in competitive markets: a solid pre-approval, an experienced real estate agent who can explain the process to the listing agent, and sometimes flexibility on contingencies. It's often an education problem more than a mortgage problem.
Can my surviving spouse use my VA benefit?
In specific cases, yes. Generally, the spouse of a veteran who died in service or from a service-connected disability is eligible if they haven't remarried, or remarried on or after age 57. Spouses of service members who are missing in action or a prisoner of war can also qualify. Surviving spouses who receive DIC are exempt from the funding fee.