Does a VA loan require a down payment?

VA generally does not require a down payment when the borrower has sufficient entitlement and the transaction meets applicable requirements, although individual circumstances can affect the loan.

Can I use a VA loan more than once?

Yes. The VA home loan guaranty is a reusable benefit, subject to entitlement and eligibility requirements.

What is the VA funding fee?

The VA funding fee is a one-time fee that helps support the VA home-loan program. Certain eligible borrowers are exempt from paying it.

VA Home Loan Benefits for Florida Veterans

Q: Does a VA mortgage have PMI?

VA loans do not require monthly private mortgage insurance.

I regularly speak with veterans who either don't fully understand the benefit or have been given incorrect information about VA financing. Let's clear up some of the biggest questions. You can also review our detailed VA loan program page.

1. VA Financing Can Offer No Down Payment

The Department of Veterans Affairs does not generally require a down payment when sufficient entitlement is available and the transaction meets VA requirements.

That can allow an eligible veteran to finance a home without tying up a large portion of their savings in the down payment. You'll still have closing costs and other transaction expenses to consider, but seller concessions, lender credits or other permitted strategies may help with some of those costs.

2. VA Loans Don't Require Monthly PMI

This is a major benefit. Low-down-payment conventional loans often require private mortgage insurance. FHA loans generally include mortgage insurance. VA loans do not require monthly private mortgage insurance.

That can make a significant difference in the monthly payment. Use our mortgage calculator to compare VA vs. conventional payments side by side.

3. VA Interest Rates Can Be Very Competitive

VA-guaranteed loans often offer competitive interest rates because a portion of the loan is backed by the federal government. Your actual rate still depends on the market, lender pricing and your individual loan profile.

That's another reason I prefer comparing available VA options rather than assuming every lender will offer the same terms.

4. VA Limits Certain Closing Costs

VA guidelines restrict certain fees that can be charged to the veteran. There are still legitimate closing costs associated with purchasing and financing a home, but the VA program includes consumer protections regarding allowable charges.

5. The VA Benefit Can Be Used More Than Once

This surprises a lot of people. A VA home loan isn't necessarily a one-time benefit. Eligible veterans can potentially use VA financing multiple times. In some circumstances, a veteran may even have remaining entitlement available while another VA loan exists.

If you've used your VA benefit before, don't assume it's no longer available. Let's check your Certificate of Eligibility and entitlement.

6. Some Veterans Are Exempt From the VA Funding Fee

Many VA borrowers pay a one-time VA funding fee. The amount depends on the transaction and other factors. However, certain eligible veterans and surviving spouses may be exempt. If you qualify for an exemption, that can reduce the cost of the transaction significantly.

7. VA Loans Aren't Only for Perfect Credit

VA itself does not operate exactly like a conventional credit-scoring program. Individual lenders can establish underwriting requirements, and borrower credit still matters, but veterans shouldn't assume a past credit issue automatically eliminates VA financing.

As a mortgage broker, I can evaluate the actual situation and determine what options may be available.

8. You Can Use VA Financing for More Than a Traditional Purchase

VA programs can potentially help eligible borrowers:

Purchase a primary residence
Refinance an existing VA mortgage through an IRRRL
Complete certain cash-out refinances
Purchase certain eligible multi-unit properties when occupancy rules are met
Finance eligible construction transactions through participating lenders

Not every lender offers every VA product. That difference matters.

The VA Appraisal Isn't a Home Inspection

A VA appraisal evaluates the property for valuation and applicable VA property requirements. It should not be viewed as a substitute for an independent home inspection. I generally want buyers to understand the difference before they're under contract.

Don't Assume VA Financing Makes Your Offer Weak

There is still a perception among some sellers and agents that VA financing is more difficult. A properly structured, well-qualified VA transaction can be extremely strong.

Good communication is important. When I'm working with a VA buyer, I want the agents involved to understand the financing, the strength of the pre-approval and what they should expect during the transaction.

Use the Benefit You've Earned

If you're eligible for VA financing, compare it before automatically choosing another mortgage. There are situations where another loan can make sense. But VA should generally be part of the conversation.

Scott Kepler has been helping Florida veterans evaluate their VA eligibility and financing options since 2001. Also consider whether the Florida Hometown Heroes program may be available to you as an additional resource.

VA Home Loan Benefits Every Florida Veteran Should Know