| Service Type | Requirement |
|---|---|
| Active Duty | 90 days of service + approval to move off base |
| Veteran | Honorable discharge · lifetime benefit |
| Guard / Reserve | 90 days continuous active service, TDY/deployment, Title 10 orders, OR 6 years total service |
| Surviving Spouse | May qualify — confirm with lender |
| VA Disability Rating | Counts as qualifying income AND waives the funding fee entirely |
Active duty: lenders gross up your BAH by 25% for affordability — your buying power is likely higher than you expect. Need 1 year retainability to use the loan. Guard/Reserve: full-time civilian employment (40 hrs/week) also required.
The most common question I get: "Should I put money down to lower my payment?" Short answer: put that money toward buying down your interest rate instead.
| Scenario | What You Do With $7,500 | Rate | Monthly Payment |
|---|---|---|---|
| Nothing down | Nothing | 6.5% | $1,814/mo |
| 3% down | Down payment | 6.5% | $1,766/mo |
| 0% down + rate buy | Rate buy-down | 5.5% | $1,650/mo ✓ Best |
| Purchase — First Use | Down Payment | Fee |
|---|---|---|
| First Use | Less than 5% | 2.15% |
| First Use | 5–9.9% | 1.5% |
| First Use | 10%+ | 1.25% |
| Subsequent Use | Less than 5% | 3.3% |
| IRRRL (streamline refi) | — | 0.5% |
| Loan Assumption | — | 0.5% |
Waived entirely if you have a VA disability rating of 10% or higher — even if your claim is still in progress. Once approved, the fee is reimbursed.
| Cost | Estimate |
|---|---|
| Inspection + Appraisal | ~$1,000 combined |
| Earnest Money Deposit | ~1% of purchase price or less (refundable) |
| Closing Costs | 2.5–3.5% of loan amount |
| VA Funding Fee | 1.25–2.15% first use (rolls into loan) |
The move: Ask the seller to cover your closing costs. They can pay up to 4% of the purchase price. Anything above 4% goes toward a rate buy-down. Seller concessions can also pay off personal debt — credit cards, car loans, RVs. This is one of the most underused benefits in the entire program.
Your VA benefit never expires. Full entitlement restores when your prior VA loan is paid off and the property is sold. You can also have multiple VA loans open at the same time, subject to your county's loan cap.
PCS exception: If you receive orders, you may be able to rent your current home and buy again with VA before the standard one-year mark. Talk to a VA-approved lender — this is one of the most underused exceptions in the program.
Buy a primary residence with your VA loan. Live there one year or until PCS orders. Rent it out — hire a property manager or list on Zillow. Buy your next home with your VA loan. Repeat. Every house becomes a rental. Every rental builds equity. You keep farming.
VA loans allow purchases up to 4-unit properties — as long as you live in one unit. Up to 75% of rental income counts toward your qualification (6 months cash reserves required). Tenants cover most or all of the mortgage while you build equity. For single service members: roommates cover the payment, you own the asset.
After 3–5 years you may have $50–100K in equity. A HELOC gives you a line of credit to use as a down payment on a rental property. A cash-out refi lets you pull equity if rates drop and roll it into your next investment. Use intentionally — a HELOC is a second mortgage and must be repaid.
99% of VA loans are assumable. When you sell, any buyer — not just veterans — can take over your loan balance and your locked-in interest rate. If you bought at 3% and the market is at 7%, your rate becomes a major selling advantage. Buyers will pay more for your home just to take over that payment.
Gap between sales price and loan balance must be covered with cash or secondary financing. Timeline: 2–6 months to process.
Finance land and construction together — single closing, no payments while your home is being built. Can build: single family, barndominium, multifamily (up to 4 units), tiny home, manufactured home, ADUs, garages, pools. Builder must be VA-approved. Typically requires 620–640+ credit score. Budget for architectural plans and closing costs upfront.
Finance a home and its repairs in a single loan — great for properties that need work. Repair cap typically $50–75K. Eligible: kitchen, bath, HVAC, roof, flooring, mold remediation, accessibility upgrades. All repairs completed within 120 days by a VA-approved contractor. Home must appraise at purchase price + repair cost.
When rates drop, the IRRRL is your fast lane. No appraisal, no credit check, no income verification. Roll closing costs into the loan. Must have made 6 on-time payments first. Payment must decrease. Rule of thumb: a 1%+ rate drop is worth it. Can be done unlimited times.