VA Loans

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses. VA loans are what our team does. Debbie Haberny leads Mission One Team from Charleston, South Carolina, and we are licensed in Florida, Georgia, South Carolina, Texas and Virginia.

What Is a VA Loan?

A VA loan is a mortgage backed by a Department of Veterans Affairs guaranty. The guaranty lets eligible borrowers buy a home with no down payment and without private mortgage insurance, as long as the price does not exceed the appraised value and you meet the credit and income standards for the loan.

• What you can buy: a single-family home or a home of up to four units, a condo in a VA-approved project, a manufactured home, or new construction. You can also buy a home and improve it, or refinance one you own.
• No prepayment penalty: you can pay the loan off early at no charge.

Who Qualifies for a VA Loan?

You qualify through your service. Current service members generally need 90 continuous days of active duty. Most veterans who served since August 1990 need 24 continuous months or their full activation period. Guard and Reserve members generally need six creditable years or 90 days of qualifying active-duty service. Some surviving spouses qualify as well.

• Peacetime service: typically 181 continuous days.
• Vietnam, Korea and World War II service: at least 90 total days.
• Surviving spouses: you may qualify if you receive or are eligible for certain VA Dependency and Indemnity Compensation, or you are the spouse of a service member who is missing in action or a prisoner of war.
• Beyond service: you also need to meet credit and income standards for the loan, and we review those with you.

How Do You Get a Certificate of Eligibility?

A Certificate of Eligibility, or COE, is VA’s proof that you qualify. You can request one online at VA.gov, by mailing VA Form 26-1880, or through us. We can usually request it for you through VA’s lender system, often before you start house hunting.

• Veterans: a copy of your discharge papers (DD214).
• Active-duty service members: a signed statement of service from your commander.
• Guard and Reserve members: documents that show your activation or years of service.
• Surviving spouses: the veteran’s discharge papers if available, plus VA forms that depend on your situation.

How Much Can You Borrow With a VA Loan?

If you have full entitlement, VA sets no loan limit. Since January 1, 2020, a borrower with full entitlement can buy with no down payment at any price they qualify for and the appraisal supports. If you already use entitlement on another VA loan, a limit applies to the part VA will guarantee.

• Full entitlement: your COE shows basic entitlement of $36,000 and no entitlement in use.
• Partial entitlement: your remaining entitlement is 25% of your county’s loan limit minus the entitlement already in use. Your entitlement plus any down payment generally needs to equal at least 25% of the loan.
• Our VA Entitlement calculator on the Tools page shows your remaining entitlement.

What Is the VA Funding Fee?

The VA funding fee is a one-time charge that helps cover the program’s cost to taxpayers. On a first-use purchase with less than 5% down it is 2.15% of the loan, falling to 1.5% with 5% down and 1.25% with 10% down. You can finance it into the loan.

• Purchase, first use: 2.15% with less than 5% down, 1.5% with 5% or more, 1.25% with 10% or more.
• Purchase, subsequent use: 3.3% with less than 5% down, 1.5% with 5% or more, 1.25% with 10% or more.
• Cash-out refinance: 2.15% on first use, 3.3% on subsequent use.
• IRRRL refinance and loan assumptions: 0.5%. Manufactured home loans: 1%.
• Use our VA Funding Fee calculator on the Tools page for your own numbers.

Who Does Not Pay the VA Funding Fee?

Veterans who receive VA disability compensation do not pay it, and neither do veterans who would receive compensation but get retirement or active-service pay instead. Surviving spouses who receive Dependency and Indemnity Compensation are exempt, as are service members with a pre-discharge disability rating. A Purple Heart recipient who shows proof by closing is exempt too.

What Closing Costs Come With a VA Loan?

VA limits what you can be charged and who can pay it. The funding fee is the only cost you can finance in a purchase loan. A flat origination fee cannot exceed 1% of the loan amount, and seller concessions are capped at 4% of the home’s reasonable value. Everything else is paid at closing.

• Who can pay: the seller or another party can pay fees and charges for you, within VA’s limits.
• Not rolled in: appraisal, title, taxes, prepaid items and the origination fee are paid at closing, not added to a purchase loan.

What Does the Home Have to Meet?

You must live in the home as your primary residence, and VA’s Lender’s Handbook treats that as moving in within 60 days after closing. A VA-approved appraiser also sets the home’s value and checks it against VA’s minimum property requirements. Your real estate agent should put VA’s escape clause in the contract.

• More than 60 days: allowed when you certify a specific move-in date tied to a future event, but not beyond 12 months after closing.
• Active duty: a spouse or dependent child living in the home can meet the occupancy requirement.
• Escape clause: you can walk away without losing your earnest money if the price is higher than VA’s reasonable value.
• A low appraisal: you can ask for reconsideration, renegotiate the price, or pay the difference.

Can You Use a VA Loan More Than Once?

Yes. The VA home loan benefit lasts for life and can be used many times. You can restore full entitlement after you sell the home and pay off the loan, or when another eligible veteran takes over the loan with their own entitlement. You can also restore it once if you repay the loan but keep the home.

• Keeping the first home: you can buy another with your remaining entitlement, if you have any.

How Does a VA IRRRL Refinance Work?

An IRRRL is VA’s streamlined refinance for homeowners who already have a VA loan, meant to reduce your monthly payment or make it more stable. The funding fee is 0.5%. You certify that you live in the home or used to, and the loan being refinanced must be seasoned and the costs recouped within 36 months.

• Seasoned: the first payment on the loan you are refinancing was due at least 210 days before closing, and you have made six consecutive payments.
• Recouped: the fees and closing costs must be scheduled to be earned back within 36 months of closing.
• Other options: a VA cash-out refinance can also turn a non-VA loan into a VA loan. See Refinance a Loan.

How We Help

Debbie Haberny is our broker owner and a Vetted VA Professional, and we work from the VA Lender’s Handbook. We request your COE, explain your entitlement and funding fee, and build the plan with you and your real estate agent so the appraisal, the escape clause and the occupancy date are handled before you make an offer.

• Run the numbers first with the VA Funding Fee, VA Entitlement and BAH Housing Budget calculators on our Tools page.
• When you are ready to talk, Book a Discovery Call.

Frequently Asked Questions