What is a VA loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and issued by private lenders like HomeFi Mortgage. Because the VA backs a portion of the loan, lenders can offer terms that are hard to match anywhere else in the mortgage world.
It's not a loan from the government -- it's a loan from a lender, with the VA standing behind it. That guarantee is what unlocks the benefits below.
Why veterans and service members chose it.
No down payment
Finance up to 100% of the purchase price in most cases.​
No monthly mortgage insurance
Skip the PMI that conventional and FHA loans often require.
Competitive rates
VA-backed loans often price lower than conventional financing.
Limits on closing costs
The VA restricts which fees a lender can charge you.
Reusable benefit
Use it again for your next home if you have remaining entitlement.
Flexible credit standards
No VA-set minimum score, and more room to work with than many conventional guidelines.
Top 10 questions about VA Loans
1. What is a VA loan?
A mortgage backed by the Department of Veterans Affairs, available to eligible veterans, active-duty service members, and some surviving spouses. The VA guarantee is what allows lenders to offer no down payment and no PMI.
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2. Who is eligible for a VA loan?
Eligibility depends on length of service, duty status, and discharge character. Active-duty members, veterans meeting minimum service requirements, National Guard and Reserve members, and certain surviving spouses can qualify. Your Certificate of Eligibility (COE) confirms it.
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3. Do I need a down payment for a VA loan?
In most cases, no. Qualified borrowers can finance up to 100% of the purchase price -- one of the biggest advantages over conventional or FHA financing.
4. What is the VA funding fee?
A one-time fee that helps sustain the program for future borrowers. It varies by down payment amount, service history, and whether it's your first use of the benefit. Some veterans, including those with service-connected disabilities, are exempt entirely.
5. Can I use a VA loan more than once?
Yes. As long as you have remaining entitlement, you can use your VA benefit again. In many cases, full entitlement is restored once a previous VA loan is paid off or sold.
6. What credit score do I need for a VA loan?
The VA doesn't set a minimum, but lenders do. Many borrowers are approved with scores in the mid-600s, and there's often more flexibility than with conventional guidelines when other factors are strong.
7. Can I use a VA loan to buy an investment property?
VA loans are meant for primary residences. That said, you can buy a property with up to four units and live in one while renting out the others.
8. What is VA loan entitlement?
Entitlement is the dollar amount the VA guarantees on your behalf -- it's what allows a no-down-payment purchase. Your loan officer can pull your COE to confirm exactly how much you have available.
9. Are there closing costs with a VA loan?
Yes -- appraisal, title, and origination fees still apply. The VA limits which fees a lender can charge, and sellers can often cover some or all of your closing costs through negotiated concessions.
10. How is a VA loan different from a conventional loan?
Mainly the down payment and mortgage insurance. VA loans typically require neither. Conventional loans usually require a down payment and PMI if you put down less than 20%.