How To Use Your VA Home Loan Benefits

What Is A VA Loan? A Quick Overview

A VA Loan is a mortgage backed by the US Department of Veterans Affairs (VA), designed to make homeownership more accessible for those who have served in the military. Unlike most other loan programs, VA Loans offer 100% financing, meaning no down payment is required – and there’s no monthly mortgage insurance (PMI). This translates to lower upfront costs and more affordable monthly payments for eligible buyers.

VA Loans are issued by private lenders (like us at The Yi Team), but guaranteed by the federal government. That guarantee allows lenders to offer more flexible terms, even for borrowers who may not have perfect credit or high savings.

Unique Benefits of VA Loans for Homebuyers

While many loan programs help buyers get into homes, VA Loans are uniquely generous in their terms:

• 0% Down Payment Required – Buyers don’t need to bring a down payment – this can make homeownership possible years earlier than other loan types.
• No Monthly Mortgage Insurance – Unlike FHA or low-down conventional loans, VA Loans don’t require mortgage insurance, saving borrowers hundreds each month.
• Competitive Interest Rates – VA-backed loans often carry lower rates than conventional loans, offering more affordability over time.
• Limits on Buyer Costs – The VA limits the types of fees a veteran can be charged, protecting the borrower from unnecessary expenses.
• Assumability – a VA Home Loan is assumable, meaning a qualified buyer can take over the loan – and its low rate – in the future. That’s a huge advantage if rates rise.

When structured properly, VA offers a much stronger offer than many buyers – and even some agents – realize.

John Walowac, The Yi Team

Who Qualifies for a VA Home Loan?

Eligibility for VA Loans is based on military service. Ask me about the specifics, but here is a simplified breakdown:

• Veterans who served active duty with an honorable discharge
• Active-duty service members with 90+ days of continuous service
• National Guard & Reservists with at least 6 years of service or 90 days active duty
• Surviving spouses of veterans who meet specific criteria

Key Documents Needed:

• DD-214 for veterans
• Statement of service for active duty personnel
• COE – Certificate of Eligibility: this is required and can often be pulled instantly by your lender

Realtors, if your homebuyer isn’t sure whether they qualify, I can help confirm eligibility quickly.

How To Qualify for a VA Loan

Even though VA Loans have flexible guidelines, buyers still need to meet lender-specific criteria, including the following:

Credit Score

Most lenders look for a 620+ credit score, but exceptions exist based on other strengths in the file.

Stable Income & Employment

Landers review job history, paystubs, and tax returns to verify income. VA also has a unique residual income requirement, ensuring borrowers have enough cash left over after expenses to live comfortably.

Primary Residence Requirement

VA Loans are for owner-occupied homes only – they can’t be used to buy an investment property or vacation home. (Ask me about this for refinancing).

VA Appraisal & Property Guidelines

VA requires an appraisal to verify the home’s value and basic livability. It’s not overly strict – it’s just to protect the veteran from unsafe and overpriced homes.

What Real Estate Agents Should Know About VA Loans

Too often, VA buyers get overlooked in multiple-offer situations – because agents don’t fully understand the program. Here are four ways you can advocate for your VA clients:

1. VA Offers Are Strong

These buyers are often highly qualified and loyal clients. Their “0% down” doesn’t reflect low financial strength, it reflects their earned benefit.

2. Sellers Can Cover Closing Costs

VA allows seller concessions to cover closing costs, helping buyers bring less to the table and improving offer strength.

3. Use a VA-Savvy Lender

The process moves smoothly when you work with someone who knows the guidelines. The Yi Team has deep experience with VA loans and can handle them as fast – or faster – than conventional loans.

4. Check VA Condo Approval

Not all condos are VA-approved. If you’re showing townhomes or condos, confirm eligibilty in advance to avoid suprises.

The Question About Buydowns

So you might be asking yourself if you can use a 2-1 buydown or 3-1 buydown in combination with your VA home loan benefit. This is dependent on a few factors, that will change from time to time. Give us a call so we can answer that question whether you’re a realtor trying to offer options, or a veteran buying a home. Not sure what a 2-1 buydown is? I talk about how mortgage buydowns can save you thousands in another podcast.

Common VA Loan Myths – Debunked

Let’s clear up a few misconception that often hold agents (and buyers) back:

MYTH “VA loans take forever to close.”

FACT With the right lender, VA loan close just as fast as conventional loans

MYTH “VA appraisals are too tough.”

FACT VA appraisals follow standard guidelines. They designed to protect the veteran, not complicate the deal.

MYTH “Sellers lose money on VA deals.”

FACT All fees are negotiable. With proper structure, VA offers are just as competitive.

I’ve worked with VA buyers who closed faster and were better prepared than any conventional deal I’ve done. Don’t count them out.”

Jose Barreto, Spring Hill Real Estate

Final Thoughts From The DMV Roundtable Podcast

Both Jose and John agree: VA Loans are a powerful tool – and more agents should be talking about them. If you’re an agent working with a veteran, don’t make assumptions. Get educated, partner with an experienced VA lender, and present your client as the strong buyer they are.

And if you’re a veteran or active-duty service member, know this: you’ve earned this benefit. Use it.

Let’s Help More Veterans Become Home Owners

Ready to run a VA Loan scenario for your next home buyer? Want a co-branded flyer or one-pager to help educate your seller about accepting VA offers? Let’s talk!