VA Loan: A mortgage backed by the U.S. Department of Veterans Affairs, available to eligible service members, veterans, reservists, and surviving spouses. Zero down payment, no mortgage insurance, competitive rates, and the benefit can be reused for life. Daryn Fillis is VA-approved through NEO Home Loans.
Five things VA loans do that no other mortgage does.
Zero down payment
Up to the conforming loan limit, and beyond it in many cases. The benefit alone is worth tens of thousands of dollars compared to conventional loans that require 5% to 20% down.
No PMI ever
Conventional low-down loans charge $200 to $400 a month in private mortgage insurance. VA loans charge zero. Over a decade that's $24,000 to $48,000 you keep instead of pay.
Competitive interest rates
VA loans typically price below conventional rates. The government backing reduces the lender's risk, and that savings gets passed to you on the rate sheet.
Sellers can cover all closing costs
A VA buyer can structure an offer where the seller pays every dollar of closing costs and prepaids. Combined with zero down, this means buyers can close on a home with truly minimal out-of-pocket cost.
The benefit is yours for life
Your entitlement renews when a VA loan is paid off, meaning you can use the benefit again on your next home. In some cases you can even use it on two properties simultaneously through second-tier entitlement. Most lenders never explain this to their clients.
More people qualify for VA loans than realize they do.
VA loan eligibility extends well beyond active duty service members. If any of the following apply to you, your spouse, or your parent, the benefit may be available:
Eligibility is confirmed through the Certificate of Eligibility (COE). Most lenders can pull yours on your behalf in minutes. If you don't know whether you qualify, that's the first call to make.
Most lenders treat VA loans like an inconvenience. I treat them like the gift they are.
VA buyers come to me regularly after being told they need a down payment, that their disability income doesn't count, that their certificate of eligibility is "too complicated," or that closing costs will run them thousands. None of that is necessarily true.
Most of those conversations end the same way: the borrower thought their benefit was a backup plan. It was the right plan from the start.
The VA loan is one of the most powerful loans in housing — when the lender knows how to use it. Zero down payment. No PMI ever. Competitive interest rates. The seller can pay all your closing costs. Your full entitlement stays with you for life.
Most lenders treat VA loans like an inconvenience. I treat them like the gift they are.
Five things lenders say about VA loans that aren't true.
"VA loans are slow and complicated. We can close faster with conventional."
VA loans close in the same timeframe as conventional loans when the lender knows the program. The complexity is on the lender's side, not yours.
"You'll need a down payment to be competitive."
A fully underwritten VA pre-approval competes successfully against cash and conventional offers when the listing agent understands what they're looking at. The right lender presents the offer correctly.
"Your VA disability income won't fully count for qualifying."
VA disability compensation is fully usable as qualifying income, and in many cases it can be grossed up because it's tax-free. That increases your buying power, not decreases it.
"You can only use your VA benefit once."
The benefit renews when a VA loan is paid off. In some scenarios you can use it on multiple properties at once through second-tier entitlement. The benefit is yours for life.
"Closing costs will run you thousands out of pocket."
VA buyers can structure offers where the seller pays every dollar of closing costs and prepaids, up to 4% of the loan amount in concessions. Combined with zero down, this can mean buying a home with truly minimal out-of-pocket cost.