A Complete Guide to Using Your VA Loan Entitlement
Make the most of your hard-earned VA benefit, from who qualifies to the homes, repairs and closing costs to plan for.
If you've served, your VA home loan benefit is one of the most valuable things you've earned, and it's worth understanding before you start shopping. This guide is for veterans, service members, and National Guard and Reserve members who want a plain-language look at buying a home with a VA loan.
It covers who's eligible, what the benefit does for you, which homes can and can't qualify, and the costs that still come up even with zero down. For the details on your own situation, I always recommend working with a lender and an agent who know VA loans well.
Eligibility and what your entitlement does
Eligibility is based on your service, including how long you served and whether it was active duty, National Guard or Reserves. The guide outlines the basic service requirements, and your lender can confirm your eligibility by requesting your Certificate of Eligibility.
Your entitlement is the part of the loan the VA guarantees for the lender, and it's what makes the big benefits possible:
- No down payment required, so you need less cash at purchase
- No private mortgage insurance, which keeps your monthly payment lower
- Credit requirements that are more lenient than a conventional loan's, though your credit still counts
Entitlement can often be used more than once, and how much you have available depends on how you've used the benefit before. Your lender can tell you exactly where yours stands.
The home has to qualify too
Your service may qualify you, but the house needs to qualify as well. You can't use a VA loan for:
- A home you don't plan to live in, like an investment property
- A condo in a community the VA hasn't approved
- A fixer-upper that isn't safe, clean and secure, or a home with termite issues
The guide also covers condition problems that commonly have to be fixed before the VA will approve the loan: rotted wood around windows, doors, decks or siding, stairs without handrails, exposed wiring or uncovered outlets, and chipping or flaking paint in older homes, which is presumed to be lead-based. Spotting these early helps you plan your offer.
Zero down still has closing costs
Buying with no down payment cuts the cash you need, but there are still closing costs. The guide walks through the common ones, like lender fees, the appraisal, the closing attorney's fee, title insurance, prepaid taxes and homeowners insurance, and HOA charges if there's an association. Government-backed loans can also carry an upfront fee, so ask your lender how that applies to you. If cash at closing is a concern, let your agent know so asking the seller for help can be part of your offer.
Fees and program rules change, so confirm the current details with your lender before you count on any number.
Common questions about VA loans
Can I use a VA loan to buy an investment property?
No. VA loans are only for buyers who plan to live in the home.
Do I still pay closing costs with a VA loan?
Yes. A VA loan can let you buy with no down payment, but closing costs still apply. You can ask the seller to help with them as part of your offer.