Why VA still beats almost every other purchase loan
A VA-backed purchase loan can be 100% financed. There is no monthly private mortgage insurance. Rate and pricing are often better than conventional at the same credit tier. For a Veteran buying a $400,000 home, skipping PMI can easily be $200–$350 a month — every month, for years.
Joe has closed VA loans for decades across Minnesota and the other states he is licensed in (AZ, CO, FL, IA, ND, SD, WI). The product is simple when the file is structured right. It gets messy when someone treats it like FHA with a different logo.
Who is eligible?
You need a Certificate of Eligibility (COE). Typical paths:
- Active duty (usually 90 consecutive days in wartime, 181 in peacetime — we verify against the current VA table).
- Veterans who met the length-of-service rules for their era.
- Eligible National Guard / Reserve members.
- Some surviving spouses.
If you have a COE, we pull it through the VA system in minutes. If you do not, we help you get one. Do not wait on a paper letter from 2011 in a file cabinet.
Entitlement, in plain English
VA guaranty is what lets a lender do $0 down. With full entitlement, there is no VA-imposed loan limit. You can buy above the conforming limit (Minnesota’s 2026 one-unit conforming limit is $832,750) as a VA jumbo — still often $0 down if residual income, credit, and the appraisal hold.
If you already have a VA loan outstanding, or you defaulted years ago and entitlement was not restored, you may have partial entitlement. That is when county loan limits start to matter, and you may need a down payment. This is a math problem, not a “VA said no” problem. Bring the COE and we will run it.
2026 VA funding fee
VA charges a one-time funding fee instead of monthly PMI. You can pay it in cash or roll it into the loan. Disabled Veterans receiving VA disability compensation (and some others) are exempt — that is a real, immediate savings.
| Purchase / construction | First use | After first use |
|---|---|---|
| Less than 5% down | 2.15% | 3.3% |
| 5% to 9.9% down | 1.5% | 1.5% |
| 10% or more down | 1.25% | 1.25% |
Cash-out refinance uses 2.15% (first) / 3.3% (subsequent). A VA IRRRL (Interest Rate Reduction Refinance Loan) is 0.5%. These figures are the published 2026 schedule; always confirm on VA.gov before you lock.
Example: First-use purchase, $0 down, $400,000 loan, not exempt. Funding fee = 2.15% × $400,000 = $8,600. Rolled in, the loan becomes $408,600. Still no monthly PMI.
Rules people trip on
- Occupancy. You must intend to occupy as your primary residence within a reasonable time (typically 60 days). VA is not an investment-property product. A 2–4 unit is allowed if you live in one unit.
- Residual income. VA cares more about leftover cash after bills than a raw DTI number. A high-income borrower with huge car payments can fail; a modest-income household with low fixed costs can pass.
- VA appraisal / MPR. The home has to be safe, sound, and sanitary. Peeling paint on a 1978 house, no heat, or a non-working well can delay closing. We flag that before you waive inspections in a bidding war.
- Seller concessions. VA is generous here. We can often have the seller cover closing costs so your cash-to-close stays near zero.
Can you use VA more than once?
Yes. Pay off the old VA loan (usually by selling) and entitlement restores. You can also have two VA loans at once in specific cases — for example a PCS where you keep the first home and buy at the new duty station. That is a restoration / entitlement puzzle. Do not let a big-bank LO tell you “you already used it” and stop there.
This article is for education only and is not a commitment to lend, a rate lock, or a guarantee of any program. Loan approval, rates, fees, and assistance amounts depend on the borrower, the property, the lender, and current guidelines. Programs and limits change. Joe Metzler, NMLS #274132, Cambria Mortgage. Equal Housing Lender. Licensed in AZ, CO, FL, IA, MN, ND, SD, and WI.
Talk through your scenario
Joe will tell you which program fits — and which one to skip.