Your VA Loan Questions, Answered

VA loans are available to:

• Veterans who served on active duty and were discharged under conditions other than dishonorable
• Active duty service members with at least 90 continuous days of service
• National Guard and Reserve members with 6 years of service or 90 days of active duty under Title 10
• Certain surviving spouses of veterans who died in service or from service-connected disabilities

Specific service requirements vary by era and branch. Check your full eligibility here or call us at (651) 552-3681.

The VA itself doesn't set a minimum credit score requirement. Most VA-approved lenders look for a credit score of at least 580-620, but approval is possible with lower scores through manual underwriting.

VA loans are more forgiving than conventional mortgages. Lenders focus on your overall financial picture, including:

• Recent payment history (last 12-24 months)
• Stable employment and income
• Debt-to-income ratio
• Explanation of past credit issues

Even if you've had a bankruptcy or foreclosure in the past, you may still qualify. We evaluate each situation individually.

Yes. VA loans are more forgiving than conventional loans when it comes to past credit issues.

Waiting periods after bankruptcy:

• Chapter 7: Typically 2 years from discharge date
• Chapter 13: May be eligible after 1 year with on-time payments

Waiting periods after foreclosure:

• VA foreclosure: Typically 2 years
• Non-VA foreclosure: Typically 2 years

These are general guidelines. With proper documentation showing you've re-established credit, maintained stable employment, and resolved the issues that led to the bankruptcy or foreclosure, you may qualify sooner.

No. There is no first-time homebuyer requirement for VA loans. Whether this is your first home, your fifth home, or you're moving from another property, you can use your VA loan benefit as long as you're eligible.

In fact, your VA loan benefit is reusable — you can use it multiple times throughout your lifetime. Once you sell a home purchased with a VA loan or pay it off, your entitlement is restored for future use.

Yes! Your VA loan benefit is reusable. There's no limit to how many times you can use it throughout your lifetime.

How it works:

• Buy a home with a VA loan
• Sell the home and pay off the loan
• Your entitlement is restored
• Use it again for your next home

You can also have multiple VA loans at the same time using remaining entitlement. For example, if you're relocating for military service or buying a second home, you may be able to keep your first VA-financed home and purchase another.

No. VA loans allow qualified veterans to purchase a home with zero down payment. This is one of the most powerful benefits of the VA loan program.

You can finance 100% of the home's purchase price. While you're welcome to put money down if you choose (which can lower your monthly payment and funding fee), it's not required.

This benefit allows veterans to become homeowners without spending years saving for a down payment — keeping your cash for furniture, moving expenses, renovations, or emergency savings.

No. VA loans never require private mortgage insurance (PMI), regardless of your down payment amount.

This is a massive advantage over conventional loans, which require PMI if you put down less than 20%. PMI typically costs $200-400+ per month on a typical home — that's $60,000-120,000+ over the life of a 30-year mortgage.

Even though VA loans have a one-time funding fee, you still save significantly compared to monthly PMI payments on conventional loans.

The VA funding fee is a one-time fee that helps sustain the VA loan program for future generations of veterans. It's typically financed into your loan amount — you don't pay it out of pocket at closing.

Current VA funding fee rates (2025):

• First-time use, 0% down: 2.15% of loan amount
• First-time use, 5%+ down: 1.50% of loan amount
• First-time use, 10%+ down: 1.25% of loan amount
• Subsequent use, 0% down: 3.30% of loan amount
• VA IRRRL refinance: 0.50% of loan amount
• National Guard/Reserve: Add 0.25% to above rates

Who is exempt from the funding fee?

• Veterans receiving VA disability compensation
• Veterans eligible to receive disability but receiving retirement pay instead
• Surviving spouses of veterans who died in service or from service-connected disabilities

On a $400,000 loan, the funding fee would be $8,600 (first-time use, 0% down). This is typically financed into your loan, increasing your total loan to $408,600.

Learn more about the VA funding fee

VA loan timelines are similar to conventional loans:

• Pre-approval: 24-48 hours (often same day)
• Full approval and closing: 30-45 days on average
• VA IRRRL streamline refinance: 2-3 weeks (faster with minimal documentation)

Timeline depends on several factors including how quickly you provide documentation, VA appraisal scheduling, and underwriting workload. We work hard to close as quickly as possible while ensuring accuracy.

Having your Certificate of Eligibility (COE), recent pay stubs, W-2s, tax returns, and bank statements ready can significantly speed up the process.

Your COE is the official document from the Department of Veterans Affairs that proves you're entitled to use your VA home loan benefit. It's required for every VA loan.

Three ways to get your COE:

• Through your lender (easiest): We can pull your COE electronically in minutes at no cost to you
• Online: Apply through VA.gov with your DS Logon, My HealtheVet, or ID.me account
• By mail: Complete VA Form 26-1880 and mail with supporting documents (slowest method)

Your COE shows how much entitlement you have available, whether you've used your benefit before, and any funding fee exemptions you may have.

Complete guide to getting your Certificate of Eligibility

A VA appraisal is required on every VA purchase loan. It serves two purposes:

• Determines fair market value: Ensures you're not overpaying for the property
• Protects the veteran: Verifies the home meets VA's Minimum Property Requirements (MPRs) for safety, soundness, and sanitation

The VA appraiser looks for issues like:

• Structural problems
• Roof damage or deterioration
• Safety hazards (peeling paint, exposed wiring, etc.)
• Working heating, plumbing, and electrical systems
• Proper ventilation

If issues are found, the seller typically must repair them before closing, or the buyer and seller can negotiate who pays for repairs.

VA appraisals typically cost $500-800 and are ordered by your lender once you have an accepted offer.

To apply for a VA loan, you'll typically need:

Military/VA Documents:

• DD Form 214 (veterans)
• Statement of Service (active duty)
• NGB 22 or 23 (National Guard/Reserve)
• Certificate of Eligibility (COE) — we can help you get this

Income Documentation:

• Last 2 years W-2s
• Last 2 years tax returns (if self-employed)
• Most recent 30 days of pay stubs
• Proof of additional income (pension, disability, rental income, etc.)

Asset Documentation:

• Last 2 months bank statements (all accounts)
• Retirement account statements (401k, IRA, etc.)
• Gift letter if receiving down payment assistance

Other:

• Valid government-issued ID
• Social Security card
• Rental or mortgage payment history (last 12 months)

Don't worry if you don't have everything ready — we can guide you through the process step by step.

A VA Interest Rate Reduction Refinance Loan (IRRRL), also called a "VA Streamline Refinance," allows you to refinance your existing VA loan to a lower interest rate with minimal paperwork.

IRRRL benefits:

• No appraisal required (in most cases)
• No income verification required (in most cases)
• Lower funding fee (0.50% vs. 2.15%)
• Fast closing (often 2-3 weeks)
• Lower your monthly payment
• Switch from adjustable-rate to fixed-rate

Requirements:

• Must currently have a VA loan
• Must be refinancing to a lower interest rate OR from ARM to fixed
• Must have made at least 6 months of on-time payments
• Must certify you previously occupied the property

Learn more about VA IRRRL refinancing

A VA cash-out refinance allows you to tap into your home's equity by refinancing for more than you owe and taking the difference in cash.

Common uses for VA cash-out:

• Home improvements or renovations
• Debt consolidation (credit cards, auto loans, etc.)
• Education expenses
• Emergency expenses
• Business investment

Key features:

• Access up to 90% of your home's value
• Can replace a non-VA loan with a VA loan
• Full appraisal required
• Income and credit verification required
• Competitive VA interest rates

Learn more about VA cash-out refinancing

Yes! You can use a VA loan to purchase a 2-4 unit property with zero down payment, as long as you occupy one of the units as your primary residence.

This is an excellent strategy for veterans looking to:

• Build wealth through real estate
• Offset their mortgage with rental income
• Live for free (or nearly free) while tenants pay the mortgage
• Start a real estate investment portfolio

The rental income from the other units can be used to help you qualify for the loan, making it easier to afford a larger property.

Yes, but the condo or townhouse must be VA-approved.

For a condo complex to be VA-approved, the homeowners association (HOA) must meet certain VA requirements regarding finances, owner-occupancy ratios, and insurance.

Many popular condo developments are already VA-approved. We can check the VA's approved condo list to verify eligibility, or we can help the HOA get approval if it's not yet on the list.

Townhouses that don't share common areas with other units (essentially detached or attached single-family homes) don't require VA condo approval.

Yes! The VA offers construction loans that allow you to build a new home with zero down payment.

VA construction loan options:

• VA Construction-to-Permanent Loan: One loan that covers both construction and permanent financing
• VA Lot Loan: Purchase land now, build later

Requirements:

• Detailed construction plans and timeline
• Licensed and insured builder
• Builder must be approved by your lender
• Appraisal based on completed home value

VA construction loans are more complex than standard purchase loans, but they're an excellent option for veterans who want to build their dream home from the ground up.

Yes, in most cases. VA loans typically offer lower interest rates than conventional mortgages.

Why VA rates are lower:

• Backed by the U.S. government, reducing lender risk
• No PMI required, making loans less risky for lenders
• Veteran borrowers historically have lower default rates

Even a 0.25% lower interest rate can save you tens of thousands of dollars over the life of your loan. On a $400,000 mortgage, 0.25% lower saves approximately $60/month or $21,600 over 30 years.

View current VA mortgage rates

Yes. VA loans never have prepayment penalties.

You can:

• Make extra principal payments anytime
• Pay off your entire loan early
• Refinance without penalty
• Sell your home without prepayment fees

This flexibility allows you to save thousands in interest by paying off your mortgage faster if your financial situation improves.

As of 2020, there is no maximum VA loan amount for veterans with full entitlement.

This means if you have your full VA entitlement available (you've never used your benefit, or you've used it and had it restored), you can borrow whatever amount a lender will approve based on your income, credit, and debt-to-income ratio — with zero down payment.

For veterans with partial entitlement remaining:

If you've used your VA benefit and still have a VA loan outstanding, you may have partial entitlement remaining. In this case, the VA will guarantee up to 25% of the county loan limit in your area. You can still buy a home above this amount, but you may need a down payment on the amount exceeding the guarantee.

Most veterans buying a primary residence won't hit these limits and can purchase with zero down regardless of price (within their qualifying income range).

While both are government-backed, VA loans are far superior for eligible veterans:

VA Loan Advantages:

• Zero down payment (FHA requires 3.5% minimum)
• No PMI ever (FHA requires it for the life of the loan on purchases with less than 10% down)
• Typically lower interest rates
• More flexible credit requirements
• Limited closing costs
• Only for veterans (earned benefit)

FHA loans:

• Require 3.5% down payment minimum
• Require both upfront and monthly mortgage insurance
• Available to anyone who qualifies (not service-restricted)

If you're eligible for a VA loan, it's almost always the better choice than FHA.

In most cases, using your VA loan benefit is the smarter financial choice, even if you have 20% saved for a down payment.

Why VA loans often win:

• Lower rates: VA loans typically have lower rates than conventional
• Keep your cash: Use your 20% for investments, renovations, emergency fund, or other opportunities
• Higher return potential: Your 20% may earn more invested than the small amount you'd save in interest
• Flexibility: Cash gives you options in emergencies

When conventional might make sense:

• You're buying a condo that isn't VA-approved
• You're buying an investment property (VA loans require owner occupancy)
• You want to preserve your VA benefit for a future purchase

We can run the numbers for your specific situation and show you which option saves you more money long-term.

Yes. The myth that sellers don't like VA loans is outdated and largely untrue.

Why sellers should welcome VA offers:

• VA buyers are serious and well-qualified (they've served our country and earned this benefit)
• VA appraisals protect both buyer and seller by ensuring the home is in good condition
• VA loans close on time at similar rates to conventional loans
• With a strong pre-approval letter, your offer is as competitive as any other

Tips to make your VA offer more competitive:

• Get pre-approved (not just pre-qualified)
• Work with an experienced VA loan specialist
• Write a personal letter to the seller
• Be flexible on closing timeline
• Offer a strong earnest money deposit

We've helped thousands of veterans win competitive offers using VA loans — even in hot markets.

If the VA appraisal comes in lower than the purchase price, you have several options:

• Renegotiate the price: Ask the seller to lower the price to match the appraised value
• Pay the difference: Bring the difference in cash (VA will only finance up to appraised value)
• Meet in the middle: Negotiate a compromise where seller lowers price and you pay some cash
• Challenge the appraisal: If you have evidence of comparable sales the appraiser missed, we can request a reconsideration of value
• Walk away: Your earnest money should be protected if you can't reach an agreement

In reality, VA appraisals come in at or above purchase price in the vast majority of transactions. When they don't, it's often protecting you from overpaying.

Your spouse can be on the loan with you, but only eligible veterans, active duty service members, and certain surviving spouses can use the VA loan benefit as the primary borrower.

If you're the veteran:

• Your spouse can be a co-borrower on the loan
• Their income can be used for qualifying
• Both of you will be on the title
• The VA loan benefits (zero down, no PMI) apply

If your veteran spouse passes away:

Surviving spouses of veterans who died in service or from service-connected disabilities may be eligible to use VA loan benefits themselves. Requirements vary, so contact us for specific guidance.

Your VA loan does not disappear if you pass away. Here's what typically happens:

If your spouse or heir inherits the property:

• The loan continues under the same terms
• Your heir takes over making payments
• The loan doesn't become immediately due
• The property stays in your family

Options for your heirs:

• Keep the home and continue making payments
• Refinance the loan into their own name
• Sell the home and pay off the loan

Life insurance consideration:

Many veterans choose to carry life insurance equal to their mortgage balance to ensure their family can pay off the loan if something happens. This gives your loved ones the option to keep the home mortgage-free.

No. Your VA loan benefits are the same nationwide — zero down payment, no PMI, competitive rates, and all other VA advantages apply regardless of where you buy.

What may differ by state:

• Property taxes (state and local rates vary)
• Closing costs (some states have higher title/attorney fees)
• Home prices (market-dependent)
• State-specific veteran benefits (property tax exemptions, additional grants, etc.)

Joe Metzler is licensed in Arizona, Colorado, Florida, Iowa, Minnesota, North Dakota, South Dakota, and Wisconsin and can help you navigate state-specific considerations in any of these states.

Yes! Minnesota offers several additional benefits for veterans beyond the federal VA loan program:

• Property Tax Exclusion: Disabled veterans may exclude up to $300,000 of home value from property taxes (2025)
• Military Service Credit: Boost your income if you're a working veteran buying a home
• Minnesota GI Bill: Education benefits that can free up income for mortgage payments

We can help you understand and maximize all federal and state benefits available to you in Minnesota.