A VA loan is a mortgage program guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, certain National Guard and Reserve members, and surviving spouses of veterans who died in service or from a service-related disability. VA loans are one of the most powerful home-buying benefits available, offering terms that no other loan program can match. Read our complete VA loan guide.
The headline benefits of VA loans include: zero down payment (100% financing up to the conforming loan limit), no private mortgage insurance (PMI) — ever — regardless of LTV, competitive interest rates (typically 0.25% to 0.5% below conventional rates), limited closing costs (the VA restricts certain fees lenders can charge), no prepayment penalty, and the VA appraisal process includes a property inspection that helps protect the buyer.
VA loans do require a funding fee — a one-time fee that helps sustain the program. The fee ranges from 1.25% to 3.3% of the loan amount, depending on the borrower's service category, down payment, and whether it is their first VA loan use. The funding fee can be financed into the loan (added to the loan balance) rather than paid at closing. Veterans with service-connected disabilities are exempt from the funding fee entirely.
Eligibility is based on the borrower's service history. Generally, veterans need at least 90 days of active-duty service during wartime or 181 days during peacetime (with honorable discharge). Active-duty members are eligible after 90 days of service. National Guard and Reserve members are eligible after 6 years of service (or 90 days of active-duty service). Surviving spouses of veterans who died in service or from service-connected causes are also eligible. A Certificate of Eligibility (COE) from the VA confirms eligibility.
VA loan closings have specific requirements and fee restrictions that differ from conventional loans. At Beycome Title, we are experienced in VA closings and ensure full compliance with VA guidelines — including the VA's limitations on what fees the veteran can be charged. Our flat-fee pricing is particularly advantageous for VA borrowers. Use Beycome's mortgage calculator to model VA loan payments, or get your free closing quote.