VA LOANS

A VA loan is a mortgage benefit administered by the U.S. Department of Veterans Affairs and available exclusively to eligible veterans, active duty service members, National Guard and Reserve members, and qualifying surviving spouses. The VA does not lend money directly — it guarantees a portion of the loan, which allows VA-approved lenders to offer significantly more favorable terms than conventional financing. VA loans can be used to purchase a primary residence, refinance an existing mortgage through an Interest Rate Reduction Refinance Loan (IRRRL), or perform a cash-out refinance to access home equity. VA loans are among the few mortgage products available with zero down payment and no private mortgage insurance requirement, making them one of the most financially advantageous loan programs in existence for those who qualify.

VA loan eligibility is determined by your period of military service, duty status, and character of discharge. Generally, veterans who served 90 consecutive days of active duty during wartime, 181 days during peacetime, or six years in the National Guard or Reserves may be eligible. Active duty service members who have served the minimum required period are also eligible, as are surviving spouses of veterans who died in service or as a result of a service-connected disability. Eligibility is established through a Certificate of Eligibility (COE), which your Fiduciary Financing advisor can help you obtain. A prior VA loan does not disqualify you from future use — VA entitlement can be restored once a prior loan is paid off or, in some cases, can be used simultaneously with remaining entitlement.

While VA loans offer the most flexible qualification criteria of any major mortgage program, lenders still apply their own credit and income standards. Most VA-approved lenders look for a minimum credit score between 580 and 620, though higher scores unlock better rates. There is no official DTI limit under VA guidelines, but most lenders prefer ratios below 41%. VA loans require a funding fee — a one-time charge that varies based on your down payment amount, loan type, and whether you have used your VA benefit before. This fee can be financed into the loan and is waived entirely for veterans with a service-connected disability rating. VA loans are available for primary residences only and require the property to meet VA Minimum Property Requirements (MPRs).

For eligible borrowers, a VA loan almost always outperforms a conventional loan on a pure cost basis — particularly at the zero down payment level where conventional financing would require PMI. The elimination of a down payment preserves capital that can be deployed into investments, business, or savings while still building home equity. The absence of PMI reduces monthly carrying costs, and VA interest rates are historically among the lowest available across all loan categories. The primary trade-off is that VA loans are restricted to primary residences and require the property to meet VA standards — which can occasionally complicate transactions involving older homes or properties in need of repair. Our advisors will compare your VA benefit against conventional options to ensure the decision is grounded in your total financial picture.

VA loans offer exceptional advantages: zero down payment for eligible borrowers, no private mortgage insurance, competitive interest rates, flexible credit requirements, and the ability to finance the funding fee rather than paying it at closing. For veterans and service members, these benefits represent a meaningful return on military service that can translate to hundreds of thousands of dollars in savings over a lifetime of homeownership. The key considerations include the VA funding fee for borrowers without a disability exemption, the primary residence requirement, property condition standards that may limit eligible properties, and the need to obtain a Certificate of Eligibility before proceeding. As a veteran-owned firm, Fiduciary Financing is uniquely positioned to help you navigate every aspect of the VA loan process with the precision and respect your service deserves.