Military Home Loans: Your Complete VA Loan Guide

Many military families make a house a home on short notice due to frequent PCS moves. Fortunately, financial benefits exist that help make homeownership more accessible.

The VA home loan program offers eligible service members, Veterans, and surviving spouses a way to purchase a home with favorable terms and no down payment.

This guide walks through the VA loan process from start to finish, including eligibility, inspections, closing costs, and when you can and cannot use a VA loan.

A VA loan, also known as a military home loan, allows eligible service members and Veterans to purchase a home with favorable terms backed by the Department of Veterans Affairs. Conventional loans often require a 20% down payment to avoid private mortgage insurance (PMI). Without that down payment, borrowers must pay PMI until sufficient equity is built, which can significantly increase monthly costs.

VA loans remove both the down payment and PMI requirements. Eligible borrowers can purchase a home with no money down, competitive interest rates, and no PMI, making homeownership more affordable for many military families

To use your VA loan benefit, you must get an official Certificate of Eligibility (COE) from the VA. This verifies your military service and that you still have your VA loan entitlement left to use.

To use your VA loan benefit, you must intend to occupy the home as your primary residence.

That doesn’t mean that you can’t still use your VA loan to purchase a second home, but not all second homes will qualify for a VA loan.

In many cases, a service member purchases a home using a VA loan, later moves due to PCS orders, and converts that home into a rental. If the borrower still has remaining entitlement, they may be able to use a VA loan again for a new primary residence.

Your Certificate of Eligibility outlines how much entitlement you have available, and a VA-experienced lender can explain how that entitlement translates into purchasing power. Borrowers must still qualify based on income, credit, and debt-to-income requirements.

VA loans include standard closing costs such as title insurance, appraisals, attorney fees, and lender origination fees, all capped at 1% of the loan amount.

Borrowers also pay a VA funding fee, which helps sustain the program. Some borrowers, including those with service-connected disabilities or certain surviving spouses, may qualify for a funding fee waiver. Funding fee eligibility is listed on the COE.

Closing costs typically range from 3% to 5% of the purchase price. Borrowers may roll the funding fee into the loan amount, while other costs are paid at closing. VA loans allow sellers to provide concessions of up to 4% to help cover eligible costs.

VA loans require a VA appraisal to confirm the home’s value and ensure it meets Minimum Property Requirements. The appraisal occurs after a contract is signed but before closing.

While a home inspection is not required by the VA, it is strongly recommended to identify potential repairs or maintenance issues.

Homes must meet basic habitability standards. If repairs are required, borrowers may negotiate with the seller, request repairs before closing, or adjust the purchase price. In some cases, repair costs can be included in the loan with proper documentation.

1. Obtain your Certificate of Eligibility (COE) and get preapproved with a VA-experienced lender.
   Preapproval helps narrow home choices and strengthens purchase offers.
2. Select a home and submit an offer.
   Allow time for the VA appraisal, title work, and any required repairs. Working with the right real estate agent can be crucial for this part of the process.
3. Satisfy loan conditions and receive the clear to close.
   Once underwriting requirements are met and all documentation is finalized, the lender issues a clear-to-close notice.
4. Complete the final walkthrough and closing.
   Review the property, sign loan documents, and transfer any required funds.
5. Recording and possession.
   After documents are recorded, receive the keys to the home.
6. Remote closing for deployed service members (if applicable).
   Service members deployed overseas may use a power of attorney (POA) to complete the process remotely and then return home.

VA loans have specific requirements that can affect timelines and negotiations. Working with VA-experienced lenders and real estate agents helps avoid delays.

Keeping organized documentation, staying ahead of deadlines, and requesting seller concessions when appropriate can improve outcomes. A home inspection, while optional, can provide valuable leverage during negotiations.

The biggest difference between a VA home loan and any other type of mortgage is that you do not need to put any money down for a down payment, and you will not have to pay private mortgage insurance (PMI).

No, you cannot use one VA loan to buy two homes. Each home requires its own loan. However, some borrowers can hold two VA-backed loans at the same time if they have remaining VA entitlement and plan to live in the new home as their primary residence.

Example: A service member is approved for a $400,000 VA loan. The VA guarantees 25 percent of that amount, or $100,000. If the service member buys a $300,000 home, the VA guarantees $75,000 of that loan, leaving $25,000 of the guarantee unused. If the service member later buys a second home while still owning the first, that remaining $25,000 guarantee can support up to $100,000 on a second VA loan.

In total, the VA would guarantee $75,000 on the first home and up to $25,000 on the second home.

The VA requires an appraisal, not a home inspection. However, inspections are recommended to identify potential issues before closing.

Preparing for a VA loan closing starts by working with a real estate agent and lender who have experience with VA loans. These professionals understand VA-specific requirements and timelines, including documentation related to the Certificate of Eligibility.

Before closing, ensure all required documents are submitted promptly and respond quickly to lender requests to avoid delays. Buyers should also plan for the final walkthrough, review closing disclosures carefully, and confirm how closing costs and any seller concessions will be handled. Staying organized and proactive helps keep the closing process on track.

The VA loan is a great way for military members, Veterans, and some eligible family members to pursue the dream of home ownership. By reducing upfront costs without requiring PMI and offering competitive rates, the VA home loan program helps make this dream a reality.

If this sounds like the right path for you, getting pre-approved with a VA-experienced lender can help you understand what you qualify for before making any decisions. You can also reference our PCS toolkit for additional planning resources as you prepare for your move.

Have any tips for new and upcoming homebuyers? Be sure to share them in the comments below or tag us on Facebook @AHRNcom, Instagram @ahrncom, or Twitter @AHRNcom!