VA Financing-Serving Those That Have Served Us

This Veterans Month, homeownership can be one of the most valuable benefits you've earned — and the VA loan is how you use it. Backed by the U.S. Department of Veterans Affairs, a VA home loan lets qualified Veterans and Active-Duty Service Members buy a primary residence with no down payment and no monthly mortgage insurance, subject to eligibility and applicable VA requirements.

I'm Eric Winterstein, a Mortgage Loan Officer with CrossCountry Mortgage in Boca Raton, Florida. I've spent over 15 years helping Florida's military community use their benefits. The VA loan isn't just a mortgage—it's an earned advantage that changes how you approach the entire home-buying process. Here's what makes it different and how to put it to work for you.

Why a VA loan can mean no down payment

Most mortgage programs expect you to bring cash to the closing table. A VA loan can be different — when you have full entitlement available and meet the program's eligibility requirements, the loan can fund up to 100% of the home's value, which is how the program may allow for no down payment.

That's a meaningful difference. With a conventional loan, buyers who put down less than 20% typically face private mortgage insurance (PMI), an added monthly cost. VA loans can help you avoid that because the VA guarantees a portion of the loan, which reduces the risk lenders take on. Eligible homebuyers may be able to purchase a home with no money down and no added monthly mortgage insurance premium.

Of course, a no-down-payment loan means your loan amount is larger, so your monthly payment will be higher than if you'd put money down. That's worth factoring into your budget as you decide how much home you can comfortably afford.

What is the VA funding fee?

The VA funding fee is a one-time fee that helps support the VA loan program so other Veterans and their families can keep using the benefit. It's a percentage of your total loan amount.

Here's the good news: the funding fee doesn't have to be paid upfront or at closing. In many cases it can be financed into the loan, subject to applicable requirements. And certain borrowers may be exempt from the VA funding fee based on applicable VA requirements, so it's worth asking your loan officer whether you may qualify.

Qualifying for a VA loan

The VA doesn't set a minimum credit score requirement for eligibility. Individual lenders set their own credit guidelines, which vary by lender and are designed to meet each borrower's circumstances. VA financing is one option among several mortgage programs, and your loan officer can help you understand how the program's requirements apply to your situation.

How do VA loans compare to FHA and conventional loans?

Seeing the VA loan next to other common options helps you understand the choices available. Conventional loans are the standard mortgage most buyers use, while FHA loans are government-backed and aim to make homeownership more accessible to a range of borrowers. Here's how the three stack up on the factors that matter most.

Each program has its own requirements, and the right fit depends on your situation. With a VA loan, qualified borrowers may be able to finance without a down payment and without mortgage insurance, and the VA does not set a minimum credit score. Conventional and FHA programs each carry their own down payment, insurance, and credit guidelines. Your loan officer can compare what each option would mean for you and help you decide which direction fits your goals.

Each mortgage program has its own strengths and tradeoffs, and the right choice depends on your situation. Your loan officer can walk you through how the different options apply to you so you can make an informed decision about which one fits your goals.

How to start your VA home loan

The path to a VA loan starts before you tour a single home. The smart first move is to connect with a loan officer who understands the program. We can help you apply for your Certificate of Eligibility and get pre-approved so you can better understand the loan amount you may qualify for. From there you can shop with confidence, make an offer, and move toward closing. Whether you're just exploring your options or ready to make an offer, I will be glad to walk you through your VA loan benefits.

Know your numbers. Know your options. Be ready when the right home comes along.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC ("CrossCountry") does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry. CrossCountry its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort, or other tortious action.

Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC NMLS3029 (www.nmlsconsumeraccess.org).

CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office. Certificate of Eligibility required for VA loans.