1. Who is eligible for a VA loan?

Answer: Veterans, active-duty service members, National Guard members, Reservists, and certain surviving spouses are eligible. They must meet specific service requirements, such as having served 90 consecutive days during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserves.

2. What are the benefits of a VA loan?

Answer: VA loans offer several advantages, including no down payment requirement, no private mortgage insurance (PMI), competitive interest rates, flexible credit standards, and limits on closing costs. The VA also offers foreclosure avoidance assistance.

3. Is there a limit to how much I can borrow with a VA loan?

Answer: There's no official limit to how much you can borrow with a VA loan, but lenders may set their own limits based on your credit, income, and other financial factors. For loans over a certain amount, you may need to make a down payment.

4. Can I use a VA loan more than once?

Answer: Yes, VA loan benefits can be used multiple times as long as you pay off the previous VA loan or restore your entitlement. In some cases, you can have two VA loans simultaneously if your entitlement is only partially used.

5. Do VA loans require a down payment or PMI?

Answer: VA loans do not require a down payment in most cases, and they do not require private mortgage insurance (PMI). However, there may be a one-time funding fee, which can be rolled into the loan amount or waived for veterans with a service-connected disability.

6. What is the VA loan funding fee, and who is exempt from it?

Answer: The VA loan funding fee is a one-time fee paid to the VA to help sustain the program. It ranges from 1.4% to 3.6% of the loan amount, depending on factors like down payment and usage of the loan benefit. Veterans receiving compensation for service-related disabilities are exempt from paying the fee.

7. Can I use a VA loan for investment properties or second homes?

Answer: VA loans are intended for primary residences only. However, once you fulfill the occupancy requirement (typically living in the home for at least one year), you may convert the property to a rental. You cannot use a VA loan to directly purchase investment properties or vacation homes.