VA loans are widely considered the best mortgage program available. Here's everything eligible veterans and service members need to know.
If you've served in the U.S. military, you may be eligible for one of the most powerful mortgage programs available: the VA loan. Backed by the Department of Veterans Affairs, VA loans offer benefits that no other loan program can match.
Who Is Eligible?
VA loan eligibility is based on your service history:
Veterans: 90 consecutive days of active duty during wartime, or 181 days during peacetime.
Active Duty Service Members: 90 consecutive days of active duty.
National Guard and Reservists: 6 years of service, or 90 days of active duty under Title 32 orders.
Surviving Spouses: Unremarried spouses of veterans who died in service or from a service-connected disability.
To confirm eligibility, you'll need a Certificate of Eligibility (COE). We can obtain this for you as part of the loan process.
The Key Benefits
No Down Payment Required
This is the most significant benefit. You can purchase a home with 0% down — no other conventional loan program offers this without income or geographic restrictions.
No Private Mortgage Insurance (PMI)
Conventional loans require PMI when you put less than 20% down. VA loans never require PMI, saving you $100–$300/month on a typical loan.
Competitive Interest Rates
Because the VA guarantees a portion of the loan, lenders can offer lower rates. VA rates are typically 0.25–0.5% lower than conventional rates.
Flexible Credit Requirements
While most VA lenders require a 620 credit score, the VA itself has no minimum. Borrowers with lower scores may still qualify.
No Prepayment Penalty
You can pay off your VA loan early without penalty.
Lifetime Benefit
Your VA loan benefit doesn't expire and can be used multiple times. You can even have two VA loans simultaneously in some circumstances.
The VA Funding Fee
VA loans require a funding fee — a one-time charge that helps fund the VA loan program. The fee ranges from 1.25% to 3.3% of the loan amount depending on your down payment and whether it's your first VA loan.
The funding fee can be financed into the loan (so you don't need to pay it upfront) or waived entirely if you have a service-connected disability rating of 10% or higher.
VA Loan Limits
As of 2020, there are no VA loan limits for eligible veterans with full entitlement. You can borrow as much as a lender will approve without a down payment.
What Properties Qualify?
VA loans can be used for:
Investment properties and vacation homes do not qualify — the home must be your primary residence.
The VA Appraisal
VA loans require a VA appraisal, which includes a Minimum Property Requirements (MPR) inspection. The property must be safe, sound, and sanitary. Some older homes may need repairs before closing.
Using Your Benefit in NJ and NY
VA loans are available throughout New Jersey and New York. We work with VA borrowers regularly and understand the specific requirements and timelines involved.
If you're a veteran or active-duty service member, we strongly encourage you to explore your VA loan benefit before considering any other loan type. It's one of the most valuable benefits of your service.