Just like conventional loans, VA loans are issued by private lenders, but they’re insured by the government. VA loans are generally a better deal than conventional or FHA mortgages for the eligible veterans, active military, and reservists who have earned access to this benefit through their service to our country. As previously mentioned, these government-backed loans come with significant benefits that help veterans purchase with zero or low minimum down payment and competitive VA mortgage rates.

Conventional loans feature no government guarantees and adhere to the standards and requirements of government-sponsored enterprises Fannie Mae and Freddie Mac. Unlike the no down payment feature of the VA loan, these enterprises require the conventional borrower to put down at least 3 percent down toward the purchase of the new home. In addition, conventional loans with a down payment of less than 20 percent require mortgage insurance that the borrower must purchase, which the VA loan requirements do not impose.

Yes! The VA funding fee can be included in your VA loan, allowing you to reduce upfront costs. This one-time charge helps sustain the VA loan program and is required for most borrowers.

Pros & Cons of Rolling the VA Funding Fee Into Your Mortgage

✅ Benefits:

• Lowers Upfront Expenses: Keeps more cash in your pocket for moving, home improvements, or savings.
• No Immediate Out-of-Pocket Payment: Avoids a large closing cost by adding the required fee to your loan balance.

⚠️ Drawbacks:

• Increases Loan Balance: Since the VA funding fee charge is added to your mortgage, your total loan amount will be higher.
• More Interest Paid Over Time: Because it’s financed, you’ll pay interest on it throughout the life of the loan.

Think Long-Term: Your BAH Is an Investment in Your Future

If you’re concerned about affording the VA funding fee at closing, remember this: your BAH (Basic Allowance for Housing) is already covering your housing—why not use it to build equity instead of paying rent?

By using your VA home loan, you’re turning your BAH into an investment, rather than giving that money to a landlord. Financing the required fee into your loan helps keep cash in hand while still allowing you to benefit from homeownership, equity growth, and financial stability.

💡 Is It Right for You?
If you want to keep closing costs low, financing the funding charge might be a smart choice. However, if you want to pay less in interest, consider covering the fee upfront.

For a breakdown of the latest VA loan fee rates, check out our FAQ on VA Funding Fee Rates.

📌 For the most up-to-date information on VA loan fees and exemptions, visit the VA Lenders Handbook – VA Pamphlet 26-7. Click Chapter 8 for full guidance on borrower fees.

The VA Funding Fee Rate is a one-time payment required for most VA home loans. The exact rate depends on your loan type, down payment, and military status. Below are the latest VA Funding Fee Rates for 2024.

Purchase & Construction Loan VA Funding Fee Rates

Cash-Out Refinancing Funding Fee Rates

Other VA Loan Funding Fee Rates

How to Find the Latest Guidance

For the most up-to-date VA Funding Fee Rate information, visit the VA Lenders Handbook – VA Pamphlet 26-7. Click Chapter 8 to view complete guidance on borrower fees and VA funding fee rates.

💡 Tip: If you’re exempt from the VA funding fee, you could save thousands on your home loan. Be sure to check your eligibility before closing!

See How Much You Can Save on Closing Costs!

Want to see how much you can save on closing costs with our PCS Concierge Program? Use our PCS JOES Savings Calculator on the homepage to get an instant estimate of your savings!

A VA Funding Fee Exemption can save you thousands on your VA home loan by eliminating this one-time fee. If you qualify, you won’t have to pay the VA funding fee, reducing your upfront loan costs.

Who Qualifies for a VA Funding Fee Exemption?

According to the VA Lenders Handbook, Chapter 8, you may qualify for an exemption if you are:

• Receiving VA disability compensation for a service-connected disability.
• A veteran eligible for disability compensation but receiving retirement or active-duty pay instead.
• A surviving spouse of a veteran who died in service or due to a service-connected disability.
• A Purple Heart recipient currently on active duty.
• A service member with a pre-discharge disability rating of at least 10%.

How to Verify Your VA Funding Fee Exemption

To confirm your Exemption, check your Certificate of Eligibility (COE), which indicates exemption status. If your COE does not reflect an exemption, but you believe you qualify, contact the VA Loan Center or your lender to update your records.

The two fastest ways to obtain your Certificate of Eligibility (COE) are:

1. Online through the VA Website:
   • Visit the VA Home Loan COE Status page.
   • Sign in to your account to check the status of your COE request.
2. Through Your Lender:
   • Many lenders can access the WebLGY system to obtain your COE on your behalf. Contact your lender to see if they offer this service.

What to Do If Your Exemption Is Pending?

If your VA Funding Fee Exemption is still pending due to an ongoing disability claim, you may be required to pay the VA funding fee upfront. However, if your claim is later approved, you can request a refund from the VA.

See How Much You Can Save on Closing Costs!

Want to see how much you can save on closing costs with our PCS Concierge Program? Use our PCS JOES Savings Calculator on the homepage to get an instant estimate of your savings!

1. Closing costs vary by the state in which you live and by the type of mortgage you take. Your lender and your real estate agent are your best resources for estimating your “cash-to-close” amount.
2. For a list of common closing fees, check out our article “What costs will I pay at closing.”

Why Prequalification Matters When Buying a Home

Before starting your home search, it’s essential to get prequalification to understand your buying power. While not required, it gives you a clear estimate of what you can afford and helps you secure the best VA loan terms.

A lender reviews your income, debts, and financial details to determine your estimated loan amount. This step is crucial because it prevents wasted time on homes outside your budget and makes your homebuying journey smoother and faster.

What Is Prequalification?

Prequalification is an initial assessment of your financial situation. Unlike preapproval, which requires a credit check and full documentation, prequalification is based on self-reported information. It gives you a rough estimate of how much you may be able to borrow.

How Prequalification Works:

1. Submit financial details – Provide your estimated income, assets, and debts to a VA lender.
2. Get an estimated loan amount – The lender reviews your information and provides a loan range.
3. Start home shopping with confidence – Knowing your estimated VA loan eligibility helps you focus on homes within your price range.

Why Prequalification Is Key to a Successful Home Search

1. Helps You Set a Realistic Budget

Without getting prequalified, you could waste time looking at homes outside your financial reach. By knowing your VA loan estimate early, you can shop within your budget and avoid disappointment.

2. Makes You a More Competitive Buyer

Sellers and real estate agents take prequalified buyers more seriously. While preapproval is even stronger, prequalification shows you are financially prepared to buy a home.

3. Speeds Up the VA Loan Process

Since lenders already have an overview of your finances, prequalification can speed up the transition to preapproval and final loan approval when you find a home.

4. Helps You Identify Potential Loan Issues

During prequalification, your lender might identify debt-to-income (DTI) concerns, low credit, or funding fee requirements. Addressing these early ensures a smoother VA loan process.

5. Shows You the Best VA Loan Options

Prequalification allows you to compare lenders and explore VA loan interest rates, fees, and terms before making a commitment.

Does Prequalification Guarantee a VA Loan?

No, prequalification is not a loan guarantee. Since it’s based on self-reported financial information, the lender does not verify:

• Income and employment
• Credit score and debt history
• Bank statements and assets

To secure a VA loan, you’ll need to get preapproved, which involves full financial verification.

If you’re planning to buy a home in 2025, understanding how bidding wars and competition impact the market is crucial. Check out this guide on homebuying strategies for 2025 to learn how to position yourself for success.

How to Get Prequalified for a VA Loan

The process is simple and fast:

1. Contact a VA-approved lender – Work with a VA loan officer to discuss your homebuying goals.
2. Provide basic financial details – Share your estimated income, debts, and assets (no documentation required).
3. Get your prequalification estimate – Your lender provides a rough loan amount range.
4. Start your home search – Use your estimate to shop for homes within your budget.

Get Prequalified and Start Your VA Loan Journey Today

Prequalification is the first step toward homeownership with a VA loan. Even though it’s not a loan guarantee, it gives you a financial roadmap and helps you shop for homes with confidence.

👉 Get Prequalified with a VA Loan Officer Today and start your successful home search!

The VA Home Loan is one of the most powerful benefits available to military members, but not everyone qualifies. If you’re wondering whether you meet the VA loan eligibility requirements, this guide breaks down who qualifies, how to apply, and what documents you need.

Who Qualifies for a VA Loan?

To qualify for a VA-backed home loan, you must meet one or more of the following service requirements.

Active-Duty Service Members & Veterans

You are eligible for a VA loan if you served:

• At least 90 consecutive days of active duty during wartime, or
• At least 181 consecutive days of active duty during peacetime.

National Guard & Reserve Members

You may qualify if you:

• Served at least six years in the Selected Reserve or National Guard, or
• Served at least 90 days of active duty under Title 10 orders, or
• Served at least 90 days (30 of them consecutive) under Title 32 orders.

Surviving Spouses

Unremarried spouses may qualify for a VA loan if their service member:

• Died in service or from a service-connected disability, or
• Was missing in action (MIA) or a prisoner of war (POW), or
• Was totally disabled from a service-connected condition before passing (even if the cause of death was unrelated).

For full details, visit the VA Home Loan Eligibility Page.

How to Prove VA Loan Eligibility

To apply for a VA loan, you need a Certificate of Eligibility (COE), which proves to lenders that you qualify.

How to Get a COE:

• By mail: Submit VA Form 26-1880 to the VA.
• Online: Apply through the VA eBenefits portal.
• Through a VA lender: A VA loan officer can request it for you.

👉 Connect with a PCS JOES approved VA Loan Officer Today and start your homebuying journey with expert support.