VA Loan FAQs for Active Duty, Veterans & Military Families
Thinking about buying a home with your VA benefit or curious about what you qualify for? You're in the right place. Tom Pessemier has been a Military Lending / VA Specialist since 2003, and the Pessemier Mortgage Team specializes in helping military buyers and homeowners confidently navigate the VA mortgage process from start to finish. Here are answers to questions we hear every day, in plain language that's easy to understand.
What is a VA loan, and who can use it?
A VA loan is a home loan backed by the U.S. Department of Veterans Affairs, designed to help eligible service members, veterans, and some surviving spouses buy, build, improve, or refinance a home. You may qualify if you've served active duty, are currently serving, or have completed enough time in the National Guard or Reserves. Unremarried surviving spouses may be eligible in certain cases as well.
How do VA loans compare to conventional loans?
VA loans come with some real advantages. Most buyers can purchase with zero down payment, and VA loans don't require monthly mortgage insurance - even if you put nothing down (the VA does charge a VA funding fee for all non-disabled veterans; but it's financed into the loan, and we have some creative ways to minimize that fee too, depending on your circumstances). Interest rates are often lower than conventional loans, and qualifying can be a lot more flexible, especially when it comes to debt-to-income ratios and credit score minimums.
What's the process to get started with a VA loan?
It starts with a conversation. We'll review your service history, talk through your goals, and check your eligibility. After you gather basic documents (like paystubs or LES's, bank statements, and your DD214 or Statement of Service), we'll request your Certificate of Eligibility (COE) through the VA's automated system, run your numbers, and explain your options. You'll get pre-approved before you start shopping for a home. From there, we guide you through every step - including the offer, appraisal, underwriting, and closing.
How do I know if I'm eligible for a VA loan?
Eligibility depends on your service. Most veterans qualify with 90 days of active service during wartime, 181 days during peacetime, or six years in the National Guard or Reserves. Honorable discharge is required. If you're unsure, we can check your eligibility and request your COE for you, often in minutes.
What is the VA Certificate of Eligibility (COE), and how do I get it?
The COE proves to your lender that you qualify for a VA-backed loan. We can request it electronically in most cases, or you can apply online through the VA's website. You'll likely need your service documents (like your DD214 if you're a veteran, or Statement of Service if you're active), or NGB-22 if you served in the Reserves.
Do I really need zero down payment?
Most VA buyers can finance 100% of the home's value with no down payment. You can put money down if you wish - even 5% down lowers your VA funding fee and monthly payment - but it's not required unless the home's price exceeds your county loan limit or if the appraised value comes in lower than your offer.
What is the VA funding fee?
The VA funding fee is a one-time charge that helps keep the program running for future borrowers. The fee amount depends on your down payment and if it's your first use of the benefit. Some buyers (like those with service-connected disabilities) may be exempt. Most roll the fee into their loan, so you don't pay it out of pocket at closing. Here is a short video where I explain How to Reduce or Eliminate the VA Funding Fee.
What credit score do I need for a VA loan?
The VA doesn't set a minimum score, but most lenders look for minimum scores of 580 to 620. We work with hundreds of lenders, and as of 2/2026, we have lenders who will go as low as 550 credit scores, with 0% down, or 500 credit scores with 10% down (as long as we can show clean housing payment history over the most recent 12 months, and can prove "compensating factors" such as a good amount of money in the bank). If your credit has a few bumps, we'll help you find options and explain steps to improve your score if needed.
What income and debt standards apply?
Lenders review your monthly income, debts, and expenses to make sure your payment is affordable. VA loans often allow for a higher debt-to-income ratio than many other loan types. You'll need verifiable income, such as a full time W2 position, income from retirement or disability sources, or have your own profitable company that's been open long enough to file 2 tax returns, but non-taxable income (like some VA disability) gets bonused (or grossed-up) favorably. Typically, part time positions as well as variable income sources (such as overtime, commission, bonus…) need 2 years of continuous experience to use as qualifying income.
A trick that a lot of lenders overlook is that we can generally omit installment loans (like auto loans) on a VA mortgage application if there are 10 or fewer payments remaining, similar to conventional loans (IE for a loan with a minimum payment of $400, if the balance reflects $3,999 or less, we can typically pretend like it doesn't exist)! The lender must verify this via credit report, and the payment must not be so large that it severely impacts your ability to repay the mortgage immediately after closing.
What closing costs should I expect?
You'll pay typical home-buying costs like appraisal, title, and lender fees, but VA rules limit what you can be charged. Sellers can cover some or all of your closing costs (up to 4% of the price + typical closing costs…which can land in excess of the 4% rule if it makes sense to strategically utilize seller credits to your advantage). We break down every cost up front so you know exactly what to expect.
What types of properties can I buy with a VA loan?
VA loans work for single-family homes, some condos, and manufactured homes (if the property meets VA standards). The home must be your primary residence - not a vacation or investment property. The VA requires the property to be safe, sound, and sanitary. NOTE: if you bought your existing home with a VA loan, and want to keep it as a rental, that may be possible, depending on your circumstances.
How does deployment or PCS affect the loan process?
Active duty buyers and families facing Permanent Change of Station (PCS) moves can use a VA loan in their new duty station city. And the spouse of an active duty service member can satisfy the VA's occupancy requirements as well. We help coordinate document gathering, remote closings, and timelines to work with your orders. If you can't attend closing in person, you may be able to work with a mobile notary or U.S. embassy, or have your stateside spouse use a power of attorney.
What if I've already used my VA loan benefit?
You can typically use your VA loan benefit more than once, even if you've had a VA loan before. If you've paid off the prior loan and sold the property, we can restore your entitlement. In some cases, you can even have more than one VA loan at a time, depending on your entitlement and loan limits in the area you are buying your next home.
Can I refinance my current home with a VA loan?
Yes. The VA offers streamlined refinancing (Interest Rate Reduction Refinance Loan, or IRRRL) for current VA borrowers, often with no appraisal or income documentation. You can also do a VA cash-out refinance, replacing any loan type with a VA loan to tap into equity. VA cashout refinances can go as high as 90-100% of your current appraised home value.
Why work with a VA Mortgage Specialist like Tom Pessemier and The Pessemier Mortgage Team?
With experience going back to 2003 and licenses in 20 states, our team knows VA rules inside and out. As a mortgage broker, we shop hundreds of lenders through one application, looking for competitive rates and flexible options that fit your situation. We know the military's unique challenges, from tight timelines to PCS orders to deployment surprises, and we guide you every step of the way. You won't have to guess what comes next or what documents you'll need - we lay it all out and answer all of your questions.
How can I get started?
If you want to understand your VA home buying power or get a clear plan for your next move, schedule a call with The Pessemier Mortgage Team: 15-min meeting via Phone or Zoom with Tom Pessemier – Tom Pessemier, Mortgage Broker. We'll walk you through your options, explain what to expect, and help you start the home buying process with confidence.
Still have questions? Reach out by phone, text, or email (804-806-3465 | team@tompessemier.com) for honest answers and friendly, expert guidance. Your path to affordable homeownership starts here.
