Thinking about buying a home with your VA benefits? VA home loans make homeownership more accessible for eligible veterans, active-duty service members, National Guard and Reserve members, and certain military spouses. Enjoy no down payment, no private mortgage insurance, and flexible credit requirements. Explore your options, see what you need to qualify, and find out how much you could save with a VA home loan. We are licensed in 9 states, and we can help with more than just VA Home Loans in Utah.
What is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. One of the biggest, and most unknown, advantages of VA loans is that the VA guarantees 25% of your loan amount. This guarantee gives lenders confidence to offer lower interest rates, no down payment, and more flexible guidelines and requirements.
The VA loan program is not just accessible. It’s also proven to be one of the best-performing loan types in the market. For many years, VA loans have had lower default and foreclosure rates than FHA loans, and even conventional loans, giving both buyers and lenders peace of mind. The VA sets important safeguards that lenders must follow to protect veterans and service members throughout the loan process. The VA loan is the most powerful loan program available for those who are eligible. About 10% of all new mortgages are VA loans. Estimate your payment with our VA Loan Calculator.
Why Choose a VA Loan to Buy a Home?
VA loans offer exclusive advantages that make homeownership easier, more affordable, and safer for those who have served. With no down payment required, no mortgage insurance, and flexible credit standards, VA loans help eligible veterans, active-duty service members, National Guard, and Reserve members achieve their homeownership goals faster and with less out-of-pocket expense. Unlike conventional loans, VA interest rates are less affected by your credit score. This means buyers with fair or even less than perfect credit can often get competitive rates.
0% Down, No PMI
There are many different programs within VA loans:
- Affordable loan programs
- Veteran Grants
- Hero Nextdoor
- 3-2-1, 2-1, 1-1, and 1-0 temporary buydowns
- Energy Efficient Mortgage
- Reverse Mortgages
- Fixed-Rate and Adjustable Rate options
- Construction and Renovation
Flexible Guidelines
VA loans have flexibility in areas that Conventional loans fall short.
- No Minimum Credit Score
- No Credit Score Eligible
- Higher Debt to Income Ratios
- Looks at Residual Income
- 0% Down
- Can be used multiple times
- Lenient Bankruptcy, Foreclosure waiting periods
- Logical Underwriting with late payments
Assumable
VA loans are assumable, even to a non-veteran (the entitlement is still tied to the original borrower). As assumption is when the existing loan can be transferred to a new borrower. This means the new buyer can keep the existing rate, closing costs are reduced, and the loan doesn’t restart. These are tricky to qualify for and take time. You can substitute entitlement to another veteran.
VA Funding Fee
The VA Funding Fee is the only drawback of the VA program. It’s a program fee that is rolled into the loan. It covers losses and helps the VA continue the program.
The fee changes based on if you’ve had a VA loan before, purchase or refinance, and down payment. Veterans with a disability rating of 10% or more are exempt from this fee.
VA Home Loans – Pros and Cons
Benefits of VA Loans
- Better Interest Rates
- No Loan Limits
- No Down Payment Requirement – Single family, townhomes, condos, manufactured homes, duplex, triplex, and fourplex
- Higher Debt to Income ratios allowed
- Bonus Entitlement (if own another home with VA)
- Flexible and Logical Underwriting requirements
- Streamline Refinance Option (IRRRL)
- 100% Cash Out Refinance
- Assumable
Drawbacks of VA Loans
- Primary Residence Only (except IRRRL)
- VA Funding Fee (unless exempt)
- Pickier Property Standards – homes with deferred maintenance/safety hazards will need to be fixed
- Termite Inspections
- Less flexible on certain guidelines, like job changes, self employed income, and renting out current homes.
VA Loan vs. Conventional
The VA Home Loan is the best mortgage in America. This simple chart compares the typical scenarios where VA or conventional loans are better. Keep in mind, every scenario is unique, and there are multiple programs within VA and Conventional loans. It’s always worth having an expert review your scenario before making a decision.
| VA Loans | Conventional Loans | |
|---|---|---|
| Credit Score | No minimum credit | 740+ unless large down payment |
| Down Payment | No Down Payment Required, unless already using VA Entitlement | Great credit and first time homebuyer has lower down payment requirements |
| Occupancy | Primary Residence only | Primary, Second/Vacation Home, or Investment Property |
| Interest Rates | Generally lower, and less affected by credit score and down payment. | Generally higher, even with perfect credit. Increase more with lower credit and down payment. |
| Mortgage Insurance | No Mortgage Insurance, ever. | Required if less than 20% down. Removable. Better rates with better credit. |
| Upfront Fees | VA Funding Fee (Rolled in). Exempt with 10% Disability Rating | Normal Closing Costs |
| Loan Limits | No Loan Limits | $806,500 (higher limits in high cost areas). |
| Buy new home and rent existing | Allows if moving directly from your existing home. If existing is VA, need Bonus Entitlement. | Allows with logical requirements. |
If you qualify for a VA loan, it offers lower monthly payments, fewer upfront costs, and more flexible guidelines than a conventional loan. The VA program does have a few nuances that can make another program work better for you, especially if you have a large down payment, you’ve already used your VA loan before, and you are not exempt from the VA Funding Fee. In this case, it can be worth avoiding the VA Funding Fee and looking at another program. Overall, the VA loan is the most powerful home financing tool available to veterans and active-duty service members.
Do I Qualify for a VA Home Loan?
To use a VA loan to buy a home, you’ll need to meet the VA’s service requirements and the VA’s credit and income guidelines. The VA service requirements determine if you are eligible, but you still need to qualify for the loan based on criteria the VA has set for lenders to follow.
VA Eligibility Requirements
Lenders will order your Certificate of Eligibility from the VA, and this is what determines your eligibility for a VA loan. The VA may request additional information to determine if your service qualifies based on their minimum service requirements.
Active Duty
Active Duty service requirement is 90 continuous days (all at once, without a break).
Veterans
The service requirement depends on when you served, and you must have an honorable discharge. Generally, the service requirement is 24 continuous months, 90-181 days called to active duty or deployed, or discharged for a service-connected disability. You can check the VA’s minimum service requirements here.
National Guard
National Guard members’ service requirement is 6 creditable years or 90 days of active-duty service.
Reservists
The service requirement for Reserve members is 6 creditable years or 90 days of active-duty service.
VA Loan Home Buying Options
FHA offers many different programs specific to buying a home that fall under the FHA loan umbrella. These are just the purchase specific programs.
Veteran Grant Programs
In addition to 0% down, there are programs to help veterans with closing costs and down payments for non-VA loans.
- Hero Nextdoor
- TruPath’s 3.5% grant
- Utah Housing Veteran’s Grant
- Homes for Heroes
Construction and Renovation
Construction and renovation loans have become more popular with rising home costs. Renovation loans can be used for repairs, upgrades, renovations, and even Accessory Dwelling Units (and use the income). These are great to build quick equity.
- One Time Close Construction
- Renovation Loan
VA Second Homes
The VA will allow you to use your VA loan again, even if you’re planning on keeping your existing home with a VA loan. The new property must be your primary residence, and you are able to rent out your old home.
To determine your eligibility, we will use the VA’s bonus entitlement calculation, which you can find here.
Additional Programs
- Temporary Buydowns (3-2-1, 2-1, 1-1, and 1-0)
- Accessory Dwelling Unit
- Fixed and Hybrid ARM
- Flex-Term – Choose your exact loan term by year
- Condos
- Manufactured Homes
- Refinance Specific Programs – IRRRL and 100% Cash Out Refi
How does the VA Funding Fee work?
The VA funding fee is a one-time cost charged by the Department of Veterans Affairds to help keep the VA loan program running without requiring taxpayer dollars. This fee is required on most VA loans and is typically financed into the loan amount rather than paid out-of-pocket.
This amount depends on a few key factors:
- Whether it’s your first time using a VA loan
- The amount of your down payment (if any)
- The type of VA loan (purchase, full refinance, or streamline refinance)
- Whether you have a service-connected disability (exempt from paying)
For most first-time VA homebuyers putting 0% down, the funding fee is 2.15% of the loan amount. For subsequent use, it rises to 3.3%.
2025 VA Funding Fee Chart for Buying a Home
| VA Entitlement | Down Payment | Funding Fee |
| First-Time Use | 0% | 2.15% |
| First-Time Use | 5% | 1.5% |
| First-Time Use | 10% | 1.25% |
| Subsequent Use | 0% | 3.3% |
| Subsequent Use | 5% | 1.5% |
| Subsequent Use | 10% | 1.25% |
| 10%+ Disability Rating | N/A | 0% |
VA Pro Tip – How to Get a VA Funding Fee Refund
If you’re awarded a service-connected disability rating after closing, you may be eligible for a refund of the VA funding fee you paid. The effective date must be before your closing date, meaning, you usually have to file your disability claim before closing on your home. Once approved, the VA will refund based on how it was paid. If financed, it will be applied towards your loan balance.
VA Loan Requirements
VA loans are approved through automated underwriting systems—specialized software developed by Fannie Mae and Freddie Mac to evaluate risk and eligibility. VA loans look at residual income closer than a traditional debt-to-income ratio. Residual income is essentially a dollar amount you need left over at the end of each month that the VA has determined, based on area and family size. In many cases, VA loans may be manually underwritten, where a person reviews your application in detail. However, manual underwriting usually comes with stricter requirements and documentation standards.
VA Guidelines
- 580+ Credit for automated approvals
- Positive Credit History for recent 6-12 months for manual underwriting with on time rent or mortgage payments.
- Residual Income over the VA Requirement – higher Debt to income ratios will require 20% over the VA requirement
- Debt to Income Ratio – automated approvals can go as high as 80%. The limiting factor is residual income. Manual underwriting generally requires under 45-55%, though we can go as high as 65% depending on the scenario.
- Certificate of Eligibility – your Loan Officer will help you with this
- Proof of Income and/or Employment – 2 year work history, 30 Days’ paystubs, and last 2 years’ W2s
- Self Employed – 2 years of personal and business tax returns, profit and loss, and balance sheet
- VA Disability Awards Letter and/or Social Security Awards Letter
- There are other types of income that are eligible.
- If you are active-duty, and your ETS is within 12 months, the VA will either require your military retirement information, you to line up a new job, or you’ll need to intend to reenlist.
- Assets Documented – 2 months bank statements
- Primary Residence only
This list is fairly concise, and unique scenarios will have specific requirements.
Start Your VA Home Loan in Utah Today
Ready to start the home buying process? Get in touch with us today. We can help with VA loans in Utah, Idaho, Colorado, Florida, Texas, Georgia, California, Washington, and Oregon.
Frequently Asked Questions about VA Loans for Buying a Home
What credit score do I need for a VA loan?
Most lenders require a minimum credit score of 580-620, but the VA does not have a minimum credit score (and we don’t either).
Can I get a VA loan if I’m self-employed?
Yes! We specialize in helping self-employed buyers and homeowners. You’ll need to provide additional documentation, like tax returns. While each scenario is unique, we are always solutions focused.
Do VA loans have income limits?
No, VA loans do not have a maximum income limit.
How are VA loan different than conventional loans?
VA loans are guaranteed by the Department of Veteran’s Affairs. Interest rates are better, there is no down payment required, and there is no Private Mortgage Insurance. VA loans has lots of flexibility in areas conventional does not allow.
How long does it take to close an VA loan?
Most VA loans close within 30 days, similar to conventional loans. A good lender can have your loan closed in 2 weeks or less.