The VA loan is one of the most powerful homebuying tools available — and one of the most underused. If you've served in the military or are currently serving, this benefit could save you tens of thousands of dollars compared to a conventional loan. Here's everything you need to know.
VA Loan Benefits at a Glance
Zero Down Payment
Buy with no money down — the only major loan program that allows this without income limits.
No Private Mortgage Insurance
Conventional loans require PMI under 20% down. VA loans never charge PMI. Ever.
Competitive Interest Rates
VA rates are consistently lower than conventional rates — often by 0.25–0.5%.
Flexible Credit Requirements
Most VA lenders accept 580–620 minimum. The VA itself doesn't set a minimum credit score.
Limited Closing Costs
The VA restricts what fees lenders can charge veterans. Sellers can pay up to 4% of closing costs.
Reusable Benefit
You can use your VA benefit multiple times throughout your life — it's not a one-time thing.
Who Qualifies for a VA Loan?
| Service Category | Minimum Service Requirement |
|---|---|
| Active Duty | 90 continuous days during wartime; 181 days during peacetime |
| National Guard / Reserves | 6 years of service, or 90 days active duty under Title 32 |
| Discharged Veterans | Meets above minimums with honorable or general discharge |
| Surviving Spouses | Unremarried spouse of veteran who died in service or from service-connected disability |
Not sure if you qualify? The first step is obtaining your Certificate of Eligibility (COE). I can pull your COE for you directly through the VA portal — takes minutes. Contact Jeff to get started.
Understanding VA Entitlement
Entitlement is the VA's guarantee to the lender. There are two types:
Basic Entitlement
$36,000 — but this rarely limits your actual purchase power. The VA guarantees 25% of the conforming loan limit in your county, which in most of Illinois is $766,550 (meaning $191,637.50 in VA entitlement).
Bonus (Second-Tier) Entitlement
If you've used your VA loan before, you may have remaining entitlement. You can even have two VA loans simultaneously in some circumstances.
The VA Funding Fee
VA loans don't have PMI, but they do have a one-time funding fee paid at closing (or rolled into the loan):
- First use, 0% down: 2.15% of the loan amount
- First use, 5% down: 1.5%
- First use, 10%+ down: 1.25%
- Subsequent use: 3.3% (0% down) — reason to make a small down payment on second-time use
- Funding fee is waived for veterans with a service-connected disability rating of 10% or higher
VA Loan vs. Conventional: The Real Math
On a $400,000 purchase:
- Conventional 5% down: $20,000 down + PMI of ~$150/month until 20% equity
- VA 0% down: $0 down + 2.15% funding fee ($8,600, often rolled in) + $0 PMI = lower monthly payment even with no down payment
Over 5 years, the VA loan saves most buyers $10,000–$15,000 in PMI alone.
You Earned This Benefit
Get a VA loan quote across 100+ wholesale lenders.
Jeff specializes in VA loans and will find you the best rate and terms available — with zero pressure and full transparency on every fee.
Get My VA Loan QuoteCommon VA Loan Myths
- Myth: VA loans take longer to close. With an experienced VA lender, they close on the same timeline as conventional — often faster.
- Myth: Sellers won't accept VA offers. Not true in most markets. Educating the listing agent on VA strength usually resolves this.
- Myth: You can only use your VA benefit once. You can use it multiple times, and even have multiple VA loans simultaneously.
- Myth: You need perfect credit. The VA doesn't set a minimum score. Many VA lenders work with scores in the 580–620 range.
Ready to Use Your VA Benefit?
The process starts with pulling your Certificate of Eligibility — which I can do for you directly. From there, we'll run your numbers across every VA lender we work with and find the best rate for your specific situation. Let's talk.