VA Loans
Zero Down Payment Home Financing for Veterans
VA loans through Howell Mortgage Group offer eligible veterans, active-duty service members, and surviving spouses access to home financing with zero down payment, no private mortgage insurance, and competitive interest rates guaranteed by the U.S. Department of Veterans Affairs. These specialized mortgages honor military service by removing the financial barriers that make homeownership difficult. As a veteran myself, I'm passionate about helping other veterans get their dream homes.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the United States Department of Veterans Affairs and issued by private lenders such as PierPoint Mortgage. The VA guarantee covers a portion of the loan, reducing the lender’s risk and allowing more favorable terms for eligible borrowers.
The most significant benefit of a VA loan is the ability to purchase a home with zero down payment. Combined with no private mortgage insurance requirement and typically lower interest rates than conventional financing, VA loans offer the most cost-effective path to homeownership for those who qualify.
VA loans are available for primary residences only, including single-family homes, condos in VA-approved complexes, and multi-unit properties up to four units where the borrower occupies one unit. Both purchase and refinance transactions are eligible, including the VA Interest Rate Reduction Refinance Loan (IRRRL) for streamlined rate reductions.
Requirements and Qualifications
Service Requirements
Active-duty members with 90 days of continuous service during wartime or 181 days during peacetime. Veterans must have served the minimum active duty period and received anything other than a dishonorable discharge.
Income and DTI
Stable income and a debt-to-income ratio at or below 41% is the VA guideline. Residual income, the amount left after all obligations, is also evaluated and must meet regional thresholds.
Certificate of Eligibility
A COE proves to lenders that you meet VA loan requirements. Apply online through the VA eBenefits portal, by mail, or let us pull it on your behalf.
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VA Funding Fee
A one-time fee of 1.25% to 3.3% of the loan amount, depending on down payment and whether it is your first VA loan use. Disabled veterans and surviving spouses are exempt.
Credit Score
The VA does not set a minimum credit score, but most lenders require at least 580 to 620. Howell Mortgage Group works with borrowers across a range of credit profiles.
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Surviving Spouses
Unremarried surviving spouses of veterans who died in service or from a service-connected disability are eligible for VA loan benefits with no down payment and no funding fee.
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How VA Loans Work
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Obtain your COE
Request your Certificate of Eligibility through the VA portal, your lender, or by mail. This document confirms your entitlement and is required before loan processing begins. -
Get Pre-Approved
Submit income documentation, credit authorization, and your COE to Howell Mortgage Group. Your pre-approval letter establishes your purchasing power with sellers. -
Find Your Home
Work with your agent to locate eligible primary residences. The property must meet VA minimum property requirements for safety, structural soundness, and sanitation. -
VA Appraisal
A VA-assigned appraiser evaluates the property to ensure it meets the VA minimum property requirements and that the purchase price aligns with fair market value. -
Underwriting
Your loan officer submits the complete file to underwriting for verification of income, assets, credit, and property eligibility. -
Closing
Sign closing documents, pay the funding fee (which can be financed into the loan), and take ownership of your home with no down payment and no PMI.
Benefits of VA Loans
Zero Down Payment
Purchase a home with nothing down. No other major loan program offers 100% financing without income restrictions or geographic limitations.
Limited Closing Costs
The VA limits the types of closing costs veterans can be charged, and sellers can pay up to 4% of the sales price toward the buyer’s closing costs.
No Private Mortgage Insurance
VA loans never require PMI, saving borrowers $100 to $300 per month compared to conventional loans with less than 20% down.
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No Loan Limits for Full Entitlement
Veterans with full entitlement have no VA loan limit, meaning you can borrow whatever the lender approves without a down payment.
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Competitive Interest Rates
VA loan rates are consistently 0.25% to 0.50% lower than comparable conventional rates because the government guarantee reduces lender risk.
Who Qualifies for a VA Loan?
VA loan eligibility extends to active-duty service members, veterans, National Guard members, Reservists, and certain surviving spouses. The key factor is meeting the minimum service requirement, which varies based on when and how you served.
Veterans who served at least 90 consecutive days during wartime or 181 consecutive days during peacetime meet the basic service threshold. National Guard and Reserve members qualify after six years of service or 90 days of activation under Title 10 orders.
Surviving spouses of veterans who died in the line of duty or from a service-connected disability are also eligible, provided they have not remarried before age 57 or before December 16, 2003. Disabled veterans are exempt from the VA funding fee, making their loan costs even lower.
How Does This Compare?
Feature | VA | FHA | Conventional |
|---|---|---|---|
Property Types | Primary only | Primary only | Primary, 2nd, investment |
Funding Fee | 1.25%-3.3% | 1.75% upfront MIP | None |
Credit Score | No VA minimum | 580 | 620 |
Interest Rates | Lowest available | Moderate | Depends on credit |
Mortgage Insurance | None | MIP for life of loan | PMI (removable) |
Down Payment | 0% | 3.5% | 3%-20% |