VA also supports cash-out refinances and the IRRRL (VA Streamline) for existing VA borrowers. The question is never “can VA refinance” — it is whether staying in VA, or moving to another structure, produces the better long-term cost.
Eligible VA purchase financing can be available with 0% down when you have full entitlement. That is the figure most veterans have heard — and it is still how many VA purchases are structured in 2026, when occupancy and the rest of the file support it.
Partial entitlement can change that. If a prior VA loan is still outstanding, remaining guaranty is measured against the county conforming limit, and a down payment may be required. Putting 5% or 10% down is not wasted money — it can reduce the funding fee even when 0% is available.
No down payment is only one piece. You still need funds for closing costs, prepaid items, and any repairs the VA appraisal flags. Seller credits and gift funds can fill part of that gap when guidelines allow:
Think VA is only for people who cannot put anything down? Not necessarily.
Some borrowers choose VA because there is no monthly mortgage insurance — even when they could write a larger check. The down payment is not the whole story.
VA financing is a benefit tied to service, not a first-time-buyer nickname. Veterans with qualifying active-duty service, many currently serving members, certain National Guard and Reserve members, and surviving spouses who meet VA rules can all be eligible.
The document that proves it is a Certificate of Eligibility. We pull the COE early so entitlement — full or partial — is known before you write an offer. Character of discharge and service length still have to fit the published rules.
You also do not have to use VA just because you can. Eligible conventional and FHA programs exist. The useful question is which structure costs less and qualifies more cleanly — not which nickname sounds like it was designed for you.
The VA does not publish a minimum. Lenders still overlay. Residual income still decides.
The numbers most people quote — 580, 620 — come from lender overlays, not a VA scoreboard. Automated underwriting and residual-income tables evaluate the pattern: payment history, debts, leftover income after housing, and the property.
It does not mean anyone at 580 will close. It does not mean a 740 file should skip VA. A lower score can still affect pricing, overlays, and whether the file receives an acceptable finding.
VA can be more flexible. It is not indifferent.
If you have been told you “need FHA” as a veteran, it is worth a second look at the actual file — including whether VA would price better once residual income is in the system.
VA requirements are a stack of findings, not a poster on the wall. Entitlement, residual income, occupancy, the property’s condition, and lender overlays all interact. What follows is how we explain that stack to real people — without pretending every file is judged the same way.
Most VA loans include a one-time funding fee. There is no monthly PMI. The fee is commonly 2.15% on a first-use purchase with less than 5% down, and 3.30% on a subsequent-use purchase with less than 5% down. It is often financed into the loan. Putting 5% or 10% down lowers the percentage.
Veterans who receive VA disability compensation, certain surviving spouses, and some active-duty Purple Heart recipients are typically exempt. That exemption is one of the cleanest monthly-payment advantages in the market.
The funding fee is not automatically a reason to avoid VA, and it is not automatically worse than FHA MIP or conventional PMI. The comparison is the total cost over the years you actually expect to keep the mortgage — including the fact that VA has no monthly insurance premium.
The goal isn’t simply to avoid a fee. The goal is to find the mortgage structure with the best overall financial outcome.
VA home financing is not a purchase-only product. Shelton Mortgage Team structures VA loans for buying and for refinancing. A refinance should be judged against your full picture — payment, remaining funding fee, cash needed, how long you will keep the loan — not the interest rate in isolation.
VA purchase loans can serve first-time buyers, repeat buyers, and owner-occupied 1–4 unit homes — when entitlement, occupancy, and the property meet VA guidelines and lender overlays.
An IRRRL refinances an existing VA loan into a new VA loan with less documentation when the payment or rate improves. It is not a cash-out tool.
A VA cash-out refinance lets eligible homeowners convert equity into cash for improvements, debt consolidation, or other eligible goals — subject to occupancy and entitlement.
Eligible VA financing can cover single-family homes, condos in eligible projects, certain manufactured homes, and 2–4 unit properties — when you occupy the home as your primary residence. Occupancy is not optional on a VA purchase. That is the line between this program and conventional.
Borrowers with full entitlement are not capped by a VA county loan limit. You can often finance above conforming amounts with 0% down, subject to the lender and the appraisal. Partial entitlement is a different math problem — remaining guaranty is measured against the FHFA conforming limit for that county.
2026 FHFA conforming limit used when calculating remaining entitlement in most counties. Full entitlement is not capped at this number.
2026 high-cost conforming ceiling. Partial-entitlement math uses the applicable county figure — not a national VA cap.
If you still have a VA loan outstanding, we will calculate remaining entitlement before you write the offer — and compare a down payment, a restoration, or conventional if the numbers need it.
VA loans can allow the seller to pay the buyer’s allowable closing costs. Separate seller concessions — items that are not typical closing costs — are generally capped at 4% of reasonable value. Gift funds from an eligible donor can help with remaining cash to close. That distinction matters in negotiations.
This is the current general VA framework and can differ by case, occupancy, and lender overlays. Limits are a ceiling, not a promise the seller will contribute.
A VA loan may be worth a serious look if any of the following sounds like you. None of this is a guarantee of approval.
VA is not automatically available — and it is not automatically best on every file. Conventional is the path for a second home or investment property. FHA can be the cleaner approval when VA eligibility is not there. USDA can make sense in eligible geographies. Jumbo is simply the tool when a non-VA structure is needed above conforming limits.
The goal isn’t to put you into a VA loan. The goal is to find the financing strategy that makes the most sense for you.
This is the comparison eligible borrowers ask for most. Neither column wins in every file. Monthly cost often comes down to mortgage insurance — VA has none — and whether occupancy and entitlement fit.
Neil Shelton and the Shelton Mortgage Team educate first, then compare. We have access to 160+ wholesale lenders, which means a VA purchase or refinance is one option on the table — next to conventional, FHA, USDA, jumbo, and other structures — not the only product we know how to spell.
You don’t need to know which loan you need before you call us. That’s our job.
We will not promise guaranteed approval, the lowest rate in America, or savings we have not measured. We will put the options in plain language and help you choose on purpose.
You don’t have to figure out which mortgage program is right for you on your own. We’ll compare VA with the available alternatives and help you understand the numbers before you make a decision.
Neil Shelton, NMLS 1668076 | Edge Home Finance, NMLS 891464. Equal Housing Opportunity.
Information on this page is for general education and is not a commitment to lend. Approval, rates, terms, program availability, down payment options, credit evaluation, funding fee, seller concessions, entitlement, and occupancy rules are subject to underwriting, lender guidelines, property eligibility, automated or manual underwriting findings, and market conditions. Guidelines can differ between the Department of Veterans Affairs, participating lenders, and individual wholesale overlays. VA is a government guaranty program and is not affiliated with or endorsed by this website beyond the educational description of available loan types.
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