VA Loans — Zero Down Payment Home Financing for Veterans
VA loans through PierPoint Mortgage 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. Call (844) 241-7720 for VA loan pre-approval.
Overview
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.
Eligibility
VA Loan Eligibility and Requirements
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.
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 PierPoint Mortgage pull it on your behalf.
Credit Score
The VA does not set a minimum credit score, but most lenders require at least 580 to 620. PierPoint Mortgage works with borrowers across a range of credit profiles.
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.
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.
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.
Process
How VA Loans Work
1
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.
2
Get Pre-Approved
Submit income documentation, credit authorization, and your COE to PierPoint Mortgage. Your pre-approval letter establishes your purchasing power with sellers.
3
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.
4
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.
5
Underwriting
Your PierPoint loan officer submits the complete file to underwriting for verification of income, assets, credit, and property eligibility.
6
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.
Advantages
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.
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.
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.
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 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.
Ideal Borrower
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.
If you are unsure about your eligibility, PierPoint Mortgage can pull your Certificate of Eligibility at no cost during the pre-approval process.
Comparison
How Does This Compare?
FAQ
Frequently Asked Questions
Do I need a down payment for a VA loan?
No. VA loans offer 100% financing with zero down payment for borrowers with full entitlement. You may choose to put money down to reduce the funding fee or secure a lower interest rate, but it is not required.
What is the VA funding fee?
The funding fee is a one-time charge that funds the VA loan program. First-time users with no down payment pay 2.15% of the loan amount. The fee decreases with larger down payments and increases slightly for subsequent uses. Disabled veterans and surviving spouses are exempt.
Can I use a VA loan more than once?
Yes. VA loan entitlement is reusable. Once you sell a home purchased with a VA loan and the previous loan is paid off, your full entitlement is restored. You can also have two VA loans simultaneously if you have remaining entitlement.
Are there VA loan limits?
For veterans with full entitlement, there is no loan limit. For those with reduced entitlement from a previous VA loan still in use, county-level conforming loan limits apply to determine the maximum no-down-payment amount.
Can a surviving spouse get a VA loan?
Yes. Unremarried surviving spouses of veterans who died in service or from a service-connected disability are fully eligible for VA home loan benefits, including zero down payment and no funding fee.
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