VA Loans

Two features do most of the work. Eligible borrowers can usually finance without a down payment, and the VA prohibits monthly mortgage insurance entirely — so the payment on a VA loan is frequently lower than on a conventional loan of the same size, even before rate is considered.

In place of monthly insurance the VA charges a one-time funding fee, and this is where a service-connected disability rating matters more than most veterans realise. Any veteran receiving compensation for a service-connected disability is exempt from the funding fee entirely. The exemption turns on whether the rating is compensable rather than on how high it is — a compensable rating at the lowest tier exempts you just as completely as a much higher one. Purple Heart recipients serving on active duty and certain surviving spouses are also exempt.

Two points worth knowing. First, if a rating is awarded retroactively after you close, you may be entitled to a refund of a funding fee you already paid — a refund many veterans never claim because nobody tells them. Second, your Certificate of Eligibility states your exemption status, so we confirm it before quoting rather than assuming either way.

Entitlement can also be restored and, in some circumstances, used for more than one loan at a time. That is among the most misunderstood parts of the program and is worth a conversation rather than a calculator.