February 2, 2026
9 minutes
Paperwork. Confusion. Rejections. If you're a first-time buyer and a veteran, you've probably hit some walls trying to secure a mortgage. Here's the thing-VA loans are specifically designed to tear down those walls.
Unlike conventional loans that pile on the stress, VA loans streamline the process and eliminate major cost barriers. If you’ve served, you deserve a mortgage that works for you, not against you. This guide breaks down everything you need to know-minus the fluff.
Key Takeaways:
- VA loans allow qualified borrowers to purchase a home with 0% down.
- No private mortgage insurance (PMI) is required, lowering monthly costs.
- Competitive interest rates compared to conventional loans.
- Flexible credit and income guidelines make VA loans accessible.
- Veteran protections limit closing costs and junk fees.
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Why VA Loans Are a Game-Changer?
1. $0 Down Payment
Traditional loans demand hefty down payments-sometimes up to 20%. On a $350,000 home, that’s a $70,000 hurdle.
With a VA loan? No down payment is required. That’s not just hype-it’s guaranteed by the Department of Veterans Affairs. Use that cash for moving costs, savings, or home improvements instead.
2. No PMI (Private Mortgage Insurance)
Most buyers who put down less than 20% must pay PMI, adding $100–$300/month to their bill. VA loans skip PMI altogether, offering significant long-term savings.
3. Lower Interest Rates
VA loans typically come with interest rates about 0.25%–0.50% lower than conventional loans (source). Over 30 years, that’s tens of thousands in savings.
4. Flexible Credit Guidelines
VA doesn’t set a minimum credit score-lenders do. Many accept scores as low as 580. Even with past credit hiccups, bankruptcy, or limited history, you could still qualify.
5. Limited Closing Costs
The VA caps what lenders and sellers can charge you, reducing or eliminating junk fees and overcharging. Plus, you can negotiate for sellers to cover your closing costs.
Am I Eligible for a VA Loan?
Many would-be buyers think they’re not eligible-when they are. Here's a simplified breakdown:
Minimum Service Requirements:
Service Type
Minimum Service Required
Active Duty (Wartime)
90 consecutive days
Active Duty (Peacetime)
181 consecutive days
National Guard/Reserves
6 years (or 90 days active Title 10/32)
Surviving Spouse
If death was in service or service-connected
3 Things VA Lenders Actually Look At
- Credit Score: Most lenders want at least 620; some accept 580.
- Debt-to-Income (DTI) Ratio: The VA suggests 41%, but higher DTIs may qualify with strong residual income.
- Stable Income: Two years of steady income is typical, but exceptions exist.
How to Apply for a VA Loan? Step-by-Step
- Choose a VA-Approved Lender
- Find one with VA experience. It makes a difference.
- Get Pre-Approved
- Provide income, credit, and service documentation.
- Work With a VA-Savvy Agent
- Agents who know VA rules (like seller concessions and appraisals) can save you major headaches.
- Make an Offer & Lock Your Rate
- Secure your rate and submit an offer that leverages your VA buying power.
- Appraisal & Underwriting
- VA appraisal ensures fair market value. Underwriting gives the final go-ahead.
- Close and Move In
- Final paperwork, key in hand. Mission complete-with no down payment.
Veterans Can Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together.
Make the Most of Your VA Benefit
Buying your dream home as a veteran shouldn’t drain your savings. With reAlpha Mortgage, you can get a substantial portion of the buyer agent’s commission back-real cash to cover inspections, closing costs, or move-in upgrades.
Here’s how it stacks up:
- 0.5% rebate when you use a reAlpha agent
- 1% rebate when you finance with reAlpha Mortgage
It’s your benefit - maximize it. See how much you can save today at reAlpha Mortgage.
FAQs: VA Loans for First-Time Buyers
Do VA loans take longer to close?
Not typically. Many close in 21–30 days-comparable to conventional loans.
What credit score do I need?
Most lenders want 620+, though some accept 580.
Can I use my VA loan benefit more than once?
Yes. You can reuse it, restore it after selling it, and sometimes even hold two VA loans at once.
Do I have to pay closing costs?
Yes, but you can negotiate for seller-paid costs, and you won’t pay PMI or excessive junk fees.
Can I buy a fixer-upper?
Limited repairs may qualify. For major renovations, ask about VA Renovation Loans.
Is this only for combat veterans?
No. VA loans are available to many active-duty, reserve, and veteran service members and eligible spouses.
Is there a VA loan limit?
No limit to full entitlement. Partial entitlement may be subject to county limits.
Disclosures:
Loan approval is based on individual credit, income, and VA eligibility. Rates and terms vary by lender and market conditions. This is not an offer of credit or commitment to lend. reAlpha Mortgage, LLC | NMLS #1743790 | Equal Housing Lender. In partnership with reAlpha, a homebuying platform that offers substantial commission rebates. Not a real estate or mortgage advisor. Terms and conditions apply.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.