Last updated: October 18, 2025 • Author: Michael Wolff (NMLS #239403) • Contact
This page is the plain-English VA playbook. We’ll cover what truly matters, show where buyers and agents get tripped up (entitlement math, appraisal/MPRs, and concessions), and give you a side-by-side comparison when you’re ready to run the numbers.
Eligibility & COE
Most qualified service members, Veterans, and some surviving spouses can use VA financing. We’ll help request your Certificate of Eligibility (COE), verify service, and confirm any funding-fee exemption.
Back to top ↑Entitlement & Restoration
Full vs. remaining entitlement determines zero-down capability and jumbo thresholds. If you’ve used VA before, we’ll check prior usage and options to restore entitlement after payoff or sale.
Back to top ↑Residual Income vs. DTI
VA emphasizes residual income by region and family size. High DTIs can still be approved when residual income and the overall file are strong—this is a key difference from conventional overlays.
Back to top ↑Funding Fee & Waivers
Most VA loans include a one-time funding fee that varies by first-use vs. subsequent-use and down payment. Service-connected disability can waive the fee entirely. We’ll confirm this directly with the VA.
Back to top ↑Appraisal, Tidewater & MPRs
VA appraisals usually track conventional timelines in a market. If value looks short, the Tidewater process lets us submit comps before the final report. MPRs (Minimum Property Requirements) focus on safety, soundness, and sanitation—manufactured homes and some condos need extra checks.
Turn times & fees: Both are set by the VA (not by individual lenders). See the official VA Appraiser Fee & Turn-Time Schedule: VA fee schedule & timelines.
Back to top ↑Seller Concessions (the 4% Rule)
Sellers can pay all reasonable buyer closing costs (not capped by VA) and may also provide seller concessions up to 4% of the loan amount. Concessions can include the funding fee, prepaid taxes & insurance, paying off debts, or buying down the interest rate. The 4% cap does not include ordinary closing costs or typical discount points to buy down the rate. All of this is negotiable.
Back to top ↑IRRRL (Streamline Refinance)
These require 210 day seasoning and 6 payments made on the current mortgage, no recent lates, and a Net Tangible Benefit of a rate drop of at least 0.5%. Appraisals aren’t needed and neither are income documents or employment verification; costs can be rolled in subject to program rules.
Back to top ↑When VA beats Conventional
No monthly PMI, lower rates, and flexible residual-income standards often make VA more affordable at lower down payments. We’ll run real-world numbers (taxes/insurance/HOA) so you can decide with confidence.
Back to top ↑Common VA Loan Myths (and the reality)
Myth: VA loans are denied at a higher rate.
Myth: VA loans are expensive for Veterans.
Myth: Only weak financial profiles use VA loans.
Myth: FHA or Conventional is usually better for Veterans.
Myth: VA appraisals are slow and come in low.
Myth: Sellers must pay all closing costs.
Myth: VA loans can only be used once.
Myth: You can’t have more than one open VA loan at a time.
Myth: Buyers don’t have to pay closing costs on VA loans.
VA Loan FAQs
What is the minimum credit score for a VA loan?
VA has no universal minimum. Lenders set overlays; many approvals start around the mid-600s when the overall file is strong and AUS approves.
Are there income limits or strict DTI caps?
VA focuses on residual income rather than a hard DTI cap. High DTIs can still be approved if residual income and compensating factors check out.
Can I use a VA loan more than once?
Yes. You can reuse remaining entitlement or restore it after payoff/sale (with special cases for one-time restoration).
How long do VA appraisals take, and what is Tidewater?
Turn times generally mirror conventional in a given market. Tidewater lets us submit comps if value looks short before the final report.
How do VA seller concessions work (and what’s the 4% rule)?
Sellers may pay reasonable buyer closing costs plus “seller concessions” up to 4% of the loan amount (e.g., funding fee, prepaids, certain debts). The 4% cap does not include ordinary closing costs or typical discount points. All of this is negotiable.
Can I use a VA loan for renovations or fixer-uppers?
Possible with specific programs and overlays. Many buyers use standard VA for move-in-ready and consider a refi later for repairs if needed.
Do VA loans have mortgage insurance?
No monthly PMI. Most loans carry a one-time funding fee (waived for eligible disabilities), which can sometimes be covered via concessions.