What is a VA Purchase Loan?
A VA (Veterans Affairs) Loan is a government-backed mortgage designed to help active-duty service members, veterans, and eligible surviving spouses buy a home with no down payment and no private mortgage insurance (PMI). VA loans offer
competitive interest rates, flexible credit requirements, and reduced closing costs, making homeownership more affordable for those who have served. Unlike conventional or FHA loans, VA loans are guaranteed by the U.S. Department of Veterans Affairs, allowing lenders to provide better terms and easier qualification requirements. This exclusive benefit rewards military members and their families for their service.
How Does a VA Purchase Loan Work?
A VA loan requires no down payment, making it one of the most affordable home loan options available. It also has
no PMI, saving borrowers hundreds of dollars each month. Additionally, VA loans have more lenient credit and debt-to-income (DTI) requirements compared to conventional loans.
Examples of How a VA Loan Works:
Example 1: First-Time Homebuyer with Zero Down
A veteran purchases a $300,000 home with zero down payment. They secure a fixed-rate 30-year VA mortgage with a competitive interest rate. No private mortgage insurance (PMI) is required, reducing monthly payments.
Example 2: Veteran with Credit Challenges
A buyer with a 580 credit score qualifies for a VA loan with no down payment. They have a higher debt-to-income (DTI) ratio, but VA guidelines allow more flexibility.
Example 3: Military Family Buying a Second Home with a VA Entitlement
A service member who has already used a VA loan in the past reuses their remaining VA entitlement to purchase a new home.They still qualify for zero down payment and no PMI.
Qualifications for a VA Purchase Loan
✅ Credit Score Requirements:
No official minimum, but most lenders require a 580-620+ credit score.Higher scores (680+) may qualify for even lower interest rates.
✅ Down Payment & PMI:
$0 down payment required for most borrowers.No private mortgage insurance (PMI) required, saving thousands over the life of the loan.
✅ Debt-to-Income (DTI) Ratio:
Most lenders allow a DTI of 41%-50%, depending on other financial factors.
✅ VA Loan Eligibility Requirements:
Active-duty service members with at least 90 continuous days of service.Veterans who meet length-of-service requirements.Surviving spouses of service members who died in the line of duty or due to a service-related disability.
✅ VA Funding Fee:
A one-time VA funding fee (0.5% - 3.3%) applies but can be rolled into the loan.Waived for disabled veterans and eligible surviving spouses.
✅Property Type Eligibility:
Can be used for single-family homes, condos, townhomes, and multi-unit properties (up to 4 units).Must be a primary residence – not available for investment properties.
Is a VA Purchase Loan Right for You?
A VA Loan is one of the best home financing options available for veterans, active-duty service members, and their families. With zero down payment, no PMI, and lower interest rates, it provides an affordable path to homeownership.
Fill out our short form to get started!
Have a questions?
Speak to our mortgage experts today!
Acre Mortgage is an Equal Housing Lender. We fully comply with the Equal Credit Opportunity Act (ECOA) and all other Federal regulations. All applicants applying for credit from Acre Mortgage will never be discouraged on on the basis of race, color, religion, national origin, sex, military status ,marital status, age, or because you get public assistance. All information we request is voluntary, and will be kept confidential. For more information on the ECOA, please visit:
Copyright 2025. | Acre Mortgage | All Right are Reserved.