A VA loan can let you buy with no down payment and no monthly mortgage insurance. Here’s how it works in Northern Virginia, from eligibility to settlement.
If you’re a veteran, on active duty, or serving in the Guard or Reserve, a VA loan is one of the best tools you have for buying a home. In a market as expensive as Northern Virginia, it can be the difference between buying now and renting for a few more years.
I work with a lot of military families near Fort Belvoir, the Pentagon and Quantico. Here’s what I tell them about VA loans.
What a VA loan is
A VA loan is a mortgage from a private lender, like a bank or mortgage company, that’s backed by the U.S. Department of Veterans Affairs. Because the VA guarantees part of the loan, lenders can offer terms that are hard to match:
- No down payment for most eligible buyers
- No monthly mortgage insurance, which conventional loans usually require when you put down less than 20%
- Competitive interest rates
- Help with closing costs, since sellers can pay some or all of them, within VA limits
Who qualifies
Eligibility depends on how long and how you served. Most veterans and active-duty service members qualify, along with many National Guard and Reserve members and some surviving spouses. You’ll need a Certificate of Eligibility, and most lenders can request it for you online.
Your lender will still look at your credit, income and debts. Many lenders can count your Basic Allowance for Housing (BAH) as income, which can help you qualify.
The VA funding fee
Most VA buyers pay a one-time funding fee. The amount depends on your down payment and whether you’ve used a VA loan before, and you can usually roll it into the loan. If you receive VA disability compensation, you’re generally exempt. Ask your lender to show you the numbers both ways.
Choose a lender who knows VA loans
Not every lender closes VA loans regularly. An experienced VA lender knows the paperwork, the timelines and the appraisal process, and that keeps your settlement on schedule. I’m happy to introduce you to local lenders who work with military buyers all the time.
The VA appraisal
Every VA loan requires an appraisal by a VA-assigned appraiser. It checks two things: that the home is worth what you’re paying, and that it meets the VA’s minimum property requirements. In plain terms, the home needs to be safe, sound and sanitary. Peeling paint on an older home, a roof near the end of its life, or a missing handrail can come up and may need to be fixed before settlement.
If the appraiser expects the value to come in below your contract price, the VA has a process, often called Tidewater, that gives your agent a short window to send in more sales data before the appraisal is final. I keep recent sales ready for exactly that reason. Here’s what happens if an appraisal comes in low.
The termite inspection
VA loans in Virginia usually require a wood-destroying insect inspection, often called a termite inspection. It’s separate from your general home inspection, which is still a good idea. Here’s what buyers should know about home inspections.
Making a strong offer with a VA loan
Some sellers worry that VA offers are harder to close. In my experience, a well-prepared VA buyer is just as strong as anyone else. Here’s how we make your offer stand out:
- A pre-approval from a lender with a solid VA track record
- A call from me to the listing agent explaining your financing and timeline
- Clean, reasonable terms everywhere else in the offer
Moving in, and using it again
VA loans are for homes you’ll live in. You’ll generally need to move in within about 60 days of settlement, though there are exceptions, such as when you’re deployed and your spouse moves in.
The benefit isn’t one-time. You can use it again for a future home, and in some cases you can keep your current home as a rental and still buy with a VA loan at your next duty station. Your lender can check how much entitlement you have left.
When orders take you elsewhere
You can sell, rent the home out, or in some cases let a qualified buyer take over your VA loan, which is called an assumption. A loan with a low rate can be a strong selling point. If the buyer who assumes it isn’t a veteran using their own entitlement, part of yours stays tied to that loan until it’s paid off, so talk with your lender before you agree to one.
Ready to start?
Whether you report next month or next year, I’d love to help. Read my guide to where to live near Fort Belvoir, the Pentagon and Quantico, visit my Military & Relocation page, or send me a note. You can also call or text me at 703-798-4214.
