VA Loans: Complete Guide
Zero down. No mortgage insurance. The best mortgage benefit in America, earned by your service. Mortgages by Channing helps veterans and active duty use it every day.
The Basics
What Is a VA Loan?
A VA loan is a mortgage benefit available to eligible veterans, active duty service members, and surviving spouses, guaranteed by the U.S. Department of Veterans Affairs. It's not a government loan; it's a government guarantee that lets approved lenders like Mortgages by Channing offer better terms than any other mortgage program.
The VA loan benefit includes zero down payment, no private mortgage insurance, competitive interest rates, and limits on closing costs, all earned through military service. The benefit can be used multiple times throughout your life, and once you've earned it, it never expires.
The VA loan is a benefit, not a program
Most people think of VA loans as a special loan type. They're actually a lifetime benefit earned through service, like healthcare or education benefits. You don't apply for the VA loan program; you apply to use your VA entitlement, which you can do more than once and in some cases simultaneously.
Eligibility
Who Qualifies for a VA Loan?
VA eligibility is based on military service history. You must meet minimum service requirements and obtain a Certificate of Eligibility (COE). See the full eligibility guide →
Veterans Eligible
Honorably discharged veterans who served the minimum active duty period. Generally: 90 consecutive days during wartime, or 181 days during peacetime.
Active Duty Eligible
Currently serving members with 90 or more consecutive days of active service qualify. A statement of service letter from your commanding officer is required.
National Guard / Reserves Eligible
Guard and Reserve members with 6 years of service, or 90 days of active duty under Title 10 or 32, qualify. Requirements updated post-2020.
Surviving Spouses Eligible
Un-remarried surviving spouses of veterans who died in service or from a service-connected disability may be eligible. Remarried spouses may qualify in certain circumstances.
Discharge character matters
VA benefits generally require an honorable or general (under honorable conditions) discharge. Other-than-honorable, bad conduct, or dishonorable discharge may disqualify you. If your discharge was upgraded, you may now qualify, Mortgages by Channing can help you review your status.
Loan Requirements
VA Loan Requirements
Beyond service eligibility, lenders apply their own qualification standards. Here's what Mortgages by Channing looks at when processing a VA loan. See the full requirements breakdown →
| Requirement | VA Standard (2025) |
|---|---|
| Credit Score | 620+ typical (no VA minimum) |
| Down Payment | None required, full zero down |
| Max Debt-to-Income | 41% guideline (residual income can offset) |
| Mortgage Insurance | None, ever |
| Loan Limits | No limit with full entitlement (since 2020) |
| Employment History | 2 years consistent or active duty |
| Occupancy | Primary residence only (at time of purchase) |
| Bankruptcy (Ch. 7) | 2-year waiting period after discharge |
| Foreclosure | 2-year waiting period |
| VA Appraisal | Required, VA assigns the appraiser |
Residual income is a VA secret weapon
VA uses a unique "residual income" test in addition to DTI, meaning it looks at how much money is left after all obligations are paid. A borrower with higher income can qualify with a higher DTI if residual income is sufficient. This is why some veterans who were denied elsewhere get approved with VA.
Want To Know What This Looks Like On Your Numbers?
Every scenario is different. A soft credit check tells you where you actually stand, and nothing hits your report until you decide to move forward.
Certificate of Eligibility
VA Certificate of Eligibility (COE)
The Certificate of Eligibility is the VA's official confirmation that you have earned the VA home loan benefit. You need it before your lender can close a VA loan. Full COE guide →
How to Get Your COE
- 1Through your lender (fastest)Mortgages by Channing can pull your COE directly through the VA's WebLGY system in most cases, no action required from you.
- 2Online at VA.govLog in to your VA.gov account and request the COE through the benefits portal.
- 3Mail VA Form 26-1880For cases where online access isn't available or eligibility can't be confirmed digitally.
What You'll Need
- DD-214 for veteransCertificate of Release or Discharge from Active Duty. Keep a copy, you'll need it for many VA benefits.
- Statement of service for active dutySigned by your commanding officer. Includes name, SSN, date of birth, entry date, and years expected to serve.
- NGB Form 22 or 23 for Guard/ReservesNational Guard Report of Separation and Record of Service, or equivalent documentation.
No COE yet? Don't wait to start
You don't need to have your COE in hand before beginning the mortgage process. Mortgages by Channing can often pull it within minutes during your pre-approval. Get started, we'll handle the COE as part of the process.
Loan Costs
VA Funding Fee
VA loans have no monthly mortgage insurance, but they do carry a one-time VA funding fee that funds the program for future veterans. The fee varies based on service type, down payment, and whether it's your first use of the benefit. See the full funding fee guide →
| Borrower Type | 0% Down | 5 to 9% Down | 10%+ Down |
|---|---|---|---|
| First Use (Active/Veteran) | 2.15% | 1.50% | 1.25% |
| Subsequent Use | 3.30% | 1.50% | 1.25% |
| Reserves / Guard (1st use) | 2.15% | 1.50% | 1.25% |
| Service-Connected Disability | Exempt, no funding fee |
10%+ disability rating? You pay no funding fee
Veterans with a service-connected disability rating of 10% or higher are completely exempt from the VA funding fee. This saves thousands. If you're receiving or entitled to VA compensation for a disability, make sure your lender knows before closing, the exemption must be documented upfront.
Compare total cost vs. FHA
Even with the funding fee, VA loans are usually less expensive over time than FHA loans, because there's no monthly mortgage insurance eating into your payment every month. On a $250,000 loan, FHA MIP costs roughly $1,375/year. VA has $0/year in ongoing fees after closing.
Why VA
Benefits of a VA Loan
The VA home loan benefit is the most powerful mortgage program in the country. No other loan type matches its combination of terms, and it was earned through service.
Zero Down Payment
No down payment required, ever. Buy a $400,000 home without putting a dollar toward the purchase price.
No Mortgage Insurance
Unlike FHA and conventional, VA loans carry zero monthly mortgage insurance, saving hundreds per month over the life of the loan.
Competitive Rates
VA loan rates are consistently among the lowest available, often below conventional rates for the same borrower.
Reusable Benefit
The VA benefit can be used multiple times over your lifetime. Pay off one VA loan and your full entitlement is restored.
Limited Closing Costs
VA limits which closing costs lenders can charge. Sellers can also contribute up to 4% of the purchase price in concessions.
Assumable Loans
VA loans are assumable, a qualified buyer (veteran or civilian) can take over your existing rate when you sell, a major selling point in a rising rate environment.
Want To Know What This Looks Like On Your Numbers?
Every scenario is different. A soft credit check tells you where you actually stand, and nothing hits your report until you decide to move forward.
Comparison
VA vs. Conventional Loan
For eligible borrowers, VA almost always wins, but here's the full picture. See the full VA vs Conventional comparison →
| Factor | VA Loan | Conventional |
|---|---|---|
| Down Payment | 0% | 3 to 20% |
| Mortgage Insurance | None, ever | PMI until 20% equity |
| Min. Credit Score | 620 (lender minimum) | 620 to 640 |
| Max DTI | 41% + residual income test | 43 to 50% |
| Loan Limits | None (full entitlement) | Conforming limit ($806,500 in 2025) |
| Funding Fee | One-time (0% if disabled) | No funding fee |
| Rates | Typically lower | Market-based |
| Property Types | Primary residence only | Primary, investment, vacation |
| Best For | Eligible veterans, low savings | High credit, investment buyers |
The Process
How to Apply for a VA Loan
The VA loan process is similar to conventional, with the addition of your COE and a VA-specific appraisal. Mortgages by Channing handles both. Here's what to expect.
Confirm Eligibility & Get Your COE
Mortgages by Channing pulls your COE directly from the VA system in most cases. Have your DD-214 or statement of service ready, it takes minutes when documentation is in order.
Get Pre-Approved
We review income, credit, and residual income requirements. VA pre-approvals typically issue within 24 hours. Your pre-approval letter shows sellers you're a serious, qualified buyer.
Find Your Home & Go Under Contract
Shop for any property you want to use as your primary residence. Negotiate seller concessions, VA allows up to 4% of the purchase price, which can cover your funding fee and closing costs.
VA Appraisal
The VA assigns a licensed VA appraiser to confirm market value and Minimum Property Requirements (MPRs). The appraiser is independent, Mortgages by Channing has no control over who is assigned or the timeline, which typically runs 7 to 14 days.
Underwriting
We submit your full file, income, assets, credit, appraisal, and COE. Most VA files clear underwriting in 3 to 5 business days with complete documentation.
Close on Your Home
Sign closing docs, pay any remaining costs (often minimal after concessions), and get your keys. Average VA close time: 28 to 35 days from completed application.
Ready to Use Your VA Benefit?
Mortgages by Channing works with veterans and active duty every day. Let's get your COE, confirm eligibility, and get you pre-approved.
Common Questions
VA Loan FAQ
Straight answers to the VA loan questions Mortgages by Channing hears most often.
The Application
Apply From Your Phone In Fifteen Minutes
Most veterans put this off because they picture a folder of paperwork and a week of silence. The whole VA application runs on your phone, and it reaches me the minute you submit it.
- Starts with a soft credit check, so your score is never touched
- We pull your Certificate of Eligibility, you don't chase it down
- Upload documents with your phone camera, no scanner needed
- You hear back from Channing, not from a call center queue
If the numbers say wait, I'll tell you that too, and then we make a plan to fix whatever is in the way.
Complete Your Application
Five short steps. Most people finish in about fifteen minutes.
- Tell us what you're looking for
- We request your COE
- Upload your documents
Your pre-approval letter is ready. I sent it to your email and to your agent.
Got your application. I'm reviewing it now and will call you this afternoon.
Real Closings
Real Clients.
Real Closings.
Real families we have helped get from pre-approval to keys in hand.
Find Out Where You
Actually Stand
A soft credit check tells you what you qualify for before anyone pulls hard credit. If the numbers say wait, I will tell you that too, and then we make a plan to fix whatever is in the way.
Check My VA EligibilityMortgages by Channing · 337-476-2623 · Licensed across Louisiana · NMLS #1457759
