A powerful home financing benefit earned through service — zero down payment, no private mortgage insurance, and some of the most competitive rates available for eligible veterans, active duty service members, and surviving spouses.
A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and available to eligible veterans, active duty service members, National Guard and Reserve members, and certain surviving spouses. The VA home loan program was established by Congress in 1944 as part of the original GI Bill to help returning service members finance homes without a down payment or mortgage insurance.
Like FHA loans, VA loans are not made directly by the VA. Instead, private lenders like Saffron Premier Mortgage originate the loans, and the VA guarantees a portion of each loan, allowing lenders to offer more favorable terms than would otherwise be available. Because the VA guarantees the loan against default, lenders can offer zero down payment financing and eliminate the requirement for private mortgage insurance.
The VA loan benefit is not a one-time benefit — eligible borrowers can use their VA benefit multiple times, and in some cases can have more than one VA loan simultaneously.
Eligible borrowers with full VA entitlement can purchase a home with no down payment — one of the only zero-down loan options available without income restrictions.
VA loans require no private mortgage insurance, which can save hundreds of dollars per month compared to conventional or FHA loans with similar down payments.
VA loans often carry lower interest rates than comparable conventional loans due to the government guarantee, resulting in lower monthly payments.
The VA limits the fees that lenders can charge to VA borrowers, protecting veterans from excessive closing costs. Sellers can also contribute to closing costs.
VA loans are assumable by a future buyer — including non-veterans — subject to VA and lender approval. This can be a significant advantage in a rising rate environment.
The VA provides assistance to veterans who experience financial hardship, including advocacy and guidance if you have trouble making payments.
Eligibility for a VA home loan is based on your military service history. Generally, you may be eligible if you are:
To confirm your eligibility and obtain your Certificate of Eligibility (COE), you can apply through the VA's eBenefits portal, request it from the VA directly, or work with your loan officer at Saffron Premier Mortgage — we can often obtain your COE electronically on your behalf.
Even if you have used your VA benefit before, you may still be eligible for another VA loan. Contact us to discuss your entitlement and options.
While VA loans do not require a down payment or PMI, most VA borrowers are required to pay a one-time VA funding fee at closing. This fee helps fund the VA loan program and reduces the cost to taxpayers.
| Borrower Type | Down Payment | First Use | Subsequent Use |
|---|---|---|---|
| Active duty / Veteran (purchase) | 0% | 2.15% | 3.30% |
| Active duty / Veteran (purchase) | 5% – 9.99% | 1.50% | 1.50% |
| Active duty / Veteran (purchase) | 10%+ | 1.25% | 1.25% |
| Reserves / National Guard (purchase) | 0% | 2.15% | 3.30% |
| VA Cash-Out Refinance | N/A | 2.15% | 3.30% |
| VA IRRRL (Interest Rate Reduction) | N/A | 0.50% | |
Funding fee exemptions: Veterans receiving VA disability compensation, surviving spouses of veterans who died in service or from service-connected disability, and certain other categories are exempt from the funding fee. The funding fee can typically be financed into the loan amount.
Our loan officers will guide you through the VA loan process from eligibility check to closing.
Get a Free Estimate Now