VA home loans are a mortgage benefit available to eligible Veterans, active-duty service members and certain surviving spouses. Qualified borrowers may be able to purchase a primary residence with no down payment and no monthly private mortgage insurance. Lori Smolke, Mortgage Loan Officer with Fairway Home Mortgage, NMLS #916797, helps eligible borrowers understand their VA home loan benefit, entitlement and financing options from pre-approval through closing.
Lori Smolke understands how to make the process smooth and straightforward, ensuring every step aligns with VA lending guidelines. Whether you’re purchasing your first home or refinancing an existing one, Lori provides clear guidance and dependable service. She takes pride in helping those who’ve served our country build financial stability and achieve lasting homeownership.
A VA-backed home loan is made by a private lender, such as a mortgage company or bank, while the Department of Veterans Affairs guarantees a portion of the loan. That guaranty can allow lenders to offer eligible borrowers favorable financing terms, including the possibility of purchasing a home without a down payment.
VA home loan eligibility is generally based on military service history and duty status. Veterans, active-duty service members, members of the National Guard or Reserve, and certain surviving spouses may qualify. A Certificate of Eligibility, or COE, confirms whether you meet the VA’s service requirements for the benefit.
Having a COE doesn’t automatically mean the mortgage is approved. Borrowers still need to meet applicable lender and VA requirements for income, credit, occupancy and the property being financed.
A Certificate of Eligibility, commonly called a COE, verifies that you meet the military-service requirements to use the VA home loan benefit. It also provides information about your available VA entitlement.
You don’t necessarily need to locate your COE before talking with Lori. A lender may be able to obtain it as part of the mortgage process.
Eligible borrowers may be able to purchase with no down payment.
Whether a down payment is required depends on factors including entitlement, the purchase price, the appraised value and the borrower’s overall financing situation. Borrowers with full VA entitlement generally aren’t subject to a county VA loan limit, although the lender still determines how much the borrower qualifies to finance.
No VA loan limit doesn’t mean unlimited borrowing.
A lender still evaluates:
VA entitlement is the amount of the loan guaranty the Department of Veterans Affairs makes available on behalf of an eligible borrower. It isn’t a cash benefit or the maximum mortgage amount you can borrow. Your COE helps a lender determine how much entitlement is available.
If you’ve used a VA loan before and haven’t restored all of your entitlement, you may still have remaining entitlement available. Your lender can calculate how that affects your next purchase and whether a down payment may be necessary.
Yes. Using a VA loan once doesn’t necessarily use up the benefit forever.
Many eligible borrowers can use their VA home loan benefit again. Depending on what happened with a previous VA-financed property and loan, entitlement may be restored or remaining entitlement may still be available.
Used a VA loan before? Lori can review your COE and remaining entitlement.
The VA funding fee is a one-time fee charged on many VA-backed and VA direct home loans. It helps support the VA loan program because the program generally doesn’t require a down payment or monthly mortgage insurance.
The amount can depend on the type of loan, whether you’ve used the VA loan benefit previously and how much you put down. The fee can generally be paid at closing or financed into the loan.
Who May Be Exempt From the VA Funding Fee?
Some borrowers are exempt from the VA funding fee, including certain Veterans receiving or entitled to receive VA compensation for a service-connected disability, certain surviving spouses receiving Dependency and Indemnity Compensation, and qualifying active-duty Purple Heart recipients.
Lori can help determine the funding-fee status shown in your VA eligibility information.
For purchases and construction loans, VA currently lists:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Funding-fee rules may change. Verify your current fee or exemption with Lori before relying on these figures.
VA-backed loans do not require monthly PMI or FHA-style mortgage insurance premiums.
That can be an important difference when comparing VA financing with certain conventional or FHA options. A VA funding fee may still apply unless the borrower qualifies for an exemption.
The Department of Veterans Affairs does not set one universal minimum credit score for VA home loan eligibility. Individual lenders may establish their own credit requirements, and approval also considers income, debts, payment history and the overall loan profile.
If you’ve been told your credit prevents you from using your VA benefit, it’s worth having Lori review the full situation before assuming VA financing isn’t available.
Qualified borrowers may be able to use VA-backed financing to:
The property generally must be intended as the borrower’s primary residence.
Potentially, yes. Eligible borrowers may use a VA-backed purchase loan to buy a property containing up to four units, subject to VA and lender requirements. The borrower generally must occupy the property as a primary residence.
If you’re considering living in one unit and renting the others, Lori can explain how current VA qualifying and occupancy requirements apply to the property you’re considering.
VA-backed purchase loans require a VA appraisal to establish the property’s value and evaluate applicable VA property requirements. A VA appraisal is not the same thing as a home inspection, and buyers may still choose to obtain a separate home inspection.
What Happens if the VA Appraisal Comes in Low?
If the appraised value is below the contract price, the transaction may need to be re-evaluated. Depending on the circumstances, the buyer and seller might renegotiate, additional supporting sales data may be considered, or the buyer may choose to pay a difference subject to applicable requirements.
Seller credits may be available toward certain VA closing costs. VA distinguishes ordinary closing-cost credits from seller concessions, and seller concessions are generally limited to 4% of the property’s reasonable value. Closing cost credits and seller concessions combined may be above the 4%. This can be a bit confusing…Lori can help clarify for you and your agent before negotiating on a property.
| VA | Conventional | |
|---|---|---|
| Zero-down option | May be available | Generally not the standard option |
| Monthly mortgage insurance | No VA PMI/MIP | May apply depending on down payment/LTV |
| Funding fee | May apply | No VA funding fee |
| Military eligibility required | Yes | No |
| Primary residence | Standard VA purchase use | Primary, second home or investment may be available depending on program |
| Can reuse benefit | Often yes | Not applicable |
| Best choice | Depends on borrower | Depends on borrower |
For an eligible borrower, VA financing can be extremely powerful—but that doesn’t mean every VA-eligible borrower should automatically choose it. Lori can compare the payment, cash needed to close, financing costs and long-term goals before you decide.
Review your goals, service history, income, debts and anticipated purchase.
Determine your VA eligibility and available entitlement.
Review the mortgage amount and payment that fit your financial situation.
Work with your real estate agent to find an eligible property.
Your lender begins the full loan process.
An approved appraiser evaluates the property’s value and applicable VA property requirements.
Complete required documentation and loan conditions.
Review final figures, sign documents and complete your home purchase.
Is a VA loan only for first-time homebuyers?
No. Eligible repeat homebuyers may also use VA financing.
Can I use my VA benefit more than once?
Yes, potentially. Available entitlement and restoration rules determine how the benefit can be used again.
Does a VA loan require a down payment?
Qualified borrowers with sufficient entitlement may be able to purchase with no down payment.
Does a VA loan have PMI?
No. VA-backed loans don’t require monthly PMI or FHA-style mortgage insurance premiums.
Does the VA set a minimum credit score?
The VA itself does not establish one universal minimum score, though lenders may have their own requirements.
Can I use VA financing for an investment property?
A standard VA purchase loan generally requires the borrower to occupy the property as a primary residence.
Can I buy a multifamily property?
Potentially. Eligible VA financing may be used for a property containing up to four units when program requirements are met.
Do I need my COE before calling a lender?
No. You can begin the conversation before obtaining it, and a lender may be able to assist with obtaining your COE.
What if I’ve already used my VA loan benefit?
You may still have remaining entitlement or may be eligible to have prior entitlement restored.
Is VA always better than conventional?
No. The best mortgage depends on your full financial situation and goals.
Don’t assume you need a down payment.
One of the biggest benefits of VA financing is the possibility of buying without one.
Don’t assume using your benefit once means it’s gone.
VA entitlement can often be reused.
A VA appraisal isn’t the same thing as an inspection.
They serve different purposes.
Don’t let myths about VA offers discourage you.
An experienced lender and Realtor who understand VA financing can make a big difference in how the offer and loan are handled.
Ask questions before you start shopping.
Understanding your entitlement, funding fee status and buying power before making an offer can save a lot of confusion later.
Experience
Mortgage lending since 1993.
Straight Answers
VA terminology can be confusing. Lori explains entitlement, COEs, funding fees and loan options in plain English.
Communication
Both you and your real estate agent know what’s happening throughout the process.
Local Knowledge
Based in Queen Creek and serving eligible borrowers throughout Arizona and other states where Lori is licensed.
Options, Not Pressure
If another mortgage option better fits your circumstances, you’ll understand the comparison before deciding.
Lori Smolke is a Mortgage Loan Officer with Fairway Home Mortgage, NMLS #916797, based in Queen Creek, Arizona. With mortgage lending experience dating back to [YEAR], Lori helps Veterans, active-duty service members and other eligible borrowers understand their home financing options and navigate the VA mortgage process.
Whether you’re buying for the first time or you’ve used a VA loan before, Lori can help you review your eligibility, entitlement and available mortgage options.
A VA-backed home loan is made by a private lender, such as a mortgage company or bank, while the Department of Veterans Affairs guarantees a portion of the loan. That guaranty can allow lenders to offer eligible borrowers favorable financing terms, including the possibility of purchasing a home without a down payment.
VA home loan eligibility is generally based on military service history and duty status. Veterans, active-duty service members, members of the National Guard or Reserve, and certain surviving spouses may qualify. A Certificate of Eligibility, or COE, confirms whether you meet the VA's service requirements for the benefit.
Having a COE doesn't automatically mean the mortgage is approved. Borrowers still need to meet applicable lender and VA requirements for income, credit, occupancy and the property being financed.
A Certificate of Eligibility, commonly called a COE, verifies that you meet the military-service requirements to use the VA home loan benefit. It also provides information about your available VA entitlement.
You don't necessarily need to locate your COE before talking with Lori. A lender may be able to obtain it as part of the mortgage process.
Eligible borrowers may be able to purchase with no down payment.
Whether a down payment is required depends on factors including entitlement, the purchase price, the appraised value and the borrower's overall financing situation. Borrowers with full VA entitlement generally aren't subject to a county VA loan limit, although the lender still determines how much the borrower qualifies to finance.
No VA loan limit doesn't mean unlimited borrowing.
A lender still evaluates:
VA entitlement is the amount of the loan guaranty the Department of Veterans Affairs makes available on behalf of an eligible borrower. It isn't a cash benefit or the maximum mortgage amount you can borrow. Your COE helps a lender determine how much entitlement is available.
If you've used a VA loan before and haven't restored all of your entitlement, you may still have remaining entitlement available. Your lender can calculate how that affects your next purchase and whether a down payment may be necessary.
Yes. Using a VA loan once doesn't necessarily use up the benefit forever.
Many eligible borrowers can use their VA home loan benefit again. Depending on what happened with a previous VA-financed property and loan, entitlement may be restored or remaining entitlement may still be available.
Used a VA loan before? Lori can review your COE and remaining entitlement.
The VA funding fee is a one-time fee charged on many VA-backed and VA direct home loans. It helps support the VA loan program because the program generally doesn't require a down payment or monthly mortgage insurance.
The amount can depend on the type of loan, whether you've used the VA loan benefit previously and how much you put down. The fee can generally be paid at closing or financed into the loan.
Some borrowers are exempt from the VA funding fee, including certain Veterans receiving or entitled to receive VA compensation for a service-connected disability, certain surviving spouses receiving Dependency and Indemnity Compensation, and qualifying active-duty Purple Heart recipients.
Lori can help determine the funding-fee status shown in your VA eligibility information.
For purchases and construction loans, VA currently lists:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Funding-fee rules may change. Verify your current fee or exemption with Lori before relying on these figures.
VA-backed loans do not require monthly PMI or FHA-style mortgage insurance premiums.
That can be an important difference when comparing VA financing with certain conventional or FHA options. A VA funding fee may still apply unless the borrower qualifies for an exemption.
The Department of Veterans Affairs does not set one universal minimum credit score for VA home loan eligibility. Individual lenders may establish their own credit requirements, and approval also considers income, debts, payment history and the overall loan profile.
If you've been told your credit prevents you from using your VA benefit, it's worth having Lori review the full situation before assuming VA financing isn't available.
Qualified borrowers may be able to use VA-backed financing to:
The property generally must be intended as the borrower's primary residence.
Potentially, yes. Eligible borrowers may use a VA-backed purchase loan to buy a property containing up to four units, subject to VA and lender requirements. The borrower generally must occupy the property as a primary residence.
If you're considering living in one unit and renting the others, Lori can explain how current VA qualifying and occupancy requirements apply to the property you're considering.
VA-backed purchase loans require a VA appraisal to establish the property's value and evaluate applicable VA property requirements. A VA appraisal is not the same thing as a home inspection, and buyers may still choose to obtain a separate home inspection.
If the appraised value is below the contract price, the transaction may need to be re-evaluated. Depending on the circumstances, the buyer and seller might renegotiate, additional supporting sales data may be considered, or the buyer may choose to pay a difference subject to applicable requirements.
Seller credits may be available toward certain VA closing costs. VA distinguishes ordinary closing-cost credits from seller concessions, and seller concessions are generally limited to 4% of the property's reasonable value. Closing cost credits and seller concessions combined may be above the 4%. This can be a bit confusing…Lori can help clarify for you and your agent before negotiating on a property.
| VA | Conventional | |
|---|---|---|
| Zero-down option | May be available | Generally not the standard option |
| Monthly mortgage insurance | No VA PMI/MIP | May apply depending on down payment/LTV |
| Funding fee | May apply | No VA funding fee |
| Military eligibility required | Yes | No |
| Primary residence | Standard VA purchase use | Primary, second home or investment may be available depending on program |
| Can reuse benefit | Often yes | Not applicable |
| Best choice | Depends on borrower | Depends on borrower |
For an eligible borrower, VA financing can be extremely powerful—but that doesn't mean every VA-eligible borrower should automatically choose it. Lori can compare the payment, cash needed to close, financing costs and long-term goals before you decide.
Review your goals, service history, income, debts and anticipated purchase.
Determine your VA eligibility and available entitlement.
Review the mortgage amount and payment that fit your financial situation.
Work with your real estate agent to find an eligible property.
Your lender begins the full loan process.
An approved appraiser evaluates the property's value and applicable VA property requirements.
Complete required documentation and loan conditions.
Review final figures, sign documents and complete your home purchase.
No. Eligible repeat homebuyers may also use VA financing.
Yes, potentially. Available entitlement and restoration rules determine how the benefit can be used again.
Qualified borrowers with sufficient entitlement may be able to purchase with no down payment.
No. VA-backed loans don't require monthly PMI or FHA-style mortgage insurance premiums.
The VA itself does not establish one universal minimum score, though lenders may have their own requirements.
A standard VA purchase loan generally requires the borrower to occupy the property as a primary residence.
Potentially. Eligible VA financing may be used for a property containing up to four units when program requirements are met.
No. You can begin the conversation before obtaining it, and a lender may be able to assist with obtaining your COE.
You may still have remaining entitlement or may be eligible to have prior entitlement restored.
No. The best mortgage depends on your full financial situation and goals.
One of the biggest benefits of VA financing is the possibility of buying without one.
VA entitlement can often be reused.
They serve different purposes.
An experienced lender and Realtor who understand VA financing can make a big difference in how the offer and loan are handled.
Understanding your entitlement, funding fee status and buying power before making an offer can save a lot of confusion later.
Mortgage lending since 1993.
VA terminology can be confusing. Lori explains entitlement, COEs, funding fees and loan options in plain English.
Both you and your real estate agent know what's happening throughout the process.
Based in Queen Creek and serving eligible borrowers throughout Arizona and other states where Lori is licensed.
If another mortgage option better fits your circumstances, you'll understand the comparison before deciding.
Lori Smolke is a Mortgage Loan Officer with Fairway Home Mortgage, NMLS #916797, based in Queen Creek, Arizona. With mortgage lending experience dating back to [YEAR], Lori helps Veterans, active-duty service members and other eligible borrowers understand their home financing options and navigate the VA mortgage process.
Whether you're buying for the first time or you've used a VA loan before, Lori can help you review your eligibility, entitlement and available mortgage options.