A VA loan is a home mortgage guaranteed by the U.S. Department of Veterans Affairs. It is built for eligible veterans, service members, and surviving spouses who want zero down payment and no monthly mortgage insurance.
The VA does not lend you money directly on a purchase loan. A lender like Luminate Bank originates the mortgage, and the VA guaranty protects that lender if the borrower defaults. That guaranty is why many eligible buyers can finance 100% of the purchase price with no monthly mortgage insurance.
You typically choose a fixed-rate term (often 30 years). Monthly payments usually cover principal, interest, taxes, and homeowners insurance — without PMI or MIP. Most purchases include a one-time VA funding fee that can often be financed into the loan; many veterans with a service-connected disability rating are exempt.
VA loans are for primary residences. Your Certificate of Eligibility (COE) confirms service history and remaining entitlement — Ryan and Steve pull this early so shopping starts with real numbers.
When you have the benefit, VA is often the strongest purchase path available.
Finance 100% of the purchase price with full entitlement — no down payment required when the rest of the file qualifies.
Skip PMI and FHA MIP. That alone can lower the monthly payment compared with other low-down programs.
VA-backed financing often prices competitively for eligible borrowers who meet credit and residual-income guidelines.
Sell and restore entitlement, or use remaining entitlement for another primary residence in many cases — we map that before you shop.
Not sure if VA is the right fit? Compare it with other programs we close every week.
| Feature | VA | FHA | Conventional |
|---|---|---|---|
| Min. down | $0 | 3.5% | 3% |
| Monthly MI | None | MIP (often life of loan) | PMI under 20% down |
| Upfront fee | Funding fee (exemptions apply) | Upfront MIP | None typical |
| Who qualifies | Eligible veterans & military | Most owner-occupants | Most borrowers |
Related guides to help you compare options and move toward pre-approval.
Program details, funding fee calculator, and entitlement tools.
Estimate remaining guaranty when entitlement is partially used.
Low- and zero-down options if this is your first purchase.
Compare VA’s $0-down path with FHA’s 3.5% down option.
2MG Daily
Recent articles from our blog on VA loans, entitlement, and veteran homebuying.
Sep 2, 2026 • 2MG Daily
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Sep 3, 2026 • 2MG Daily
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A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. Private lenders fund the loan; the VA guaranty helps eligible veterans, service members, and surviving spouses buy a primary home with $0 down and no monthly mortgage insurance.
VA usually allows $0 down with no monthly MI — only a one-time funding fee (often financed, and waived for many disability-rated veterans). FHA requires MIP and typically 3.5% down. USDA also offers $0 down but requires eligible rural/suburban locations and household income limits VA does not use.
Eligible veterans, active-duty service members, qualifying National Guard/Reserve members, and eligible surviving spouses who want to keep cash to close low and avoid monthly mortgage insurance on a primary residence.
Yes. Your Certificate of Eligibility (COE) confirms service eligibility and remaining entitlement. Ryan and Steve pull or request your COE early so we can model full vs partial entitlement before you shop.
Know your buying power before you shop. Ryan & Steve can pull your COE, check entitlement, model the funding fee, and get you pre-approved — averaging a 20-day close.