🎙️ VA Loan Basics: Myths, Facts, & Pro Tips
VA Loans are one of the most underutilized, nuanced, and valuable resources a Veteran is entitled to. However, even for those who have used them, they’re often misused, misunderstood, or far more expensive than they needed to be.
We’re inviting you to join us on a journey. Not just to educate yourself, but to bring other Veterans along with you, and strive to help every Veteran maximize the full scope of their VA benefits.
Why VA Loans Matter (and What Your Fellow Vets Should Know)
🏆 <20% of eligible Veterans use their VA Loan – This is one of the biggest wealth-building tools available to Veterans, yet most never take advantage. Vets share intel on MBA apps, disability claims, and MWR tricks, but not VA Loans.
💰 VA Loans are the cheapest mortgages available – Thanks to low default rates and 25% government backing, VA loans feature:
✅ 100% financing (no down payment, just 2–3% in closing costs)
✅ No PMI – Huge monthly savings (5–15% interest rate equivalent), replaced by a 1–3% funding fee
✅ Lower interest rates – As of 4/13/2025: 6.25% VA vs 6.5% FHA / 6.75% Conventional (for well-qualified buyers)
✅ No funding fee for Veterans with 10%+ VA disability ratings
🚀 The VA Loan has evolved – No longer just for small, entry-level homes, VA Loans are UNCAPPED for first-time use/ fully restored entitlements, so you can buy $1M–$5M+ properties with zero down. Different lenders do apply their own internal caps - typically between $2M–$4M - but some lenders go up to $5M+. Though over $2.5M–$3M, they aren’t always the best value.
📉 Credit & income requirements are the most forgiving in the industry:
Credit scores as low as 580 (most lenders min, but VA has no min), though rates improve meaningfully 680-700+
Much higher debt-to-income (DTI) ratios than conventional loans allow - VA doesn’t technically use DTI at all, it uses ‘residual income requirements’ which are frankly too generous
No minimum reserve requirements (you don’t need extra cash in the bank)
⚠️ But be careful if your DTI is over 45%–50% — unless your spouse works and isn’t on the loan, or you know your income will rise soon, you may be stretching yourself too thin.
If you're not using your VA Loan, you're leaving a powerful benefit untapped. It can fast-track homeownership while saving you thousands compared to civilian mortgage options.
Fast Facts You Won’t Find on Google
You can use VA Loans more than once – No “one-time use” rule. You can reuse your benefit multiple times. You can also own multiple VA Loan homes at once, though this is situation-dependent and is NOT always the best path.
Lowest default rate of any mortgage type – Despite zero down, VA loans outperform conventional loans in foreclosure prevention. Vets pay their debts. As a result, bond buyers LOVE VA Loans and pay more for them, resulting in better terms.
VA Loans only work for U.S. properties – But certain U.S. territories like Guam, Puerto Rico, and the U.S. Virgin Islands qualify.
More than just Veterans qualify – Active duty, reservists, National Guard, Coast Guard, and some surviving spouses are eligible too.
Common Myths That Cost You Money
❌ “VA Loans are One and Done” → False! Reusable as long as you restore entitlement or have remaining entitlement if your first loan was under the County Loan Limit. HOWEVER, “tying your VA Loan up” across multiple smaller loans can be as much of an anchor as it is a superpower. If you expect to make significantly more money soon, using a VA Loan today for a $250K mortgage could prevent you from buying your “dream home” in five years.
❌ “VA Loans Take Forever to Close” → Nope! VA loans close just as fast (if not faster) than conventional loans. Working with a lender and/or Realtor that understands the nuances - especially appraisal timing - is critical.
❌ “Sellers Hate VA Loans” → This has changed rapidly. Many Realtors and sellers now prefer VA loans. Property repairs are quite minor if any. Appraisal driven repairs just require urgency and communication between Realtors. VA Loans actually close at a HIGHER rate than FHA and Conventional once under contract!
❌ “You Can’t Use VA for Investing” → You can buy up to a 4-unit property as long as you intend to live in one unit. VA Loans are the BEST tool for house hacking. Technically, you can even go to 5 units if the 5th is a small commercial space, unzoned in-law unit, or ADU.
❌“VA Requires me to live there for 2 years” → The VA has a requirement to INTEND to live in the home for 12 months, but life happens especially if you’re Active Duty. You need a clear, and easily demonstrated intent to move in to the home. IRRL Refinances do NOT require you to still be living there, simply that you certify you previously did.
❌ “You can’t buy a Condo with VA loans” → There is a certification process through the VA that your lender should be managing for you entirely. Starting it early and aggressively is hugely important. Even when the VA rejects a Condo, it allows Veterans a request to ‘waive’ most rejection reasons.
❌ “You Can Only Spend $X” → False. VA Loans are uncapped for first-time use and fully restored entitlements. Many lenders apply internal caps between $2M–$4M, but the loan program itself allows for much more.
Pro Tips for Maximizing VA Loans
🗺️ Know your 3–5 year goals FIRST – The VA Loan isn’t always the best option for your goals. If you ask for a VA Loan, most lenders will say yes - it’s one of the most profitable products they offer. But the best loan depends on your family's plan. Your first mortgage conversation should feel like a chat with a financial advisor, not a sales pitch.
📊 Know Your Entitlement – You may have partial entitlement left even if you've used your VA Loan before. We'll dive deeper into how to calculate and optimize this.
🏡 Save it for the dream home – With full entitlement, there’s no loan limit. Buying two to three $200K homes may seem savvy now but could block you from using your VA Loan for your ideal home later.
📚 MBA “Offer Letter” Hack– Many Vets don’t realize that if they are currently 2nd Year MBA students with a > $100k job “offer letter” in hand, that within ~180 days of ‘start date’ from their new role they can offer AND close on a home using ‘future income’. Consult with an MBA-familiar lender to maximize this opportunity.
💰 Some lenders make more money selling you a VA Loan – Understanding this is critical. In many cases, saving your VA Loan for a future home makes more sense, but some lenders won’t tell you that. We estimate that 15–20% of Veterans who come to us for a VA Loan end up using a different loan type because it aligns better with their goals.
💵 Use VA for Multi-Units – Duplex, triplex, or fourplex? Live in one, rent the others. Rental income can count toward loan qualification. That can take your buying power from $700K to $1M+.
📈 Multifamily math wins – Buy a $1M 4-unit with the VA Loan and $25K down. Even if it never appreciates, it can double the return of the S&P 500 over 30 years. If it grows at just 2% annually? You’re looking at $2M+ in value—beating the stock market 4:1.
🏈 Rob Gronkowski will rip you off – The big-name “Veteran” lenders - USAA, Navy Fed, Federal Savings Bank, Veterans United - often charge more. They charge 1% origination fees, typically higher rates, and even advertise rates that have BIG caveats.
They spend heavily on bricks and branches, marketing, overhead, and doofus sponsorships. Smaller Lenders often beat them by thousands and don’t even need industry required “manager approval” to cut their fees to do it; these banks are that overpriced.
🎖️Disabled Vets Property Tax discounts: Over 20 states have hugely material (up to 100%) reductions in Property Taxes for Disabled Vets. This allows you to buy in 2025 at 2020 prices, as taxes make up 10 - 40% of your typical Mortgage Payment.
🚀 Waive the VA Funding Fee – If you have any VA disability rating (10%+), the funding fee is waived, saving thousands.
Also, if you're in the process of applying for disability and get approved after closing, the VA will refund the fee retroactively. Keep in mind you must SUBMIT claim prior to close!
🔄 Fastest & easiest refinances, but be prepared! – VA IRRRL (Interest Rate Reduction Refinance Loan) lets you refinance with no income verification and no appraisal, and you do NOT have to live there anymore!
In today’s volatile market, having a refi app already submitted is crucial. Rates may only drop for hours. Be ready and have a convo with your lender BEFORE rates drop and let your lender be “fully enabled” to lock as rates hit your target.
🧮 You can refi while jobless or a student – If you’re current on your mortgage, you don’t need to prove income to do a VA IRRRL.
Where Do I Go From Here?
Get excited about buying – Use a mortgage calculator to see what you can afford, then hop on Zillow or Homes.com to get a feel for what’s out there.
Start talking – Tell friends you plan to buy. Ask for referrals to realtors, lenders, and decorators for your future She-Shed. Committing starts with owning the idea.
Ping us, we offer a realtor screening document. Your realtor should have VA Loan experience, and you shouldn’t pick the first one your Great Aunt Maggie sends you since she had a great experience in 2002
Get Pre-Approved and build a budget- Sounds so obvious, but over half our clients don’t have an actual budget built to inform how much/ little they can afford. Force a lender to ‘work backwards’ from your payment needs for pre-approval. On VA Loans lenders often “pre-approve” you for at least 25% if not 50%+ more than a prudent family budget would allow for.
You can tour homes without an agent – Use Redfin to schedule no-commitment home tours. While we don’t always recommend using their agents, their platform is great for previews and “window shopping”.
Helpful Links & Resources
📜 Official VA Loan Guide → VA.gov Home Loans
Hint Use ChatGPT and explicitly ask it to refer to and cite the “VA Handbook”. Use it as a librarian, but always look at the source!
📈 Loan Limits & Entitlement Rules → VA Loan Limits
Entitlement rules → VA does a terrible job ‘showing you how to calculate” so we’ll do a deep-dive on this soon
These only apply to ‘subsequent use’; the loan is uncapped for first time use
See “Fannie/ Freddie” limits, NOT FHA
ONLY Single Family County Limits apply to subsequent use entitlement, so if you’re buying a multi on subsequent use, you do NOT get more
🔄 VA IRRRL Refinance Info → VA Refinance Guide
We’ll be deep-diving into refi’s later, but here are somehigh level key facts:
IRRRL’s don't require income, but must save a minimum of .5% interest
Cashout refi’s do require income + appraisal; can cashout to 100%
➗VMS Basic Mortgage + budget calc → Simple Mortgage/ Budget calc
Customize and insert your own living budget. Duplicate the template to adjust expenses and explore how different housing choices impact your finances.
Want help running the numbers or building a plan around your VA eligibility? Book a call with JD Modrak today or add him on LinkedIn for more specific content.
