You earned this benefit. Use it like an asset.
A plain-language guide to the VA home loan and other housing benefits for veterans, service members and surviving spouses in Hampton Roads, from a veteran-led team.
Powerful, but not automatic. Know both sides.
A VA-backed loan is made by a private lender and guaranteed in part by the U.S. Department of Veterans Affairs. That guarantee is what makes the terms below possible.
The advantages
- No down payment, often. With full entitlement, you may put nothing down as long as the price is not higher than the appraised value.
- No monthly mortgage insurance. VA loans do not require PMI or MIP.
- Competitive rates and terms. Lenders typically offer better terms than many other loan types.
- Seller help with costs. The seller can pay your closing costs. Seller concessions are capped at 4% of the home's reasonable value.
- No prepayment penalty. Pay it off early whenever you choose.
- Assumable. A qualified buyer can take over your loan later, which can be valuable if your rate is low.
- Reusable. It is a lifetime benefit you can use again. See the section below.
The trade-offs
- The funding fee. A one-time fee on the loan amount, unless you are exempt. On a purchase with less than 5% down it is 2.15% the first time and 3.3% after first use. Putting 5% down lowers it to 1.5%, and 10% down to 1.25%.
- You must live in the home. VA purchase loans are for a home you will occupy, not a pure investment property.
- The VA appraisal. The home must meet VA minimum property requirements, which can mean repairs before closing.
- Cash at closing. On a purchase, only the funding fee can be added to the loan. Other costs are paid at closing or by the seller.
- Entitlement stays tied up. While a VA loan is open, the entitlement it uses is not available for your next purchase.
- Seller misconceptions. Some sellers wrongly see VA offers as weaker. A well-prepared offer and an agent who knows the process close that gap.
The words you will hear, in plain English.
- Certificate of Eligibility (COE)
- The VA document that shows you qualify for a VA-backed loan and how much entitlement you have. Your lender can usually request it for you.
- Entitlement
- The amount the VA will guarantee to your lender if the loan is not repaid. It is not cash and not a loan limit, but it determines how much you can borrow with no down payment.
- Full entitlement
- You have never used the benefit, or you used it and it has been fully restored. With full entitlement, the VA does not cap your loan amount. Your lender still decides what you can afford.
- Remaining entitlement
- What is left when part of your entitlement is still tied to a VA loan you have not paid off. It is how you can hold two VA loans at once.
- Basic and bonus entitlement
- Basic entitlement is $36,000 and applies to loans of $144,000 or less. Bonus, or second-tier, entitlement covers larger loans, where the VA guarantees up to 25% of the loan amount.
- County loan limit
- The Federal Housing Finance Agency's one-unit limit for your county. It only matters if you have remaining, not full, entitlement. The 2026 national baseline is $832,750, and most Hampton Roads localities use the baseline. Confirm yours with your lender.
- Funding fee
- A one-time fee, paid to the VA, that keeps the program running. It is a percentage of the loan amount and can be paid at closing or added to the loan.
- Funding fee exemption
- You do not pay the fee if you receive VA compensation for a service-connected disability, are eligible for it but receive retirement or active-duty pay instead, are a surviving spouse receiving Dependency and Indemnity Compensation, have a qualifying pre-discharge rating before closing, or are an active-duty member with a Purple Heart.
- Reasonable value and Notice of Value (NOV)
- The VA appraiser's opinion of what the home is worth, issued as a Notice of Value. Your loan is limited to the lower of this value or the price.
- Minimum Property Requirements (MPRs)
- VA standards that a home be safe, sound and sanitary. Items such as roof, heating, water and safety issues may need to be fixed before closing.
- Seller concessions
- Extras the seller pays for you beyond normal closing costs, such as paying off debts or prepaying taxes. They are capped at 4% of reasonable value.
- Occupancy
- Your promise to live in the home as your primary residence. VA loans can be used for a home of up to four units if you live in one of them.
- Assumption
- When a qualified buyer takes over your existing VA loan. The VA charges a 0.5% fee. Unless the buyer is an eligible veteran who substitutes their entitlement, yours stays tied to the loan.
- Restoration of entitlement
- Getting used entitlement back so you can use the full benefit again, usually after the loan is paid off and the home is sold.
- IRRRL
- Interest Rate Reduction Refinance Loan. A streamlined refinance from one VA loan to another, usually to lower your rate. Funding fee: 0.5%.
- Cash-out refinance
- Replacing your current loan with a VA loan for more than you owe, taking the difference in cash. Funding fee: 2.15% first use, 3.3% after.
It is not a one-time benefit.
You can use the VA loan again and again over your lifetime. How you use it the second time depends on what you do with the first home.
Sell and start fresh
Sell the home and pay off the VA loan, and you can have your full entitlement restored. Your next purchase starts with full entitlement and no VA loan limit.
Keep it and buy again
Orders moving you? You may be able to keep the first home, rent it out, and buy the next one with your remaining entitlement. Two VA loans can be open at the same time.
One-time restoration
If you pay off a VA loan but keep the home, you can ask the VA to restore your entitlement once. After that, future restorations generally require selling the VA-financed property.
Substitution
If an eligible veteran assumes your loan and substitutes their entitlement for yours, your entitlement is freed up.
An illustration, not a quote.
The VA's own method: take your county's one-unit limit, multiply by 25%, and subtract the entitlement still tied to your first loan, shown on your COE. Lenders generally want that figure to cover 25% of the new loan, so multiply it by four to estimate how much you could borrow with nothing down.
Illustrative only. Your COE, your county limit, your credit and income, and your lender's approval decide the real number.
- County limit (2026 baseline)$832,750
- × 25%$208,187
- Minus entitlement still used, for example on a $300,000 first loan− $75,000
- Remaining entitlement$133,187
- Approximate no-down-payment loan (× 4)≈ $532,750
Mind the second-use fee
After first use, the funding fee with less than 5% down rises to 3.3%. Putting 5% down drops it to 1.5%. On a $400,000 loan that is a $7,200 difference, so it is worth running both ways. If you are exempt, none of this applies.
Turn the first home into an asset
If you keep the first home, S&K Property Management can show you what it could rent for and manage it while you are away. Whether keeping it is wise depends on the numbers, and we will show you those honestly.
Other housing benefits worth knowing.
Programs from the VA and the Commonwealth of Virginia. We are not affiliated with either. Confirm eligibility directly with the agency.
Virginia real estate tax exemption
Veterans rated 100% service-connected, permanent and total, including through individual unemployability, may be exempt from real estate tax on their principal residence and up to one acre. Surviving spouses who do not remarry may keep it, and spouses of service members killed in action may qualify. Apply with your local Commissioner of the Revenue.
Virginia Department of Veterans Services ↗VA adaptive housing grants
For qualifying service-connected disabilities: Specially Adapted Housing, up to $126,526, and Special Home Adaptation, up to $25,350, to buy, build or modify a home, plus Temporary Residence Adaptation for a family member's home. Amounts are for fiscal year 2026.
VA disability housing grants ↗VA home loan help
VA home loan representatives answer questions about eligibility, your COE and entitlement. Call 877-827-3702, weekdays, 8 a.m. to 6 p.m. ET.
VA home loans ↗If payments get hard
If you have a VA-backed loan and fall behind, the VA can work with you and your servicer on options. Our Homeowner Resources page lists free, official help.
Homeowner ResourcesFunding fee rates are those the VA has published as effective April 7, 2023. Grant amounts are for VA fiscal year 2026. Figures change; confirm with the VA or your lender. Last reviewed October 2026.
This page is general information drawn from the U.S. Department of Veterans Affairs, the Federal Housing Finance Agency and the Virginia Department of Veterans Services. It is not legal, tax or lending advice. Black Lion Alpha | eXp Realty is a real estate brokerage, not a lender and not affiliated with or endorsed by the VA or any government agency. VA loans are made by private lenders, and eligibility, entitlement, fees and approval are determined by the VA and your lender. Confirm current figures and your own eligibility with them.
Plan your next move with a veteran-led team.
Buying with your VA benefit for the first time or the fifth, tell us where you are headed. A licensed broker on our team will reach you within one business day. There is no cost and no obligation.
Or call the office: 757.872.2358 Prefer to text? Text Kerry at 757.244.9126