VA Home Loan FAQ
This page answers the most common questions about VA home loans — eligibility, costs, appraisals, credit, loan types, and buying in Tampa Bay. Every answer is written in plain English by Barrett Henry, a Military Relocation Professional (MRP) with REMAX Collective.
VA Loan Eligibility
Who qualifies for a VA home loan?
Most veterans, active-duty service members, National Guard and Reserve members with qualifying service, and some surviving spouses are eligible. You need a Certificate of Eligibility (COE) from the VA, which your lender can usually pull electronically in minutes.
Can I use my VA loan benefit more than once?
Yes. The VA loan is not a one-time benefit. You can restore your entitlement after paying off a previous VA loan or selling the home, and use it again with $0 down. You can even have two VA loans at the same time if you have remaining entitlement.
Do National Guard and Reserve members qualify for VA loans?
Yes, with qualifying service. Generally, you need 6 or more years of service in the Guard or Reserve, or 90 days of active-duty service (including training orders under Title 10). Your DD-214 or points statement will document your eligibility.
Can a surviving spouse get a VA loan?
Un-remarried surviving spouses of veterans who died in service or from a service-connected disability are eligible. Surviving spouses who remarried after age 57 may also qualify. The funding fee is waived for eligible surviving spouses.
Costs & Funding Fee
What is the VA funding fee?
The funding fee is a one-time fee paid to the VA that helps sustain the loan program. For first-time users with $0 down, it's 2.15% of the loan amount. It can be financed into the loan so you don't pay it out of pocket. Veterans with service-connected disabilities are exempt.
How much are VA loan closing costs?
Closing costs on a VA loan typically run 2-4% of the purchase price, similar to other loan types. The VA limits certain fees lenders can charge, and sellers can contribute up to 4% of the sale price toward your closing costs. Your lender will provide a Loan Estimate with exact figures.
Is there really no down payment required?
Correct. VA loans allow eligible borrowers to finance 100% of the home's purchase price — $0 down. This is one of the biggest advantages of the VA loan program. You can choose to put money down, which reduces the funding fee, but it's not required.
Do VA loans have PMI (private mortgage insurance)?
No. VA loans never require PMI, regardless of your down payment. On a conventional loan with less than 20% down, PMI can add $100-300+ per month. This savings alone makes VA loans significantly more affordable over time.
The VA Appraisal
What does a VA appraisal check for?
A VA appraisal establishes the home's market value and verifies it meets Minimum Property Requirements (MPRs) — basic safety, structural soundness, and sanitation standards. It's not a full home inspection. Cosmetic issues like dated paint or worn carpet won't trigger problems.
What is the Tidewater process?
If the VA appraiser is trending toward a value below the contract price, the Tidewater process gives your agent and lender a window to submit supporting comparable sales data before the value is finalized. It's a built-in safeguard against surprise low appraisals.
What happens if the appraisal comes in low?
You have options: negotiate the purchase price down to the appraised value, cover the gap yourself if you choose, or use your appraisal contingency to exit the contract with your earnest money. A low appraisal is a negotiation point, not an automatic deal-killer.
Credit & Qualifying
What credit score do I need for a VA loan?
The VA itself does not set a minimum credit score. However, most lenders require a score of 580-620 or higher. Some lenders work with scores as low as 580, while others want 620+. Your full financial picture — income, debt-to-income ratio, and residual income — matters as much as the score.
Can I get a VA loan after bankruptcy or foreclosure?
Yes, after a waiting period. After a Chapter 7 bankruptcy, most lenders require a 2-year wait. After foreclosure, it's typically 2 years. Chapter 13 bankruptcy may allow you to apply after 12 months of on-time payments with court approval.
Does the VA loan have a debt-to-income ratio limit?
The VA uses a 41% DTI guideline but it's not a hard cap. The VA also requires sufficient residual income — money left over after all obligations. Strong residual income can offset a higher DTI ratio, giving VA loans more flexibility than conventional options.
VA Loan Types & Options
What is an IRRRL (VA Streamline Refinance)?
The Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance an existing VA loan to a lower rate with minimal paperwork. No appraisal is typically required, no income verification, and the funding fee is only 0.5%. It's designed to be fast and simple.
Can I use a VA loan to build a house?
Yes, through VA construction loans, though they're less common. You'll need a VA-registered builder and a lender that offers construction financing. An alternative is buying new construction from a production builder, which uses a standard VA purchase loan and is much simpler.
Can I buy an investment property with a VA loan?
The VA loan is for primary residences. However, you can buy a multi-unit property (up to 4 units) with a VA loan as long as you live in one of the units. You can also rent out a previous VA-financed home after you move, as long as you've met the occupancy requirement.
Buying in Tampa Bay
Which Tampa Bay areas are best for military families?
Popular choices include Brandon, Riverview, and Valrico for MacDill AFB commuters; Wesley Chapel and Land O' Lakes for families wanting top schools; and St. Petersburg and Clearwater for those near Bay Pines VA Medical Center. Each area has its own strengths for VA buyers.
What does MRP (Military Relocation Professional) mean?
MRP is a certification from the National Association of REALTORS for agents who have completed specialized training in serving military families. It means the agent understands PCS timelines, VA appraisal requirements, BAH, and the unique needs of military homebuyers.
Do VA loan limits apply in Florida?
Since 2020, VA loan limits do not apply to borrowers with full entitlement. You can borrow any amount a lender will approve with $0 down. Loan limits only affect veterans with partial entitlement (those who already have an active VA loan or lost entitlement through foreclosure).
Is Barrett Henry a veteran?
Barrett is not a veteran himself. He is the son of a U.S. Air Force veteran and a certified Military Relocation Professional (MRP). With 23+ years of real estate experience, he specializes in helping veterans and military families buy homes across Tampa Bay's eight counties.
Want the Full Guide?
Each topic above has a dedicated in-depth guide with more detail:
I'm Barrett Henry — a Military Relocation Professional (MRP) and Broker Associate with REMAX Collective. I help veteran and military homebuyers across Tampa Bay understand their VA loan benefits and navigate the home buying process. For official VA home loan information, visit the U.S. Department of Veterans Affairs. For details on the MRP certification, see the National Association of REALTORS.
Still Have Questions?
Barrett Henry (MRP) answers personally. No scripts, no call center — just straight answers about your VA benefit.