This guide takes you from eligibility to closing on a VA loan, with a worked cost example and a side-by-side look at your options. The veteran home buying process is not complicated, but it has VA-specific steps that conventional buyers never meet. Before you start, gather your DD-214 or statement of service, recent pay stubs or income records, two months of bank statements, and a rough monthly budget.
By Duane Buziak, NMLS #1110647. I am an independent VA loan broker licensed in Virginia, Florida, Tennessee, and Georgia, with access to 500+ wholesale lenders and a 500 FICO floor on VA loans. This guide is written from that broker’s seat, with an emphasis on credit flexibility and choice.
Step 1: Confirm Your VA Eligibility and Get Your Certificate of Eligibility
Service requirements depend on your era and component. Active duty, National Guard, Reserve, and surviving spouses each have different minimums, so check your own category on the VA eligibility page instead of assuming. The document that proves it is your Certificate of Eligibility (COE), which states that you qualify and how much entitlement you have.
There are three ways to get a COE:
- Request it online through the VA eligibility portal.
- Have a broker request it for you. I can pull it in minutes in most cases.
- Mail VA Form 26-1880 to the VA. This is the slowest route.
Veterans generally need a DD-214. Active-duty members need a statement of service signed by the command or personnel office. The VA’s COE page lists the current options.
One common mistake: assuming a prior VA loan or an old default disqualifies you. Entitlement can often be restored or used in part, and Step 3 shows how that works.
You should also know who you are dealing with. I am a broker, not a direct lender like Veterans United, Rocket, or Movement. A direct lender funds loans from its own single rate sheet. As a broker, I place your loan with whichever of 500+ wholesale lenders fits your file best, and the same COE works with all of them.
Step 2: Check Your Credit and Get Pre-Approved Without a Hard Pull
The VA sets no official minimum credit score. Each investor sets its own overlay, which is why published floors differ. As of 2026, Veterans United publishes 620 and Movement 580 on VA loans, and Rocket does not publish a VA-specific floor. Both are direct lenders working from one shelf. As a broker, I can place VA loans down to 500 FICO, because somewhere among 500+ wholesale lenders there is often one whose overlay fits your file. That is not a guarantee of approval, and compensating factors like income and residual income still matter.
NoTouch Credit Pull is our soft-pull pre-qualification: we review your credit through a soft credit pull mortgage process, so you see real numbers before any hard inquiry touches your report. A standard pre-approval triggers a hard pull at the start. This is a no hard inquiry mortgage pre approval path, and it lets you test your options without a score drop.
Know what each letter proves to a seller:
- Pre-qualification is an estimate based on what you tell us. It is useful for planning but carries little weight in an offer.
- Pre-approval means we have verified income, assets, and credit. Pay stubs, bank statements, and a hard credit check when you are ready to move upgrade one to the other.
If your score is low, start with free fixes. Pull your reports at AnnualCreditReport.com and dispute any errors. Bring card balances below roughly 30% of their limits, and ideally lower. Our free DIY credit improvement resources lay out the sequence. Do not open new accounts while you work on it.
Step 3: Understand Your Entitlement, Funding Fee, and Down Payment Options
Entitlement is the amount the VA guarantees to the investor. With full entitlement, the VA imposes no loan limit, and most buyers put nothing down. If you still own a home bought with VA financing, you have second-tier (remaining) entitlement. The VA guarantees 25% of the county loan limit minus the entitlement already in use, so the county limit matters again. Entitlement is not one-use only. It is restored when a VA loan is paid off and the home sold, and in some cases it can be restored once.
The VA funding fee is a one-time charge that depends on your down payment and whether this is first or subsequent use. As of 2026, the VA’s funding fee page lists these purchase rates:
- First use: 2.15% with under 5% down, 1.5% with 5% to under 10% down, 1.25% with 10% or more.
- Subsequent use: 3.3% with under 5% down, then 1.5% and 1.25% at the same thresholds.
Veterans receiving VA disability compensation, Purple Heart recipients, and certain surviving spouses are exempt. Confirm the current schedule before you budget.
Down payment assistance may stack where it is available. Per program specs, Dynamo DPA provides 2.5% or 3.5% with a 580 FICO, and Turbo DPA provides 3.5% or 5% with a 600 FICO. Availability varies by state and file, so I verify it for each buyer.
The decision point: 0% down maximizes cash in your pocket. A small down payment cuts the funding fee tier and the monthly payment. Step 4 puts numbers on it.
Step 4: Run the Numbers With a Worked Cost Example
Suppose a $400,000 purchase with 0% down, using an illustrative 6.5% rate on a 30-year fixed loan. This is an example, not a quote.
- First-use veteran, no exemption: 2.15% of $400,000 is $8,600. Financed into the loan, the amount becomes $408,600, and principal and interest comes to about $2,583 per month.
- Disability-exempt veteran: the fee is $0. The loan stays at $400,000, and principal and interest is about $2,528 per month.
The exemption saves about $55 per month in payment, and $8,600 in added debt. Now add taxes and insurance. Assuming $4,000 a year in property tax and $1,400 in homeowners insurance (about $450 a month), the all-in payment is roughly $3,033 for the first-use buyer and $2,978 for the exempt buyer. The VA charges no monthly mortgage insurance, unlike the MIP on an FHA loan.
For a state-specific item, the 2026 baseline conforming loan limit is $832,750 for most counties, per the FHFA loan limit values. Some high-cost counties, including parts of Northern Virginia, are higher, so check yours. It matters for second-tier entitlement in Virginia, Florida, Tennessee, and Georgia.
On closing costs, sellers can pay your customary costs plus up to 4% in concessions, within VA rules. We structure no-out-of-pocket closing options using seller credits and lender credits, but costs still exist and someone pays them, so I never describe a loan as having no closing costs.
Step 5: Choose Your Broker and Compare Your Options
Compare on credit flexibility, shelf size, and how soon you see real numbers. Figures below are as of 2026 and should be verified with each company.
| Company | FICO Min | Lender Type | Loan Shelf | Fees | Pre-Approval Method | Credit Pull |
|---|---|---|---|---|---|---|
| VaLoansPro.com (Duane Buziak) | 500 | Independent broker | 500+ wholesale lenders | Broker-negotiated and shop-able | NoTouch Credit Pull, then full pre-approval | Soft pull first |
| Veterans United | 620 | Direct lender | Single VA-focused shelf | Origination on the higher side | Application-based | Hard pull at application |
| Rocket | Varies, no public VA floor | Direct lender | Single shelf | Set by its own rate sheet | Application, then real numbers | Hard pull before real numbers |
| Movement | 580 on VA | Direct lender | Single shelf | Set by its own rate sheet | Full application, no standalone pre-approval | Hard pull |
Credit where it is due. Veterans United’s VA-only focus brings real process depth, and Movement has substantial origination experience. The difference is structural: one shelf versus 500+, and a higher credit floor versus a lower one. It is not better company versus worse. Rocket and Movement use a hard inquiry before you see real numbers. We do not.
Independence works in practice like this: the same borrower, run through multiple investors’ pricing and overlays, side by side. I run a zero-kickback policy, and Duane Buziak is a Scotsman Guide Top Originator (#114 nationally) and VA Broker of the Year for 2024 and 2025. Our Dare to Compare challenge, where you send an existing Loan Estimate and we price it against our shelf, is the easiest test.
To compare offers fairly, line up the Loan Estimates and check four things: rate, points, lender credits, and Section A origination charges.
Step 6: Find the Home, Make an Offer, and Pass the VA Appraisal
Hire an agent who writes VA contracts regularly. Your offer should include the VA escape clause, which lets you walk away without losing earnest money if the appraisal comes in under the price.
The VA assigns the appraiser. Besides value, the appraisal checks the Minimum Property Requirements (MPRs): the home must be safe, sanitary, and structurally sound. Typical failures are peeling paint on older homes, a failing roof, no working heat, and active wood damage. See the VA home loans pages for the current standards.
If value comes in low, you have options. Under the Tidewater Initiative, the appraiser must tell your agent before finalizing a value below contract price, giving you a chance to submit comparable sales. After the report, you can also request a reconsideration of value. Or you can renegotiate the price.
Three mistakes to avoid:
- Waiving the appraisal contingency. If the value falls short, you owe the gap in cash.
- Skipping the home inspection because VA does not require one. The VA appraisal is not an inspection.
- Chasing a property that cannot meet MPRs, such as a fixer-upper with major defects, unless repair funds are worked into the deal.
The occupancy rule: you must intend to live in the home as your primary residence, normally within 60 days of closing. Confirm the current VA wording. You can buy a two- to four-unit property if you occupy one unit.
Step 7: Move Through Underwriting and Close the Loan
After contract, underwriting reviews your file and issues conditions: pay stubs, explanations for deposits, the appraisal, title work. Answer each within a day. Meanwhile, do not open new credit, change jobs, or move large unexplained deposits, as any of them can derail an approval at the last minute.
At least three business days before closing you should receive your Closing Disclosure. Compare it line by line with your Loan Estimate, checking the rate, loan amount, funding fee, and fees. If anything moved without explanation, ask before you sign.
Closing day checklist:
- Government photo ID.
- Certified funds if cash is due. If wiring, verify instructions by phone using a number you already know, never one from an email.
- Final walkthrough, ideally within 24 hours of closing.
Afterward, your first payment is typically due the first of the second month after closing, and an escrow account will collect taxes and insurance with each payment. Later, an IRRRL (Interest Rate Reduction Refinance Loan) can lower your rate on an existing VA loan with limited paperwork. Where eligible, a VA cash-out refinance can go up to 100% LTV.
Frequently Asked Questions About the Veteran Home Buying Process
Can I get a VA loan with a 500 credit score?
Yes, it can be possible. The VA sets no minimum score, and some wholesale investors accept scores as low as 500. As a broker, I search for one whose overlay fits your file. Approval is never guaranteed and still depends on income, debts, and residual income.
Do I need a down payment?
Usually not. Eligible veterans with full entitlement can typically buy with 0% down, as long as the home appraises at the price. A down payment of 5% or more lowers the funding fee and your monthly payment, so run both scenarios first.
How long does the process take?
From contract to closing, 30 to 45 days is common. Getting the COE and pre-approved takes a few days to a couple of weeks, and house hunting varies. Fast responses to underwriting conditions and no new credit activity are the best ways to avoid delays.
Does a pre-approval hurt my credit?
A full pre-approval includes a hard inquiry, which can lower your score by a few points. A mortgage pre approval without hard pull is possible through our NoTouch Credit Pull, which uses a soft inquiry first. You see numbers before any hard inquiry touches your credit.
Can I use my VA loan more than once?
Yes. Entitlement is reusable. It is restored after you repay the loan and sell the home, and you can hold a second VA loan using remaining entitlement while keeping the first home. The funding fee is higher on subsequent use unless you are exempt.
Who pays the funding fee, and who is exempt?
The borrower pays it, usually by financing it into the loan, though sellers can pay it as a concession. Veterans receiving VA disability compensation, Purple Heart recipients, and certain surviving spouses are exempt. Check the VA’s current exemption rules for your situation.
Can I buy a multi-unit home?
Yes, up to four units, provided you occupy one unit as your primary residence. You may be able to use rental income from the other units to help qualify. The property must also meet the VA’s Minimum Property Requirements.
What is the difference between a broker and a direct lender?
A direct lender funds loans from its own money and a single rate sheet. A broker, like me, shops your file across 500+ wholesale lenders and places it with the best fit. That means more pricing options and often more credit flexibility.
Start With a NoTouch Credit Pull Before You Start House Hunting
Your next step is to find out where you stand without a credit hit. Call VA Loans Pro by Duane Buziak at 804-212-8663 and start a NoTouch Credit Pull. We serve veterans buying in Virginia, Florida, Tennessee, and Georgia, whatever your credit history.
Disclaimer: This article is educational content, not financial or legal advice. Rates, fees, and VA rules change and are subject to verification. Nothing here guarantees a rate or approval. Consult a licensed professional about your situation. Equal Housing Opportunity.
About the author: Duane Buziak, NMLS #1110647, Coast2Coast Mortgage LLC NMLS #376205, is a Scotsman Guide Top Originator (#114 nationally, $51.2M) and was named VA Broker of the Year for 2024 and 2025. He has earned 1,400+ five-star reviews helping veterans buy and refinance across Virginia, Florida, Tennessee, and Georgia. Read more about Duane Buziak.