VA Loan Benefits Explained: Zero Down, No PMI, and How to Use Your BAH

Video 4 of 4 | Home Buying 101 Series

If you’ve served in the U.S. military, you may have access to one of the most powerful tools in homeownership — the VA loan. With $0 down payment, no PMI, and competitive interest rates, this program can help you buy a home with less cash upfront and more flexible requirements. Here’s what you need to know.

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What Is a VA Loan?

A VA loan is a mortgage option backed by the U.S. Department of Veterans Affairs. It’s available to active-duty service members, veterans, certain National Guard and Reserve members, and eligible surviving spouses.

Unlike other mortgages, VA loans:

• Require no down payment in most cases
• Don’t require private mortgage insurance
• Offer competitive interest rates
• Have more flexible credit requirements

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Who Qualifies for a VA Loan?

You may be eligible if you:

• Are active-duty with at least 90 continuous days of service
• Are a veteran with 90 days of wartime service or 181 days of peacetime service
• Served at least 6 years in the National Guard or Reserves
• Are an eligible surviving spouse of a service member who died in service or from a service-connected disability

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What Is VA Entitlement?

VA entitlement is the amount the VA guarantees to the lender on your behalf.

• Full entitlement: No loan limit; borrow as much as you qualify for with no down payment.
• Partial entitlement: If you have another active VA loan or have lost entitlement through foreclosure, you may still qualify — but might need a small down payment.

You can reuse your VA loan benefit multiple times, and in many cases, restore full entitlement after selling or paying off a VA-financed home.

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Primary Residence Requirement

VA loans can only be used for a primary residence — not for second homes, vacation properties, or investment homes. You must intend to occupy the property within 60 days of closing.

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Using BAH to Pay Your Mortgage

If you’re active-duty, you can use your Basic Allowance for Housing (BAH) toward your monthly mortgage payment. Since BAH is tax-free and counts as qualifying income, it can cover — or even exceed — your housing costs.

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Certificate of Eligibility (COE)

Before you can apply, you’ll need a COE to prove you’re eligible and show your entitlement amount. You can get your COE online through the VA, or your lender can request it for you during pre-approval.

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VA Funding Fee

Most borrowers pay a one-time VA funding fee to keep the program running, but this can be financed into the loan. Veterans with service-connected disabilities may be exempt.

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📌 Bottom Line:
The VA loan is one of the most flexible and affordable home financing options for those who’ve served. Whether you’re buying your first home or your next one, this benefit can help you achieve homeownership without the financial hurdles of a traditional loan.

💬 If you’re wondering what you might qualify for, I can connect you with trusted VA lenders who will walk you through your options.

Just remember – this is general information, not professional financial advice, and may not be specific to your situation. It’s always best to consult your financial advisor or CPA before implementing any financial advice.