A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members and some surviving spouses. Its main benefits are that eligible buyers can often finance 100% of the purchase price with no down payment and no monthly mortgage insurance. Eligibility and terms are set by the VA and by individual lenders.
Main benefits of a VA loan
- No down payment for eligible borrowers in many cases.
- No monthly mortgage insurance, which can lower your payment compared to other low-down-payment loans.
- Flexible credit guidelines compared with many conventional loans, though lenders set their own minimums.
- Limits on certain closing costs the buyer can be charged.
The VA funding fee
Most VA loans carry a one-time funding fee that can be paid at closing or financed into the loan. The amount depends on your down payment, whether it is your first VA loan, and your type of service. Some borrowers, such as those receiving VA disability compensation, may be exempt. Ask your loan officer to show the exact number on your Loan Estimate.
Who is eligible
Eligibility depends on your length and type of service. You will need a Certificate of Eligibility (COE), which we can help you request. Surviving spouses of certain service members may also qualify.
What else lenders look at
- Credit history and score
- Stable income and debt-to-income ratio
- The property, which must meet VA standards and be your primary residence
New Jersey property tax benefits for veterans
New Jersey offers property tax benefits to some veterans, including certain disabled veterans and surviving spouses. These are handled through your municipality and the state, not through the mortgage itself. Ask your loan officer about timing, because the paperwork can affect your escrow and monthly payment.
Why use a broker for a VA loan
Lenders differ on credit minimums, appraisal timing and how fast they close. A broker can compare VA programs across many lenders and match you with one that fits your file. Watch our short video on buying with no down payment as a veteran, and read one client's story on our Zillow reviews page.
Frequently asked questions
Can I use a VA loan more than once?
Yes, in many cases. Remaining entitlement and prior VA loan status affect how much you can borrow without a down payment.
Can I use a VA loan for a condo?
Often yes, if the condo project is VA approved. Ask your loan officer to check before you make an offer.
Where can I learn more?
See the JahnLends VA loan page or call (732) 754-7474.
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VA eligibility, fees and guidelines are set by the Department of Veterans Affairs and may change. JahnLends is the Woodbridge, NJ branch of AMS Mortgage Services, NMLS# 145742. Equal Housing Opportunity. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Other restrictions may apply.