Virginia VA Loan Guide for Veterans
Virginia is home to a proud and vibrant community of veterans, active-duty service members, and their families, all of whom can take advantage of the valuable benefits offered by VA loans.
VA loans in Virginia provide an exceptional pathway to homeownership, featuring no down payment, competitive interest rates, and no private mortgage insurance. These benefits significantly reduce financial barriers, making it easier for those who have served to purchase a home.
Whether you are drawn to the historic charm of Richmond, the bustling energy of Virginia Beach, or the serene landscapes of the Shenandoah Valley, VA loans make homeownership accessible throughout the state.
This guide will help you navigate the VA loan process, covering everything from eligibility and application steps to local homebuyer programs and property tax exemptions, ensuring a smooth and successful homebuying experience.
What are VA Loans?
VA home loans, provided by the U.S. Department of Veterans Affairs, are designed to help eligible veterans, active-duty service members, and certain surviving spouses achieve homeownership. These loans remove traditional hurdles by eliminating down payments and private mortgage insurance (PMI), reducing both initial costs and ongoing payments.
A major advantage of VA loans is their competitive interest rates, which are often lower than those of conventional loans, resulting in long-term savings. The program also offers more lenient credit requirements, making it a great option for individuals who may have difficulty qualifying for other loan types.
VA Loan Benefits
VA loans offer distinct advantages, making them an exceptional choice for veterans, active-duty service members, and eligible surviving spouses. Key benefits include:
No Down Payment
Unlike conventional loans that often require a down payment starting at 3% or more, VA loans remove this hurdle, enabling buyers to allocate funds toward other priorities, such as investments or savings goals. For military families, this can be a game-changer.
Lower Interest Rates
Lower rates mean significant savings over the life of the loan, reducing monthly payments and overall costs. This advantage also increases purchasing power, allowing veterans to afford higher-value homes without exceeding their budget.
Flexible Credit Guidelines
While credit score requirements vary by lender, VA loans often accept scores as low as 620. They also allow for higher debt-to-income (DTI) ratios and provide shorter waiting periods after financial setbacks like bankruptcies or foreclosures.
Limited Closing Costs
Sellers can pay all the buyer’s loan-related closing costs and contribute up to 4% of the loan amount in concessions. Additionally, VA borrowers are exempt from certain fees, further reducing out-of-pocket expenses.
No Private Mortgage Insurance (PMI)
This saves veterans hundreds of dollars annually and maximizes their purchasing power, allowing them to afford more home within their budget. FHA loans, which require both upfront and monthly mortgage insurance premiums, also lack this advantage.
Lifetime Eligibility
VA loan benefits are available for a lifetime, allowing eligible borrowers to reuse them multiple times as long as entitlement criteria are met.
Whether purchasing a first home, upgrading to a larger property, or buying a vacation home, veterans can rely on VA loans at every stage of life. Even if a prior VA loan default occurred, eligibility can often be restored by repaying the loan or reclaiming entitlement. This ensures long-term access to affordable financing options.
Local Virginia Homebuyer Programs
Virginia Beach Housing Resource Center – Homeownership Program
Virginia Beach offers financial assistance to help first-time buyers achieve homeownership.
- Provides up to $40,000 in deferred loans for down payment and closing costs.
- Available to income-qualified first-time homebuyers.
- Requires completion of a homebuyer education course.
Learn more about the Virginia Beach Homeownership Program.
Virginia Housing (VHDA) Down Payment Assistance Grant
This statewide program helps Virginia Beach residents with financial assistance for homeownership.
- Offers up to 2.5% of the home’s purchase price for down payment assistance.
- Available for first-time and low-to-moderate-income buyers.
- Can be paired with other VHDA loan programs.
Learn more about the VHDA Down Payment Assistance Grant.
Habitat for Humanity South Hampton Roads – Affordable Housing Program
Habitat for Humanity partners with eligible families in Virginia Beach to provide affordable housing solutions.
- Offers interest-free mortgages to qualifying buyers.
- Requires homebuyer education and “sweat equity” participation.
- Designed for income-qualified families.
Learn more about Habitat for Humanity’s Program.
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Richmond Down Payment Assistance Program
Richmond provides financial assistance to eligible first-time homebuyers.- Up to $20,000 in down payment and closing cost assistance.
- Available to income-eligible households.
- Zero-interest loans with deferred repayment.
Learn more about Richmond’s Down Payment Assistance Program.
Virginia Housing – Closing Cost Assistance Program
This statewide program is accessible to Richmond homebuyers to ease upfront costs.- Provides up to $5,000 in assistance for closing costs.
- Available for first-time buyers with low-to-moderate income.
- Pairs with other Virginia Housing loan options.
Learn more about the Closing Cost Assistance Program.
Better Housing Coalition (BHC) – Homeownership Program
The Better Housing Coalition supports Richmond residents with affordable housing opportunities.- Provides financial counseling and assistance with home purchase.
- Offers homes at below-market prices for income-qualified buyers.
- Includes homebuyer education programs.
Learn more about the Better Housing Coalition Program.
Norfolk Down Payment Assistance Program
Norfolk offers financial assistance to help first-time homebuyers.
- Provides up to $20,000 for down payment and closing costs.
- Available to income-qualified buyers.
- Requires homebuyer education and counseling.
Learn more about Norfolk’s Down Payment Assistance Program.
Virginia Housing (VHDA) Mortgage Credit Certificate Program
This statewide program benefits Norfolk buyers with tax savings.
- Provides up to $2,000 annually in federal tax credits.
- Available for first-time and income-qualified buyers.
- Pairs with Virginia Housing loans.
Learn more about the VHDA Mortgage Credit Certificate Program.
Habitat for Humanity of South Hampton Roads – Affordable Housing Program
This program partners with Norfolk residents to offer affordable homeownership options.
- Provides interest-free mortgages for income-qualified families.
- Requires homebuyer education and volunteer participation.
- Offers affordable housing solutions for low-income families.
Learn more about Habitat for Humanity’s Program.
Chesapeake Redevelopment and Housing Authority (CRHA) Homeownership Program
The CRHA assists Chesapeake residents with achieving homeownership.
- Provides down payment and closing cost assistance.
- Offers affordable mortgage options for income-eligible buyers.
- Requires completion of homebuyer education courses.
Learn more about the CRHA Homeownership Program.
Virginia Housing (VHDA) Down Payment Assistance Grant
Chesapeake residents can access this statewide program for financial support.
- Offers up to 2.5% of the home’s purchase price for down payment help.
- Available to first-time and income-qualified buyers.
- Can be combined with other Virginia Housing loan products.
Learn more about the VHDA Down Payment Assistance Grant.
Habitat for Humanity South Hampton Roads – Homeownership Program
Habitat for Humanity partners with low-income families in Chesapeake to create affordable housing opportunities.
- Provides interest-free mortgages and affordable payment plans.
- Requires “sweat equity” and financial education.
- Designed for income-qualified households.
Learn more about Habitat for Humanity’s Program.
Arlington County Moderate Income Purchase Assistance Program (MIPAP)
This program supports moderate-income first-time homebuyers in Arlington.
- Offers up to 25% of the home’s purchase price as assistance.
- Designed for income-qualified buyers.
- Requires homebuyer education completion.
Learn more about Arlington’s MIPAP.
Virginia Housing – Closing Cost Assistance Program
Arlington residents can benefit from this program for upfront cost assistance.
- Provides up to $5,000 for closing costs.
- Available to first-time buyers with low-to-moderate income.
- Works in tandem with Virginia Housing loans.
Learn more about the Closing Cost Assistance Program.
Habitat for Humanity of Northern Virginia – Affordable Housing Program
This program assists Arlington residents with affordable homeownership opportunities.
- Offers interest-free mortgages for income-qualified buyers.
- Requires homebuyer education and volunteer participation.
- Focuses on creating sustainable housing for families.
Learn more about Habitat for Humanity’s Program.
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet certain service-related criteria set by the Department of Veterans Affairs (VA). These requirements ensure that veterans, active-duty service members, and their families have access to this benefit to assist in homeownership.
Eligibility Criteria:
- Veterans: Those who have completed active-duty service and received an honorable or qualifying discharge.
- Active-Duty Service Members: Current members of the military are eligible for VA loans.
- National Guard and Reserve Members: Must have served at least six years or completed 90 days of active-duty service during wartime.
- Surviving Spouses: Spouses of service members who passed away during service or from service-related conditions may be eligible for VA loan benefits.
Minimum Service Time Requirements:
- 90 days of active-duty service during wartime.
- 181 days of continuous active-duty service during peacetime.
- At least six years of service in the National Guard or Reserves, or a minimum of 90 days of active-duty service under Title 32 orders, including 30 consecutive days.
VA Loan Eligibility Calculator
How to Obtain a Certificate of Eligibility (COE)
Obtaining a VA Certificate of Eligibility (COE) is an essential step in securing a VA loan. This certificate confirms that you meet the service requirements established by the Department of Veterans Affairs.
How to Apply:
- Online: Use the VA’s eBenefits portal for a quick and easy application process.
- Through a Lender: Many VA-approved lenders can request your COE electronically on your behalf.
- By Mail: Complete and submit VA Form 26-1880 to the VA. This method may take longer.
Required Documents:
- Veterans: DD Form 214, which outlines your service history and discharge status.
- Active-Duty Service Members: A statement of service signed by your commanding officer.
- National Guard/Reserve Members: Point statements and proof of service, if not activated.
- Surviving Spouses: A marriage license and the veteran’s death certificate to verify eligibility
Virginia Housing Market Overview
Virginia’s housing market offers diverse living options, from the bustling metropolitan areas of Northern Virginia to the picturesque charm of the Blue Ridge Mountains and coastal regions. The state’s strong economy, rich history, and proximity to federal employment hubs attract many homebuyers, including veterans. The median home price in Virginia is approximately $390,000, making it slightly higher than the national average but still accessible for many, especially with VA loan benefits.
| City | Average Home Price | Average VA Mortgage Payment* |
|---|---|---|
| Virginia Beach | $420,000 | $2,797 |
| Richmond | $360,000 | $2,397 |
| Norfolk | $330,000 | $2,197 |
| Alexandria | $590,000 | $3,927 |
| Roanoke | $310,000 | $2,066 |
The VA mortgage payment is based on a 30-year fixed loan at 6.5% interest with zero down payment. Actual payments may vary.
Virginia VA Loan Limit
$1,089,300
Veterans with full entitlement can borrow up to the lender-approved amount without a down payment. For veterans with partial entitlement, the loan limit for most counties in Virginia is $1,089,300, particularly in higher-cost areas such as Northern Virginia. Always consult with lenders to confirm your specific loan eligibility and options.
Virginia Housing Programs for Veterans
Virginia Housing – Down Payment Assistance Grant
Virginia Housing offers financial assistance to eligible veterans and active-duty service members to help with home purchases.
- Provides up to 2.5% of the home price in down payment assistance.
- Available to first-time and repeat buyers with income qualifications.
- Can be paired with Virginia Housing mortgage options.
Learn more at the Virginia Housing Down Payment Assistance page.
Habitat for Humanity Virginia – Veterans Housing Program
Habitat for Humanity chapters across Virginia partner with veterans to provide affordable homeownership opportunities.
- Veterans can contribute “sweat equity” to reduce costs.
- Offers affordable mortgage options and financial counseling.
- Promotes long-term housing stability for veterans and their families.
Visit Habitat for Humanity Virginia for more details.
Virginia Property Tax Exemption for Disabled Veterans
Virginia provides property tax relief for veterans with service-connected disabilities.
- Offers a full property tax exemption on the veteran’s primary residence.
- Extends eligibility to surviving spouses of disabled veterans.
- Significantly reduces the cost of homeownership for eligible veterans.
Learn more through the Virginia Department of Taxation website.
Types of VA Loans
The Department of Veterans Affairs provides a variety of loan options to support veterans, active-duty service members, and their families.
VA Purchase Loan
The VA Purchase Loan allows veterans to buy homes with no down payment and competitive interest rates.
- 100% financing with no down payment required.
- Covers single-family homes, VA-approved condos, and multi-unit properties.
- Offers lower interest rates compared to conventional loans.
Learn more about the VA Purchase Loan.
Interest Rate Reduction Refinance Loan (IRRRL)
The IRRRL helps veterans refinance their existing mortgage to secure a lower interest rate and reduce monthly payments.
- Requires minimal documentation and no appraisal.
- Reduces monthly payments by lowering interest rates.
- Features low closing costs, often rolled into the loan.
Learn more about the IRRRL.
Cash-Out Refinance Loan
The Cash-Out Refinance Loan allows veterans to tap into their home equity for home improvements, debt consolidation, or other financial needs.
- Access up to 100% of your home equity.
- Can refinance both VA and non-VA loans.
- Offers flexible use of funds to meet financial goals.
Learn more about the Cash-Out Refinance Loan.
VA Renovation Loan
The VA Renovation Loan combines the cost of home purchase and renovation into one loan, simplifying the process.
- Covers essential repairs, including structural upgrades.
- Supports modernization projects like energy-efficient improvements.
- Rolls renovation costs into a single loan.
Learn more about the VA Renovation Loan.
Energy Efficient Mortgage (EEM)
The VA EEM helps veterans finance eco-friendly upgrades to reduce utility costs.
- Covers energy-efficient improvements such as solar panels and insulation.
- Integrates with other VA loan options for combined financing.
- Reduces long-term energy expenses.
Learn more about the VA EEM.
Frequently Asked Questions
What is a VA loan, and how does it work?
A VA loan is a government-backed mortgage designed to help eligible veterans, active-duty service members, and surviving spouses buy, build, or refinance a home. VA loans feature no down payment, competitive interest rates, and no private mortgage insurance (PMI), making homeownership more affordable.
What are the benefits of a VA loan in Virginia?
Virginia veterans benefit from:
- No down payment requirement.
- Lower interest rates compared to conventional loans.
- No PMI, reducing monthly costs.
- Flexible credit and income requirements.
- Options for purchasing, refinancing, or renovating homes.
How do I qualify for a VA loan in Virginia?
Eligibility depends on service history, duty status, and discharge type. Requirements include:
- A Certificate of Eligibility (COE) from the VA.
- Meeting lender-specific credit and income standards.
- Intending to use the home as your primary residence.
What is the VA funding fee, and do I have to pay it?
The VA funding fee is a one-time payment that supports the loan program. It varies by loan type, down payment amount, and usage history. Some veterans, such as those with service-connected disabilities, are exempt from paying this fee.
Can I use a VA loan to buy a home in Virginia’s rural areas?
Yes, VA loans can be used to purchase homes in rural Virginia, including single-family homes, manufactured homes, or VA-approved condos, as long as the property meets VA standards.
Are there VA loan limits in Virginia?
Veterans with full entitlement can borrow up to the lender-approved amount with no down payment. For those with partial entitlement, Virginia’s VA loan limits for 2024 vary by county, ranging from $766,550 to higher amounts in high-cost areas.
Can I refinance my home in Virginia with a VA loan?
Yes, refinancing options include:
- Interest Rate Reduction Refinance Loan (IRRRL): Reduces your interest rate and monthly payments.
- Cash-Out Refinance Loan: Lets you access your home equity for expenses like home improvements or debt consolidation.
What credit score do I need to qualify for a VA loan in Virginia?
The VA doesn’t set a minimum credit score, but most lenders require a score between 580 and 620. Other financial factors, such as income and debt-to-income ratio, are also considered.
Can I buy a multi-family property with a VA loan in Virginia?
Yes, VA loans can finance multi-family properties with up to four units. However, you must live in one of the units as your primary residence.
Are there closing costs with VA loans in Virginia?
Yes, VA loans include closing costs such as appraisal fees, title insurance, and origination fees. However, these costs are often lower than conventional loans, and sellers can sometimes cover a portion of the fees.
Can I use a VA loan to renovate a home in Virginia?
Yes, VA Renovation Loans allow you to finance both the purchase of a home and the cost of renovations in a single loan. This includes essential repairs, upgrades, and energy-efficient improvements.
What assistance programs are available for veterans buying homes in Virginia?
Virginia offers various programs, such as:
- Virginia Housing Development Authority (VHDA): Provides down payment and closing cost assistance.
- Disabled Veteran Property Tax Exemption: Offers property tax relief for veterans with service-connected disabilities.
Visit local VA offices or housing agencies for more details.
Can surviving spouses use a VA loan in Virginia?
Yes, surviving spouses of veterans who died in service or due to a service-connected disability may qualify for VA loans. Eligibility requires documentation and a Certificate of Eligibility (COE).
What types of properties can I buy with a VA loan in Virginia?
VA loans can be used to purchase:
- Single-family homes.
- VA-approved condominiums.
- Multi-family properties with up to four units.
- Manufactured homes (if they meet VA guidelines).
Are VA loans only for first-time homebuyers in Virginia?
No, VA loans are available to eligible veterans and service members regardless of whether it’s their first home purchase or not. You can use your VA loan benefits multiple times if entitlement is restored or remaining entitlement is sufficient.