The Benefits of a VA Home Loan
By Mike Baker · Mortgage Loan Originator · NMLS #259076
Originally published December 1, 2023 · Updated September 29, 2026 · Kansas & Missouri
The short answer: A VA-backed home loan can offer eligible borrowers a no-down-payment path and no monthly mortgage insurance. Eligibility, lender approval, property requirements, and closing costs still matter. Military service does not automatically mean every fee is waived or every loan is approved.
Start with eligibility—and a comfortable budget
A Certificate of Eligibility, or COE, helps establish your VA home-loan benefit. It is not the same as a mortgage approval. The lender must still review credit, income, obligations, and other requirements, and the home must meet applicable program standards.
Review the VA’s purchase-loan guidance. Mike can help Kansas and Missouri borrowers understand how the benefit fits a particular purchase and what documentation is needed.
No down payment does not mean no cash needed
Eligible buyers may purchase without a down payment when the transaction meets VA and lender requirements. Your available entitlement, the purchase price, appraised value, and loan structure can affect the amount needed.
You may still need money for closing costs, prepaid taxes and insurance, inspections, moving, and a cushion after closing. Ask for a complete cash-to-close estimate before deciding how much savings you can comfortably use.
Understand the funding fee correctly
The VA funding fee is separate from monthly mortgage insurance. Some borrowers qualify for an exemption, but active-duty status alone does not automatically waive it. Eligible disability-compensation status and certain other circumstances may qualify. Verify your status against the VA’s official funding-fee rules.
If a fee is financed, it increases the loan balance. Ask to see both the initial cash required and the resulting amount owed.
Compare benefits without assuming a guaranteed rate advantage
Monthly mortgage insurance: VA loans do not require monthly PMI or FHA-style mortgage insurance.
Interest rate: Rates and costs vary by lender and scenario. An old “VA rates are 1% lower” claim is not a current quote or a guarantee.
Credit: Lender credit requirements still apply. A program benefit does not remove underwriting.
Payment: Include taxes, homeowners insurance, and association dues when applicable—not only principal and interest.
Already used your VA benefit?
Do not assume the benefit is a one-time opportunity, but do not assume your next purchase has identical terms either. Ask for a review of your entitlement and current obligations. If you already have a VA mortgage and want to refinance, a VA IRRRL is a different conversation from buying another home or taking cash out.
Bring these questions: What will I need at closing? What will the complete monthly payment be? Which approval conditions remain? Is my funding-fee status verified?
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Mike Baker · The Rate Shop · 913-213-3335 · mike@rateshopkc.com
Educational information, not a commitment to lend. Eligibility, costs, and terms vary by borrower, property, program, and lender.
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