A VA loan lets eligible veterans, active-duty service members, qualifying Guard and Reserve members and eligible surviving spouses buy a primary residence with no down payment and no monthly mortgage insurance, backed by a VA guaranty. With full entitlement there is no VA loan limit; the ceiling is what you qualify for on income, credit and residual income. A one-time funding fee applies unless you are exempt, most commonly for a service-connected disability rating.
Who this is for
Veterans, active-duty service members, Guard and Reserve members with qualifying service, and eligible surviving spouses. Around Nellis, Creech and Joint Base San Antonio that includes a lot of buyers mid-PCS who need a lender who understands orders, BAH and a closing date set by the Air Force rather than the seller.
How qualification works
The VA guarantees a portion of the loan; a lender like Note Mortgage underwrites and funds it under VA rules plus its own overlays. Three things drive approval:
- Eligibility, proven with a Certificate of Eligibility that I can pull for you from the VA portal in minutes.
- Entitlement, the amount of guaranty available to you. Full entitlement means no loan limit; partial entitlement, usually because a prior VA loan is still open, brings county limits back into play.
- Residual income and debt ratio. VA underwriting looks at what is left each month after the mortgage, taxes and debts, by region and family size, alongside the usual debt-to-income ratio. That residual test is why VA can approve files conventional guidelines reject, and why it sometimes rejects files that pass everywhere else.
What I evaluate before it goes to underwriting
- Whether your entitlement is full or partial, and whether a prior VA loan needs a restoration request first
- Funding-fee exemption: a disability rating changes cash to close materially, and the award letter has to be in the file
- BAH and continuance of income around a PCS, separation date or retirement inside 12 months
- Residual income by region and family size before you fall in love with a payment
- New construction: whether the builder is VA-registered and how the incentive interacts with VA appraisal and concession rules
What documentation is needed
- Certificate of Eligibility (I request it)
- DD-214, or a Statement of Service for active duty
- Most recent LES or pay stubs, and two months of bank statements
- VA disability award letter if you are funding-fee exempt
- Two years of tax returns with W-2s if you have other income; full checklist
Send everything as complete PDFs. Why, and how.
Common underwriting issues
- Partial entitlement discovered late, because an old VA loan was assumed or is still open in the VA system
- Separation or retirement within a year of closing without documented post-service income
- A property that does not meet VA Minimum Property Requirements at appraisal, common on older resale homes and some manufactured homes
- Seller concession requests above the 4% VA cap, which has to be structured as closing costs instead
- Residual income shortfalls on larger families in high-cost months
Down payment, reserves and pricing
No down payment is required with full entitlement. There is no monthly mortgage insurance. The VA funding fee is a one-time charge, usually financed into the loan, that varies with down payment and whether it is your first VA use; it is waived for borrowers with a qualifying service-connected disability rating and certain surviving spouses. Sellers may pay all customary closing costs plus concessions of up to 4% of the loan. Reserves are not generally required on VA purchases, though underwriting can ask for them on multi-unit properties or weaker files.
Nevada and Texas considerations
Nevada: Nellis and Creech families often buy in the northwest valley and Aliante, where master-planned communities carry special improvement district assessments on top of HOA dues. Those go in the payment before residual income is calculated. Las Vegas details.
Texas: A 100% service-connected rating carries a total homestead property-tax exemption under Tax Code §11.131, which can remove several hundred dollars a month from a JBSA-area payment and change both qualification and the house. The Texas Veterans Land Board also posts its own rate program with a discount for a 30% or higher rating, which is worth pricing against straight VA on every eligible file. San Antonio details.
Example scenario
A staff sergeant PCSing to JBSA-Randolph with orders dated for November, full entitlement, and a 40% disability rating. Funding fee exempt, so cash to close is essentially prepaids and a small inspection bill. We pull the COE the same afternoon, qualify on BAH at the new duty station, and structure a seller-paid temporary buydown instead of a price cut because the resale market gives buyers that leverage right now. Closing is set to the report date, not the seller's preference.
Common questions
Do I need perfect credit for a VA loan?
No. The VA sets no minimum score; lenders do, and it is typically lower than conventional. Residual income and payment history matter more than the score itself.
Can I use VA more than once?
Yes. Entitlement restores when a prior VA loan is paid off and the home is sold, and a one-time restoration is available even if you keep the first home. With remaining entitlement you can also carry two VA loans at once, subject to county limits on the second.
Can I buy new construction with a VA loan?
Yes, with a VA-registered builder. I work builder communities in San Antonio's northwest corridor weekly and review every builder incentive against VA concession and appraisal rules before you sign.
What is an IRRRL?
The Interest Rate Reduction Refinance Loan: a VA streamline refinance with minimal documentation and no appraisal in most cases, used to lower the rate on an existing VA loan.
Sources
VA Home Loans (va.gov) · VA funding fee and closing costs · Texas Veterans Land Board · Texas Comptroller, disabled veteran exemptions
Guidelines are the agencies'; lenders add overlays and change them. Every figure on this page was checked on the review date below and is confirmed again against your file before it goes in a quote.
