The VA loan is the best mortgage program in the country for the people who’ve earned it: no down payment, no monthly mortgage insurance, and competitive rates. I’ve been originating VA loans since 2003. Here’s how the pieces work.
Certificate of Eligibility (COE)
The COE is the VA’s confirmation that you’ve earned the home loan benefit through your service. I can usually pull it for you directly from the VA’s system in a few minutes. It also shows whether you’re exempt from the funding fee, which is why it’s one of the first things we get.
The VA funding fee
This is a one-time fee paid to the VA, not to me or the lender. It’s what keeps the program running with no down payment and no monthly mortgage insurance. Most people add it to the loan rather than paying it at closing. If you receive VA disability compensation, you’re typically exempt entirely, and the COE will show that.
| Purchase | First Use | Subsequent Use |
|---|---|---|
| Less than 5% down | 2.15% | 3.30% |
| 5% to 9.99% down | 1.50% | 1.50% |
| 10% or more down | 1.25% | 1.25% |
Example: $400,000 loan, first use, nothing down: 400,000 x 2.15% = $8,600, making the loan $408,600.
The VA appraisal
Like any appraisal, it confirms value. The VA appraiser also checks that the home is safe, sound, and sanitary: working heat, water, and electrical, a roof with remaining life, no active leaks, and no peeling paint on older homes. If something doesn’t meet that standard, it usually gets repaired before closing. This is normal and it protects you.
Loan amounts
With full entitlement there’s no VA-imposed loan limit, but lenders price loans above the conforming limit ($832,750 in Clark County and the Portland metro for 2026) as jumbo VA, and there’s more variety in how those are priced. If you’re near that line, ask me.
VA refinances
The VA streamline (IRRRL) lets you lower your rate with minimal paperwork and often no appraisal. One thing to know: VA limits how much cash you can receive back at closing on a streamline to about $500, so the loan amount has to be set precisely for the day you close. Cash-out VA refinances are a separate program with an appraisal and full qualifying.
Working with a broker on a VA loan
Not every lender prices VA the same, and some are noticeably better on VA than on anything else. Because I broker, I shop your VA loan across lenders rather than taking one bank’s rate sheet.