Zero down payment. No PMI. Competitive rates. Here's everything you need to know about VA loans — plus how to stack benefits with a buyer rebate for maximum savings at closing.
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible service members, veterans, and surviving spouses. The VA doesn't lend money directly — it guarantees a portion of the loan, which allows private lenders to offer exceptional terms.
Since 1944, the VA loan program has helped over 28 million veterans achieve homeownership. In 2025, VA loans accounted for roughly 12% of all home purchases — and in military-heavy markets like Virginia, Hawaii, and Texas, that number is significantly higher.
No down payment required on any loan amount up to the conforming limit ($766,550 in most areas for 2026, higher in high-cost counties). This alone saves $15,000-$150,000+ in upfront cash compared to conventional loans requiring 5-20% down.
Conventional loans with less than 20% down require PMI — typically $100-$400/month. VA loans never require PMI, regardless of down payment amount. On a $500,000 home, that's $2,400-$4,800/year saved.
VA loan rates are typically 0.25-0.50% lower than conventional rates because the VA guarantee reduces lender risk. On a $400,000 loan, even 0.25% lower saves roughly $17,000 over 30 years.
Your VA entitlement isn't one-time. It can be restored and reused throughout your lifetime — ideal for PCS moves, upgrading, or transitioning from military to civilian life.
No official minimum credit score from the VA (most lenders require 580-620). Higher debt-to-income ratios accepted (up to 41% standard, sometimes higher with residual income). More forgiving of past financial difficulties.
| Feature | VA Loan | Conventional | FHA |
|---|---|---|---|
| Down Payment | 0% | 3-20% | 3.5% |
| PMI/MIP | None ever | Required under 20% | Required (life of loan) |
| Credit Score Min | 580-620 (lender) | 620+ | 580 (3.5% down) |
| Funding Fee | 1.25-3.3% (waived for disability) | None | 1.75% upfront MIP |
| Rate (typical) | Lowest | Mid | Mid-High |
| Seller Concessions | Up to 4% | 3-9% | Up to 6% |
The VA funding fee is a one-time charge (1.25-3.3% of the loan amount) that funds the VA program. Key facts:
Most VA buyers don't realize they can combine their loan benefits with a buyer rebate for dramatically lower total costs. Here's the math:
| Purchase Price | Traditional Agent (2.5%) | ShopProp Flat Fee | Your Rebate Back |
|---|---|---|---|
| $400,000 | $10,000 | $4,495 | $5,505 back |
| $600,000 | $15,000 | $4,495 | $10,505 back |
| $800,000 | $20,000 | $4,495 | $15,505 back |
| $1,200,000 | $30,000 | $4,495 | $25,505 back |
That rebate can cover your VA funding fee, closing costs, or go straight into your pocket. A $600,000 home with a VA loan and ShopProp buyer rebate means: zero down + $10,505 cash back at closing. No traditional agent arrangement comes close.
VA purchases have unique requirements that most agents handle infrequently. ShopProp's model — a managing broker reviewing every transaction — provides critical oversight:
With 8 state licenses, ShopProp covers many of the nation's largest military installations:
Enter your target purchase price and see your exact rebate amount — instantly.
Calculate Your Rebate Get Started Chat with Our AI AssistantYes. VA loan entitlement can be restored and reused multiple times throughout your lifetime. You can have more than one VA loan at a time if you have remaining entitlement, making it ideal for PCS moves or investment transitions.
No. VA loans offer 100% financing with zero down payment required, regardless of purchase price. This is one of the most significant benefits — no other major loan program offers true zero-down on conforming amounts.
Yes. Buyer rebates are separate from VA loan terms. At ShopProp, buyers pay a flat $4,495 and receive the difference between traditional commission and our fee back as a rebate at closing — often $10,000 to $40,000+ depending on purchase price.
The VA itself has no minimum credit score requirement, but most lenders require a minimum of 580-620. Some lenders specialize in lower-score VA loans. Higher scores (680+) typically get the best rates.
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