Virginia veterans and active military members can purchase a home with zero down payment, no PMI, and competitive interest rates through VA loans. This guide covers everything you need to know about VA loans in Virginia—from eligibility requirements to current rates and the application process.
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, designed to help veterans, active-duty service members, and eligible surviving spouses become homeowners. Created in 1944 through the GI Bill, VA loans have helped over 24 million veterans purchase homes nationwide.
The VA doesn't actually lend money—instead, it guarantees a portion of the loan (typically 25%) issued by private lenders. This guarantee allows lenders to offer significantly better terms than conventional mortgages, including zero down payment, no private mortgage insurance requirement, and competitive interest rates.
In Virginia, home to over 750,000 veterans and major military installations including Naval Station Norfolk, Joint Base Langley-Eustis, Marine Corps Base Quantico, and Fort Gregg-Adams, VA loans represent one of the most powerful homeownership tools available.
Unlike FHA or conventional loans, VA loans offer a unique combination of benefits that can save Virginia borrowers tens of thousands of dollars over the life of their loan.
VA loans allow qualified borrowers to purchase a home with absolutely no down payment, up to $806,500 in most Virginia counties (2025 conforming loan limit). Northern Virginia's higher-cost counties have limits up to $1,089,300.
Real Virginia example: A veteran purchasing a $300,000 home in Lynchburg needs $0 down with a VA loan, compared to $60,000 (20%) for conventional or $10,500 (3.5%) for FHA.
For homes above the county loan limit, borrowers must make a down payment of 25% of the amount exceeding the limit.
Conventional loans require PMI when your down payment is less than 20%, typically costing 0.5-1% of the loan amount annually. On a $300,000 loan, that's $1,500-$3,000 per year ($125-$250 monthly).
VA loans never require PMI, regardless of down payment. Over a 30-year mortgage, eliminating PMI saves $45,000-$90,000.
VA loans consistently offer interest rates 0.25% to 0.50% lower than conventional loans. This rate advantage exists because the VA guarantee reduces lender risk.
Rate impact on $300,000, 30-year loan:
Combined with no PMI, total monthly savings reach $250/month or $90,000 over 30 years.
The VA has no official minimum credit score requirement. Most Virginia lenders prefer credit scores of 620 or higher, though some will approve VA loans with scores as low as 580-600.
VA loans also allow higher debt-to-income ratios than conventional loans—up to 50%+ with strong compensating factors, compared to the typical 43% conventional limit.
Residual income requirements: VA loans uniquely consider "residual income"—money left over after paying all debts and estimated living expenses. For Virginia (South region), a 4-person family needs at least $976/month in residual income for loans over $79,999.
The VA limits which closing costs veterans can pay and allows sellers to pay up to 4% of the home price toward buyer's closing costs—higher than the 3% limit on conventional loans.
Prohibited costs for veterans:
With 4% seller concessions, many Virginia veterans buy homes with minimal cash out of pocket beyond earnest money.
VA loans never include prepayment penalties. You can pay extra toward principal, make additional payments, or pay off your entire loan early without any fees.
You must have received an honorable discharge or general discharge under honorable conditions.
The Certificate of Eligibility proves you qualify for a VA loan. Lenders require this before approving your loan.
How to obtain your COE:
Documents needed: DD-214 (veterans) or Statement of Service (active duty)
Virginia disability income: If you receive VA disability benefits, this tax-free income can be "grossed up" by 25% when calculating qualifying income.
Property types that qualify: Single-family homes, Condominiums (if VA-approved), Townhouses, Multi-family (2-4 units, if you occupy one), Manufactured homes (if meeting HUD standards).
As of 2025, eligible veterans with full entitlement can borrow up to $806,500 with zero down payment in most Virginia counties. Northern Virginia has elevated limits due to higher housing costs.
| County/City | 2025 Loan Limit |
|---|---|
| High-Cost Counties | |
| Arlington County | $1,089,300 |
| Fairfax County | $1,089,300 |
| Falls Church City | $1,089,300 |
| Loudoun County | $1,089,300 |
| Alexandria City | $1,089,300 |
| Fairfax City | $1,089,300 |
| All Other Virginia Counties | $806,500 |
This includes Lynchburg, Harrisonburg, Bristol, Winchester, Blacksburg, Richmond, Hampton Roads, and all other Virginia cities and counties.
Lynchburg veteran, $350,000 home:
Fairfax veteran, $1,200,000 home:
Restoring entitlement: If you've used a VA loan before and sold the property/paid off the loan, your full entitlement is restored.
| Loan Type | Average Rate | APR | Monthly Payment* |
|---|---|---|---|
| 30-Year Fixed VA | 6.50% | 6.65% | $1,264 |
| 15-Year Fixed VA | 6.00% | 6.15% | $1,687 |
| 5/1 ARM VA | 6.125% | 6.60% | $1,214 |
*Based on $200,000 loan, excellent credit (740+)
| Loan Type | Rate | Monthly Payment* | With PMI/MIP |
|---|---|---|---|
| VA Loan | 6.50% | $1,264 | No PMI |
| Conventional | 7.00% | $1,331 | +$100 = $1,431 |
| FHA Loan | 6.75% | $1,297 | +$95 = $1,392 |
* $200,000 loan, P&I only
Virginia rates align closely with national averages. Hampton Roads and Northern Virginia have the most competitive rates due to high VA loan volume.
Timeline: 30-45 days from application to closing.
Apply online at eBenefits.va.gov or have your lender request it. Most veterans receive instant approval. You'll need your DD-214 or Statement of Service.
Submit application to a VA-experienced lender. Provide:
Lender verifies employment, income, assets, and credit. You'll receive a pre-approval letter showing your maximum loan amount.
Work with a VA-savvy real estate agent to find homes meeting VA requirements. Include your pre-approval letter with offers. In competitive Virginia markets like Hampton Roads or Northern Virginia, pre-approval is essential.
Request seller concessions (up to 4%) in your offer to help cover closing costs.
Lender orders VA appraisal ($500-$700) from VA-approved appraiser. The appraisal verifies market value and ensures the property meets VA Minimum Property Requirements.
If appraisal comes in low: Renegotiate price, pay difference in cash, or walk away.
Common Virginia appraisal issues:
Required repairs must be completed before closing at seller's expense.
Underwriter reviews all documentation and may request additional information ("conditions"). Once satisfied, you'll receive "clear to close" status.
Review and sign loan documents at closing. Bring cashier's check or wire transfer for closing costs (if not seller-paid). Receive keys to your new Virginia home.
You must move in within 60 days of closing.
One-time fee helping fund the VA loan program without taxpayer expense:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0-4.99% | 2.15% | 3.3% |
| 5-9.99% | 1.5% | 1.5% |
| 10%+ | 1.25% | 1.25% |
Example: $300,000 loan, 0% down, first use = $6,450 funding fee (typically financed into loan).
Who's exempt:
This exemption saves thousands—$6,450 on a $300,000 loan.
On $300,000 purchase in Virginia:
| Cost Item | Amount |
|---|---|
| VA Funding Fee | $6,450 (usually financed) |
| Appraisal | $600 |
| Title Insurance | $1,200 |
| Recording Fees | $75 |
| Pest Inspection | $100 |
| Homeowners Insurance | $1,200 |
| Other fees | ~$600 |
| Total | ~$10,225 |
With funding fee financed and 4% seller concessions ($12,000), you could buy with minimal cash out of pocket.
Sellers can pay up to 4% of purchase price toward buyer closing costs—more than conventional loans (3% limit).
This can cover:
Choose lenders with strong VA loan experience, competitive rates, and fast closings.
| Feature | VA Loan | Conventional |
|---|---|---|
| Down Payment | 0% | 3-20% |
| PMI | None | Required if <20% down |
| Credit Score | 620+ preferred | 620+ minimum |
| Interest Rate | 6.50% avg | 7.00% avg |
| Debt-to-Income | Up to 50%+ | Usually 43% max |
VA (0% down):
Conventional (5% down):
VA requires $0 down vs $15,000, with similar monthly payment.
| Feature | VA Loan | FHA Loan |
|---|---|---|
| Down Payment | 0% | 3.5% |
| Mortgage Insurance | None | 1.75% upfront + 0.55-0.85% annual |
| Interest Rate | 6.50% | 6.75% |
| For Life of Loan | N/A | MIP required for life |
Verdict: VA is superior to FHA in every way for eligible veterans.
Yes. You can use VA loan benefits multiple times throughout your life. Your entitlement resets when you sell and pay off the VA loan. You can even have multiple VA loans simultaneously using remaining entitlement.
No. Average VA loan closing in Virginia: 30-35 days, comparable to conventional loans. Some experienced lenders close in 25-30 days.
Not in Virginia. With 750,000+ veterans and major military bases, VA loans are extremely common and well-understood by sellers and agents—especially in Hampton Roads.
Only if it meets VA Minimum Property Requirements at closing. For homes needing major repairs, consider a VA renovation loan (includes up to $40,000 in repairs) or have seller complete repairs before closing.
Yes, if you receive VA disability compensation at any percentage. This exemption saves thousands—$6,450 on a $300,000 loan. Purple Heart recipients are also exempt.
Most Virginia lenders prefer 620+, with best rates at 740+. The VA has no official minimum, but scores below 620 are difficult to approve and come with higher rates.
Yes, after living in it as your primary residence for at least 12 months. Common for active duty receiving orders to new duty stations—rent out first home, use VA loan at new location.
You have options: renegotiate price to appraised value, pay the difference in cash, meet in the middle, or walk away. Your earnest money is typically returned if you included an appraisal contingency.
We provide comprehensive VA loan information for 20+ Virginia cities:
Each city guide includes local VA loan rates, lenders, housing market analysis, and neighborhood recommendations.
You've served our country—now let your VA benefits serve you. Virginia Lending Hub connects veterans with experienced VA lenders who understand your unique needs.
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Last updated: November 21, 2025
Disclaimer: Virginia Lending Hub is a lead generation service connecting veterans with licensed mortgage professionals. We are not a lender and do not make credit decisions. Rates and terms subject to change. All loans subject to credit approval.