November 11 is Veteran’s Day so what better time than now to discuss that loan type that is made specifically to benefit those who have served our country?
You can learn the basics about the VA loan program by visiting this page HERE but I know there are always lots of questions that come with this loan program.
So let’s get started!
FAQ’s
Money: Down Payment, Costs & Fees
Q: Down payment required?
Often $0 down. No monthly PMI.
Q: What’s the VA Funding Fee?
A one-time fee (may be financed into the loan) that varies by first vs. subsequent use and down payment. Current examples for purchases: 2.15% (first-use <5% down) and 3.3% (subsequent-use <5% down); 1.5% at ≥5% down, 1.25% at ≥10%. Certain Veterans (e.g., with qualifying disability comp) are exempt.
Q: Who can cover closing costs?
Buyer, seller, and/or lender credits (within VA rules). Negotiated in your contract.
Property, Appraisal & Occupancy (Oklahoma specifics)
Q: Is a termite (WDI) inspection required?
Yes—statewide in Oklahoma for VA loans. The VA’s local requirements list Oklahoma among states requiring WDI information for the entire state.
Q: Primary residence only?
Yes—must intend to occupy (typically within ~60 days). Condos must be VA-approved and manufactured homes are OK if they meet VA/lender rules.
Q: What’s different about VA appraisals?
They check value and VA Minimum Property Requirements (safety/soundness/sanitation). “Tidewater” may be invoked if value looks short so you can submit comps.
Loan Amounts & Types (2025 view)
Q: Are there VA “loan limits”?
With full entitlement, VA doesn’t cap the loan size; with partial entitlement, conforming limits matter. For 2025, the baseline conforming limit is $806,500 (1-unit) across Oklahoma counties unless designated high-cost (none in OK).
Q: VA “jumbo” OK?
Yes—no PMI, but you must still qualify on income/credit/residual.
Credit, Income & Qualification
Q: Credit score needed?
I can help you with your VA loan with a low credit score of 580+, but a higher score will earn a better interest rate and pricing.
Q: What’s “residual income”?
VA’s core test: money left after debts. It uses regional tables and family size—meeting it is key to blazing through the underwriting process.
Q: Can I use BAH/disability pay?
Often yes (documentation rules apply).
Using & Reusing the Benefit
Q: Easy refinance options?
Yes—VA IRRRL (“streamline”) for existing VA loans that is only adjusting the rate and term of the loan.
VA cash-out is also available.
Q: Are VA loans assumable?
Usually yes (buyer must qualify)—a selling advantage if you have a low rate.
Repairs & Renovations
Q: What if the home needs repairs for MPRs?
Repairs can be done before closing, negotiated with the seller, or handled via limited escrow holdback (when allowed).
Q: Can I roll in renovations?
Limited VA renovation options exist—availability varies by lender.
Q: If I have already obtained one VA loan, Can I get another one?
Yes, your eligibility is reusable depending on the circumstance. If you have paid-off your prior VA Loan, and disposed the property, you can have your eligibility restored again. Also, on a 1-time basis, you may have your eligibility restored if your prior VA Loan has been paid-off, but you still own the property. Either way, the Veteran must send the Veterans Administration a completed VA Form 16-1880 to the VA Eligibility Center. To prevent delays in processing, it’s advisable to include evidence that the prior loan has been fully paid, and if applicable, the property was disposed. A paid-in-full statement from the former lender or a copy of the HUD-1 settlement statement must be submitted.
Q: Can I get help with the closing costs?
Sellers are required to pay certain closing costs in a VA loan, AND VA loans can be combined with additional down payment assistance programs to help with the remaining costs. Ask me how!
