VA-backed purchase loans are made and underwritten by lenders. The Department of Veterans Affairs guarantees part of the loan; it does not replace the lender’s review of your credit, income, occupancy plans and the property.

Possible no-down-payment financing

Eligible borrowers may qualify for no down payment, subject to appraised value, entitlement and lender requirements. A price above the appraised value or other circumstances can require cash. A lender must confirm the details for your purchase.

No monthly private mortgage insurance

VA-backed purchase loans do not require monthly private mortgage insurance (PMI). Taxes, homeowners insurance, interest and other applicable ownership costs still affect the payment.

What a Certificate of Eligibility means

A Certificate of Eligibility (COE) indicates eligibility for the VA home-loan benefit. It is not pre-approval or final loan approval. Your lender still evaluates the financing and property requirements.

Closing costs, prepaid taxes and insurance, deposits and other expenses can still exist. Ask for a written estimate and compare the full payment as well as upfront cash.

A VA funding fee may apply. Some borrowers qualify for an exemption; a waiver is not automatic for every veteran. VA and your lender must confirm your funding-fee status. Ask whether paying or financing an applicable fee affects your loan amount and total cost.

Builder or seller credits may help with eligible costs, subject to loan rules and verified written terms. Credits change and are never guaranteed.

Understand what makes up cash-to-close.

• Define your goals, monthly comfort range, move timing and intended occupancy.
• Explore your COE through VA or with a lender; gather the service documentation requested.
• Connect with a VA-experienced lender to confirm eligibility, credit, income, entitlement and funding-fee status.
• Compare new construction and resale, financing options and full ownership costs.
• Ask about current builder or seller credits and get all conditions in writing.
• Review appraisal and property requirements, inspections and any construction-completion conditions with your lender and agent.
• Coordinate PCS or remote-tour timing, documents, closing arrangements and occupancy requirements before committing.

VA financing may be available for a newly built home when the borrower, loan and property meet applicable requirements. Confirm the construction and lender conditions before assuming a home qualifies.