Overview
- VA-backed mortgages offer no required down payment and no PMI for eligible buyers, and most borrowers pay a one-time funding fee that helps sustain the program.
- Borrowers must still meet credit, income, and property standards, and benefits can be reused through entitlement restoration or partial entitlement in some cases.
- Sellers are not obligated to cover all closing costs for VA buyers, as only limited non-allowable fees are restricted and most typical expenses can be paid by the buyer.
- VA appraisals focus on Minimum Property Requirements to ensure homes are safe, sound, and sanitary rather than flagging cosmetic issues.
- Usage is edging higher, reaching 7.3% of mortgaged purchases in August 2025, with the highest concentrations in Virginia Beach, Jacksonville, Washington, San Diego, and Las Vegas.