Empowering Veterans and Military Families with 100% Home Financing

The VA Home Loan, guaranteed by the Department of Veterans Affairs, is one of the most powerful and valuable benefits available to service members, veterans, and eligible surviving spouses.

VA Loans & Refinancing for Veterans

It is designed to facilitate homeownership by overcoming the two largest hurdles for many buyers: the down payment and the monthly cost of mortgage insurance.

At Drennen Home Loans, we specialize in maximizing this benefit. Our deep understanding of VA guidelines ensures a smooth, efficient, and cost-effective process, whether you are purchasing your first home or refinancing your current one. We are dedicated to providing the necessary information and expert support to help you achieve homeownership with the lifetime financial advantages the VA Loan provides.

The Core Advantages of the VA Loan Program

The VA Loan is not merely another mortgage product; it is a benefit structured to deliver superior financial terms compared to conventional and FHA options.

  • Zero Down Payment Requirement The most significant feature of the VA Loan is the ability to secure 100% financing. This allows eligible borrowers to purchase a primary residence without any requirement for a down payment. This benefit preserves personal savings, which can instead be used for closing costs, moving expenses, or essential home improvements. This capability is especially beneficial in markets where median home prices necessitate substantial down payments on conventional loans.

  • Exemption from Private Mortgage Insurance (PMI)
    Unlike conventional mortgages requiring a down payment of less than 20% or FHA loans, the VA Loan does not require Private Mortgage Insurance (PMI). PMI is a costly monthly expense that protects the lender, not the homeowner. Eliminating this mandatory recurring cost results in a lower monthly mortgage payment and can save the borrower thousands of dollars over the loan’s lifetime.

  • Competitive Interest Rates Due to the federal guarantee provided by the VA, lenders face a reduced risk exposure. This allows us to offer highly competitive interest rates, often lower than those available on comparable conventional loan products. These favorable rates, combined with the absence of PMI, ensure that the total cost of borrowing is significantly reduced.

  • Flexible Underwriting Guidelines The VA Loan program offers greater flexibility regarding credit score requirements and debt-to-income (DTI) ratios compared to most conventional financing options. This flexibility is designed to make homeownership accessible to a wider range of service members and veterans whose financial histories may not fit the strict profiles required by other types of loans.
VA Loans & Refinancing for Veterans

Navigating VA Eligibility and the Certificate of Eligibility (COE)

The foundation of accessing the VA Loan benefit is establishing eligibility, confirmed through the Certificate of Eligibility (COE). This document verifies your service history and entitlement. Our loan specialists can assist in quickly obtaining your COE, often through an automated electronic process.

General Eligibility Criteria:

Eligibility is based on the length and character of service and typically includes:

  • Wartime Veterans: 90 continuous days of active service.

  • Peacetime Veterans: 181 continuous days of active service.

  • Active-Duty Personnel: 90 continuous days of service.

  • National Guard/Reserve Members: Six years of honorable service, or 90 days of active service.

  • Surviving Spouses: Certain unremarried spouses of veterans who died in service or from a service-connected disability.

It is important to note that entitlement is not a one-time use benefit. Veterans who have paid off a previous VA Loan, or who have remaining entitlement after a prior use, may be eligible for a second VA Loan to purchase another primary residence.

Understanding the VA Funding Fee

The VA Funding Fee is a mandatory, one-time payment required by the VA to help cover the costs of the loan program for future generations of veterans. This fee is typically calculated as a percentage of the total loan amount.

Certified Divorce Lending Professional

Key Characteristics of the Funding Fee:

  • Financed into the Loan: In most cases, the Funding Fee is financed directly into the loan amount, meaning borrowers do not have to pay this fee out-of-pocket at closing.

  • Variable Rate: The fee percentage varies based on whether it is the borrower’s first time using the VA Loan benefit, whether they are making a down payment, and the specific type of loan product (e.g., purchase versus cash-out refinance).

  • Waiver for Disability: A critical provision allows for the waiver of the Funding Fee for veterans who are receiving VA compensation for a service-connected disability, as well as for certain surviving spouses. Our team verifies disability status early in the process to ensure all eligible veterans receive this valuable exemption.

Specialized VA Loan Programs

The VA offers several distinct programs beyond the standard purchase loan, allowing veterans to manage and maximize their home equity.

  • VA Purchase Loans
    This is the standard, most common use of the benefit, providing 100% financing for the acquisition of a primary residence. Our expertise ensures compliance with VA property standards and successful negotiation of the appraisal process, which can be critical in a competitive real estate environment.

  • VA Interest Rate Reduction Refinance Loan (IRRRL) – The Streamline Refinance
    The IRRRL is designed for veterans who already have a VA mortgage and wish to refinance solely to obtain a lower interest rate, thus reducing their monthly payment. The “streamline” nature of this product means it often requires minimal documentation, no new appraisal, and no credit underwriting, resulting in a fast and simple closing process. The funding fee for this specific product is set at 0.5%.

  • VA Cash-Out Refinance
    This program allows veterans to replace their existing mortgage (whether VA, FHA, or Conventional) with a new VA loan to access the accumulated equity in their home. The cash proceeds can be used for any purpose, such as debt consolidation, home improvements, or educational expenses. The VA Cash-Out Refinance can often allow up to 100% Loan-to-Value, which is a significant advantage over many conventional cash-out options.

Your Trusted Partner in VA Homeownership

We understand the unique circumstances military families face, including relocations and the challenges of buying in a new area. Our commitment is to simplify this process, offering personalized service that respects your time and your service. By partnering with us, you gain access to a team that ensures the full and proper utilization of your VA benefit, leading you to a successful and financially sound home purchase.

Apply for a Mortgage
Contact a Loan Officer