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Home Buying TipsWhat are the main benefits of a VA home loan?
For eligible Veterans, active-duty service members, qualifying National Guard and Reserve members, and certain surviving spouses, a VA-backed purchase loan can reduce the cash needed to buy a home. A private lender makes the loan, and the Department of Veterans Affairs guarantees a portion of it. The benefit does not replace the lender's credit and income review.
Whether you are relocating to Luke Air Force Base, buying your first home in Goodyear, or looking in Buckeye, Glendale, or Surprise, the best starting point is the same: confirm your eligibility and compare written lender estimates before deciding how much home to buy.
- No down payment in many cases. With full entitlement, VA does not impose a loan limit that requires a down payment. You still must qualify with your lender, and a purchase price above the appraised value may require cash to cover the difference. With remaining entitlement, a down payment may be required.
- No monthly mortgage insurance. VA loans do not require the monthly mortgage-insurance charge associated with many low-down-payment conventional loans. A VA funding fee may still apply.
- Competitive financing. Rates and fees vary by lender and borrower. A VA loan is not automatically the lowest-cost option, so compare the interest rate, annual percentage rate, closing costs, and total payment.
- No prepayment penalty. You can pay a VA-backed home loan off early without a prepayment penalty.
- Reusable benefit. Prior use does not automatically prevent another VA purchase. A lender can review restoration or remaining entitlement and the primary-residence requirements.
Start with the VA's purchase-loan guidance and ask your lender how it applies to your situation.
No down payment does not mean no cash to close
Plan for eligible closing costs, prepaid taxes and insurance, inspections, and other expenses. Earnest money may also be due before closing. Depending on your contract and loan structure, seller credits or lender credits may offset some eligible costs, but those arrangements are not automatic.
Ask for an estimate that separates principal and interest, property taxes, homeowners insurance, and any HOA dues. For a home with solar, review whether the equipment is owned, financed, or leased and have the lender review the documents early.
For a related comparison, read Should Phoenix Buyers Ask for Closing Cost Credits? Your lender should run the numbers for your particular loan.
What is the VA funding fee?
The funding fee is a one-time charge that helps support the VA loan program. On a purchase loan, it can generally be financed into the loan. Some borrowers are exempt, including qualifying recipients of VA disability compensation and certain surviving spouses. Have your lender verify your exemption status rather than assuming that every Veteran pays the fee.
The VA's published purchase-loan schedule for Veterans, active-duty service members, and National Guard and Reserve members lists the following rates for borrowers who are not exempt:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
These are purchase-loan rates, not a universal schedule for every VA loan type. Confirm current rates and exemptions using the VA funding-fee and closing-cost guidance.
Can a seller pay a VA buyer's closing costs?
Yes, seller-paid costs can be negotiated into the purchase contract, subject to VA rules and lender approval. An important distinction: VA's 4% seller-concession limit is based on the property's reasonable value, not simply the loan amount, and it does not apply to every seller-paid closing cost.
Ordinary buyer closing costs and normal discount points are treated differently from concessions such as paying the buyer's funding fee or certain prepaid expenses. Ask your lender to classify each requested payment and confirm the permitted amount before the offer is finalized. A seller is not required to agree to your request.
We can coordinate the offer terms with your lender so the requested credit fits your actual eligible expenses and the seller's overall net proceeds.
How to prepare a strong VA offer in Phoenix Metro
There is no single market condition that applies to every home in Phoenix Metro. A Goodyear resale, a Buckeye new build, and a Glendale condo may offer very different negotiating opportunities. Rather than relying on old metro-wide statistics, we review competing listings, recent comparable sales, days on market, and the seller's timeline for the property you want.
- Request your Certificate of Eligibility early. Your COE confirms eligibility and helps your lender assess entitlement. Some requests can be completed quickly; others require additional service records or VA review. Do not assume a fixed turnaround time.
- Get a meaningful lender review. Ask whether an underwritten pre-approval is available and what conditions remain. Pre-approval is not a guarantee of final approval; the property, appraisal, title, insurance, and any remaining borrower conditions still matter.
- Build the offer around verified numbers. Confirm the proposed payment, cash to close, funding fee or exemption, and any seller credit before submitting.
- Set realistic deadlines. Coordinate appraisal, inspections, underwriting, and closing with your lender and the seller. PCS orders make early planning especially helpful, but they do not remove loan requirements.
- Keep appropriate protections. A competitive offer should not require you to ignore property condition or agree to an unaffordable appraisal gap.
You can request a COE through VA.gov, or ask whether your lender can obtain it for you.
Condos, townhomes, and property condition: what to check
A condominium generally must be in a VA-approved project. But a home marketed as a townhome is not automatically a condominium: its legal ownership structure matters. Have your lender and title company confirm whether project approval applies before you commit to a property.
The VA appraisal considers value and minimum property requirements for safety, sanitation, and structural soundness. It is not a substitute for an independent home inspection. Condition concerns can require repairs or additional review; no agent can promise that a home will pass appraisal. The VA's home-buying process guide explains the difference.
Ask about roofing, cooling equipment, pool condition, deferred maintenance, and solar agreements early. An independent inspector can evaluate issues that an appraisal is not designed to uncover.
Arizona property-tax relief is a separate benefit
Some disabled Veterans may qualify for Arizona property-tax exemptions, but qualification is not automatic and is separate from VA loan eligibility or a funding-fee exemption. Rules, application requirements, and deadlines should be confirmed with the assessor for the county where the home is located.
For a Maricopa County home, start with the Maricopa County Assessor's Veteran exemption information. Buyers in another county should use that county's current guidance. Do not build a future tax exemption into your budget until your eligibility has been confirmed.
Frequently asked questions
What credit score do I need for a VA home loan?
VA does not set a universal minimum credit score for its purchase-loan benefit, but lenders set their own credit standards. Income, debts, residual income, and the rest of your financial profile also matter. Ask individual lenders about their requirements rather than relying on a single advertised score.
Can I use my VA benefit again after buying in another state?
Potentially, yes. Your lender can review entitlement restoration or remaining entitlement, any existing VA loan, and occupancy requirements. A COE is an important starting point, but it does not by itself guarantee loan approval or a no-down-payment purchase.
Will a VA offer be less attractive to a seller?
Acceptance depends on the full offer and the seller's priorities, not just the financing label. A clear lender review, realistic deadlines, reasonable credit requests, and good communication can strengthen your offer. No financing type guarantees acceptance.
Where can I read more about common VA questions?
Our companion article, What Military Families Are Googling About VA Loans Right Now, covers additional questions to discuss with your lender.
Plan your next move with Felix Home Team
If you are relocating to the West Valley or buying near Luke AFB, we can help you narrow your search, review local property considerations, and coordinate the offer with your VA-experienced lender. We serve clients in English and Spanish.
Schedule a free consultation to discuss your timeline and home search.
Equal Housing Opportunity. This article provides general information, not legal, tax, or financial advice. Confirm current VA rules, eligibility, fees, loan terms, and property requirements with your lender and VA. Consult the applicable county assessor or a qualified tax professional about property-tax benefits.
