What Is a VA Loan?
Plain-English answers from Andy & Rebekah at Entity Mortgage and Realty in Santa Clarita.
Get Pre-ApprovedCall or text 661-877-4162A VA loan is a home loan made by a private lender and guaranteed by the U.S. Department of Veterans Affairs. Because the VA backs part of the loan, eligible veterans, service members and some surviving spouses can buy a home on better terms than many other loans offer.
Key benefits
- No down payment in many cases, as long as the price is not above the appraised value.
- No private mortgage insurance (PMI).
- No VA loan limit for borrowers with full entitlement. Your lender still sets how much you can borrow based on your income and credit.
- Limits on certain closing costs the buyer can be charged.
Who qualifies?
Eligibility depends on your service history. Veterans, active duty members, National Guard and Reserve members who meet service requirements, and some surviving spouses may qualify. You prove eligibility with a Certificate of Eligibility (COE).
The VA funding fee
Most VA buyers pay a one-time funding fee, which can be rolled into the loan. For a first-time use purchase with less than 5% down, it is 2.15% of the loan amount; for later uses it is 3.3%. A larger down payment lowers it. Veterans receiving VA disability compensation, and some others, are exempt.
Can I use a VA loan more than once?
Yes. VA home loan benefits can be reused, and in some cases you can have more than one VA loan at a time.
Ready to use your benefit? Meet your VA loan specialist.
Talk to Andy About Your Loan
Have questions or want to see what you qualify for? Call or text Andy at 661-877-4162.
What is a VA loan: Frequently Asked Questions
How much is the VA funding fee in 2026?
For a first-use purchase with less than 5% down it is 2.15% of the loan amount; 5% or more down is 1.5%; 10% or more is 1.25%. After first use with less than 5% down it is 3.3%. An IRRRL is 0.5%. Source: va.gov.
Who does not pay the VA funding fee?
Veterans receiving or eligible for VA disability compensation, surviving spouses receiving DIC, service members with a pre-discharge rating before closing, and active-duty Purple Heart recipients, per va.gov.
Can the funding fee be financed?
Yes. You can roll the funding fee into the loan or pay it at closing.
Can the seller pay my closing costs on a VA loan?
Yes. VA does not limit seller credits for closing costs, but seller concessions are capped at 4% of the home's reasonable value.
More Home Loan Guides for Santa Clarita Buyers
VA Loan Specialist · FHA loans · Conventional loans · Non-QM loans · Commercial loans
Andy Martinez Jr., Mortgage Loan Originator | NMLS #2171006 · Entity Mortgage and Realty, Company NMLS #2371431 · CA DRE #01978202 · 26254 Prima Way, Santa Clarita, CA 91350 · Equal Housing Opportunity. General information only, not a commitment to lend. Approval, rates and terms depend on credit, income, property and program guidelines and can change.