Using a VA Loan to Buy in Houston
AspenWay Realty is a veteran-owned brokerage, and VA loans are one of the most valuable benefits available to eligible service members, veterans, and some surviving spouses buying a home in Houston. Here is what to know before you start.
Zero Down Payment
A VA loan allows eligible borrowers to finance up to 100 percent of the purchase price on most loan amounts, meaning no down payment is required in most cases. This can make homeownership accessible sooner than a conventional loan requiring a down payment.
No Private Mortgage Insurance
Unlike conventional loans with less than 20 percent down, VA loans do not require private mortgage insurance (PMI). This can meaningfully lower your monthly payment compared to other low-down-payment loan options.
Eligibility
Eligibility generally extends to veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses, based on service length and discharge status. A Certificate of Eligibility (COE) from the VA confirms your eligibility and entitlement amount; your lender can often help you request one directly.
The VA Funding Fee
Most VA loans include a one-time funding fee, which can be financed into the loan rather than paid up front. The fee amount varies based on factors such as down payment amount and whether it is a first or subsequent use of VA loan benefits. Veterans receiving VA disability compensation are typically exempt from the funding fee.
VA Appraisal and Minimum Property Requirements
VA loans require a VA appraisal, which confirms the home's value and checks it against the VA's Minimum Property Requirements (MPRs), covering safety, soundness, and sanitation. Homes with significant deferred maintenance may need repairs before closing to meet these standards.
Working With an Agent Who Understands VA Transactions
VA purchase contracts have specific contingencies and timelines. Working with an agent familiar with VA financing helps you write a competitive offer, navigate the appraisal and MPR process smoothly, and understand which closing costs the VA allows you to ask the seller to cover.