The VA Loan Guide for Northern Virginia Buyers

With the Pentagon, Fort Belvoir, Joint Base Myer-Henderson Hall and Marine Corps Base Quantico nearby, VA loans are a big part of the Northern Virginia market. They’re one of the best loan programs available, and I want every eligible buyer to understand them.

Who’s eligible

Most veterans, active-duty service members, many National Guard and Reserve members and certain surviving spouses can qualify. Your lender can pull your Certificate of Eligibility in minutes.

The funding fee

Instead of monthly mortgage insurance, VA loans have a one-time funding fee, which can be financed.

Down payment	First use	Later use
Under 5%	2.15%	3.3%
5% to 9.9%	1.5%	1.5%
10% or more	1.25%	1.25%

Veterans receiving or eligible for VA disability compensation, Purple Heart recipients and surviving spouses receiving DIC are exempt. That exemption alone can save more than $13,000 on a typical Northern Virginia purchase.

A worked example

On a $650,000 townhouse with 0% down and first use, the funding fee is 2.15%, or $13,975. Financed, the loan becomes $663,975. At an example rate of 6.5%, principal and interest is about $4,197. If the buyer puts 5% down, the fee drops to 1.5% of $617,500, or $9,262.50.

Remember that taxes, insurance and any HOA fee come on top of that payment. Because there’s no down payment, VA buyers also start with little equity, so it’s wise to plan on staying at least a few years or to be comfortable renting the home out if you move.

Entitlement and loan limits

If you have full entitlement, VA doesn’t cap the loan amount, which matters in a high-priced area like ours. If part of your entitlement is tied up in another VA loan, county limits affect how much you can borrow without a down payment. Your lender can calculate it.

Condos, new construction and multi-unit homes

• Condos: the project must be VA approved. Many Northern Virginia buildings are, but not all, so I check before we tour.
• New construction: VA loans work with many builders, and builder incentives can often be used toward closing costs.
• Two to four units: you can buy a small multi-unit property with a VA loan if you live in one unit. Rental income from the other units may help you qualify.
• Refinancing later: if rates fall, a VA streamline refinance, called an IRRRL, has a 0.5% funding fee and simpler paperwork.

Making a VA offer competitive

• Be fully preapproved with a lender experienced in VA loans.
• Explain the appraisal. VA appraisals check value and minimum property requirements, such as safety and sound structure. Most move-in-ready homes pass easily.
• Use seller concessions wisely. VA allows up to 4% in concessions, plus normal closing costs.
• Show strength elsewhere, such as a flexible settlement date or a solid earnest money deposit.

The VA appraisal process also includes a step called the Tidewater initiative, which alerts the agents if the value may come in low and gives them a chance to share comparable sales.

Common mistakes

• Assuming a seller won’t accept VA. Many will, especially with a clear explanation from your agent.
• Forgetting occupancy. VA loans are for homes you’ll live in, usually within about 60 days of closing.
• Not checking for an assumable VA loan. Read Assumable Mortgages Explained.

Moving here on orders? See Buying a Home in Northern Virginia on PCS Orders and Selling Before a PCS Move.

Frequently asked questions

Can I use a VA loan more than once?

Yes. Entitlement can be restored after you sell and pay off the loan, and sometimes you can have two VA loans at once.

Can I buy a condo with a VA loan?

Yes, if the condo project is VA approved. I check this before we make an offer.

Is the funding fee refundable?

If you’re later awarded disability compensation retroactive to before closing, you may be eligible for a refund. Ask the VA.