Your Earned Military Benefit
Your VA Home Loan Benefit — A Guide for Fort Hood Service Members
The VA home loan benefit is one of the most valuable financial tools available to active-duty service members, veterans, and surviving spouses. Unlike conventional mortgages, a VA-backed purchase loan can allow you to buy a home with no down payment, no private mortgage insurance, and limited closing costs.
If you’re stationed at Fort Hood or receiving PCS orders to the Killeen area, understanding your VA loan benefit is one of the first steps in your homebuying process.
No down payment is required—as long as the sales price does not exceed the home's appraised value.
There is no private mortgage insurance (PMI) requirement. VA-backed loans completely eliminate PMI, which is typically required on conventional loans with less than 20% down.
You benefit from limited closing costs because the VA strictly limits the fees lenders can charge to VA loan borrowers.
Enjoy competitive interest rates. VA-backed loans often offer lower interest rates than conventional mortgages.
This is a reusable lifetime benefit. You can use your VA loan entitlement more than once, as long as you have remaining entitlement.
To qualify for a VA-backed home loan, you generally must meet minimum military service requirements AND meet your chosen lender’s unique credit and income standards.
Borrower Type | Minimum Service Requirement |
Active Duty | 90 continuous days of active service |
Wartime Veteran | 90 days active service during a war period |
Peacetime Veteran | 181 days of continuous active service |
National Guard / Reserves | 6 years of service, OR 90+ days active with at least 30 consecutive days under Title 32 |
Surviving Spouse | Spouse of a veteran who died in service or from a service-connected disability (additional conditions apply) |
Milestone 1
Before a lender can officially process your VA loan, you’ll need a Certificate of Eligibility (COE). The COE confirms directly to lenders that you meet the baseline service requirements for a VA-backed loan. Most lenders can seamlessly request a COE on your behalf through the VA’s automated system.
Milestone 2
VA loan entitlement is the specific amount the VA guarantees to repay your lender if you happen to default on the loan. For veterans with full entitlement, there is no longer a cap on the VA guarantee. This means eligible borrowers with full entitlement can buy a home above the conforming loan limit with no down payment required.
Note on Remaining Entitlement: If you have previously used a VA loan and still own that property, you may operate under a reduced (remaining) entitlement model. A lender or your personal COE can instantly confirm exactly how much entitlement is available for your next move.
Most VA loan borrowers pay a one-time VA funding fee. This fee goes directly to the VA and helps keep the loan program running for future generations of borrowers. The fee ranges from 0.5% to 3.3% of the total loan amount, depending on your unique scenario:
Whether it is your first use or a subsequent use of your earned benefit.
Your total down payment amount, if you choose to make one.
Whether you are a regular active-duty member, a Reservist, or a National Guard member.
Convenience Note: The funding fee can be fully rolled into the loan amount rather than paid out of pocket at closing.
You may be completely exempt from paying the VA funding fee if you fall into one of the following categories:
VA loans strictly require that the borrower intend to personally occupy the home as their primary residence. The standard occupancy requirement dictates that you move into the property within 60 days of closing.
Active-duty service members who cannot occupy the home immediately due to duty requirements have flexibility under VA guidelines: your spouse or dependent can satisfy the occupancy requirement on your behalf.
