You served your country. You earned benefits. One of them is the ability to buy a home with zero down payment.
You probably don’t know that. Or you forgot. Or you think it expired.
It didn’t.
In 2016, approximately one-eighth of all mortgages were guaranteed by the VA. That sounds substantial until you look at the other side: a 2010 survey found that many homebuying veterans weren’t aware of the VA loan benefit or didn’t know much about it. About a quarter of active-duty military personnel didn’t even know they were eligible.
Las Vegas has a substantial veteran population. Many military retirees choose Nevada for the cost of living, no state income tax, and quality of life. If you served and you’re looking to buy in Las Vegas, your VA benefit might be the most powerful financing tool available.
What Makes VA Loans Special
The Department of Veterans Affairs doesn’t make loans. The VA guarantees mortgages made by approved lenders. This guarantee protects the lender if you default. Because of this protection, lenders can offer terms they wouldn’t otherwise provide.
Zero Down Payment
The primary feature of VA loans is zero down payment for qualified borrowers buying a primary residence. No other major loan program offers this for as many people.
You don’t need 3%, 5%, or 20% down. You need $0 down.
On a $300,000 Las Vegas home, that’s the difference between needing $30,000 saved (for 10% down) and needing just enough for closing costs. It dramatically reduces the barrier to homeownership.
No Private Mortgage Insurance
Conventional loans with less than 20% down require PMI. FHA loans require mortgage insurance for the life of the loan. VA loans have neither.
You pay a VA funding fee (more on this below), but there’s no ongoing monthly mortgage insurance premium eating into your cash flow.
Competitive Interest Rates
VA loans typically offer interest rates equal to or lower than conventional loans. The VA guarantee reduces lender risk, which translates to better rates for you.
Flexible Credit Requirements
VA loans don’t set minimum credit scores. Individual lenders do, typically around 620. But the VA itself focuses on your complete financial picture, not just your credit score. Veterans with imperfect credit often qualify when conventional loans would reject them.
Limited Closing Costs
The VA limits what lenders can charge veterans in closing costs. This protects you from excessive fees. You’ll still pay closing costs, but they’re regulated.
Who Qualifies for VA Loans
Eligibility is broader than many veterans realize.
Veterans
If you were honorably discharged from active duty, you likely qualify. The exact service requirements depend on when you served:
- 90 days of active service during wartime
- 181 days during peacetime
- 6 years in National Guard or Reserves
Active-Duty Service Members
You don’t need to wait until discharge. Active-duty personnel who’ve served at least 90 days qualify for VA loans.
National Guard and Reserve Members
If you’ve completed at least 6 years of service in the National Guard or Selected Reserve units, you qualify. You don’t need to have been activated or deployed.
Surviving Spouses
Certain surviving spouses of veterans who died in service or from service-connected disabilities qualify for VA loan benefits.
Most veterans qualify under one of these categories. If you served, check your eligibility. The benefit doesn’t expire when you separate from service. It’s yours for life.
The VA Funding Fee
VA loans aren’t completely free of upfront costs. You’ll pay a VA funding fee, which helps keep the program running without taxpayer subsidy.
The funding fee varies based on:
- Type of service (active duty, Guard/Reserve)
- Down payment amount (if any)
- Whether this is your first VA loan or subsequent use
- Whether you’re buying or refinancing
Typical Funding Fees for Purchase
First-time use with zero down: 2.15% Subsequent use with zero down: 3.3% First-time use with 5% down: 1.5% First-time use with 10% down: 1.25%
On a $300,000 loan with zero down on first use, the funding fee is $6,450. On subsequent use, it’s $9,900.
Important Exemptions
Veterans receiving VA disability compensation are exempt from the funding fee entirely. If you have a service-connected disability rating, you won’t pay the fee.
Surviving spouses also receive exemptions.
Financing the Fee
You can roll the funding fee into your loan amount. Most veterans do. This means you’re not paying it out of pocket at closing. On a $300,000 purchase, you’d borrow $306,450 (loan amount plus funding fee).
Common Misconceptions About VA Loans
“VA Loans Are Only for First-Time Buyers”
False. You can use VA loans multiple times throughout your life. You can even have two VA loans at the same time if you’re relocating and keeping your previous home as a rental (though this gets complicated with entitlement).
“VA Loans Are Only for Retirees”
False. Active-duty personnel qualify after 90 days of service. You don’t need to retire or separate to use the benefit.
“VA Loans Take Longer to Close”
Not really. VA loans close in the same timeframe as conventional loans, typically 30-45 days. Some sellers think VA loans are slower, but that perception is outdated.
“Sellers Won’t Accept VA Loans”
Some sellers worry about VA appraisal requirements. The VA requires certain property condition standards. But in Las Vegas’s seller-friendly market, many sellers accept VA loans readily. Work with an agent who can position your offer properly.
“You Can Only Buy Certain Types of Homes”
VA loans work for single-family homes, townhouses, condos (if VA-approved), and multi-family properties up to 4 units (if you occupy one). The property must meet minimum property requirements, but most homes qualify.
“The Benefit Expires”
Never. Your VA loan eligibility lasts your lifetime. Twenty years after discharge, thirty years, forty years. Once earned, always available.
VA Loans in the Las Vegas Market
Las Vegas offers specific advantages for VA buyers.
Strong Veteran Community
Nellis Air Force Base, the VA hospital, and various military installations mean Las Vegas has substantial veteran population. Local lenders understand VA loans. Local sellers see VA buyers regularly. You’re not unusual.
Price Points Match Benefit
Many Las Vegas homes fall within VA loan limits. You’ll find quality homes in good neighborhoods accessible with VA financing.
No State Income Tax
Nevada has no state income tax. Your military retirement pay goes further here. More of your income is available for housing costs.
Favorable Property Taxes
Nevada property taxes are low compared to many states. Combined with no state income tax, Las Vegas offers tax advantages that make homeownership more affordable.
Diverse Housing Options
From established neighborhoods in Henderson to newer communities in North Las Vegas, to age-restricted communities in Summerlin, Las Vegas offers options for veterans at various life stages.
Using Your VA Benefit at 50+
If you’re 50 or older and thinking about buying in Las Vegas, VA loans offer specific advantages at this stage.
Preserve Retirement Savings
Zero down means you don’t deplete retirement accounts for a down payment. At 50+, you have limited time to rebuild retirement savings. Keep them intact.
Lower Monthly Payments
No PMI means lower monthly payments than conventional or FHA loans with small down payments. On fixed retirement income, every dollar matters.
Access to Cash
Money you would have used for down payment remains available for emergencies, healthcare, home improvements, or other needs. Financial flexibility increases with age.
Ability to Buy Sooner
If you’re currently renting and saving for a down payment, VA loans let you buy now. Stop paying rent. Start building equity.
VA Loan Process
Step 1: Get Your Certificate of Eligibility (COE)
The COE proves you’re eligible for VA loans. Apply online through the VA website, through your lender, or by mail. Most applicants receive their COE within minutes online.
Step 2: Get Pre-Approved
Find a VA-approved lender. Get pre-approved based on your income, credit, and debt-to-income ratio. Pre-approval shows sellers you’re serious.
Step 3: House Hunt
Work with an agent familiar with VA loans. Aaron Taylor “The Real Estate Guy” understands how to position VA buyers in the Las Vegas market.
Step 4: Make an Offer
Your agent will include your pre-approval letter and explain the benefits of VA financing to the seller. Sellers want assurance the loan will close. Your agent’s job is providing that assurance.
Step 5: VA Appraisal
The VA will order an appraisal. The appraiser evaluates the home’s value and ensures it meets minimum property requirements. The property must be safe, sound, and sanitary.
Step 6: Underwriting and Closing
Your lender processes the loan. You’ll provide documentation of income, assets, and employment. Once cleared, you’ll close on the home.
Combining VA Benefits with Other Strategies
VA Loan + Seller Credits
Negotiate seller-paid closing costs. The VA allows sellers to pay up to 4% of the home price in concessions. This can cover most or all of your closing costs.
VA Loan + Using Your Certificate
If you’re using VA disability compensation, that income counts toward qualifying. It’s tax-free, so lenders give it favorable treatment.
VA Loan + Co-Borrowing
Your spouse can be a co-borrower even if they’re not a veteran. Their income helps you qualify for a larger loan amount.
VA Loan + Energy Efficient Mortgage
The VA offers an energy efficient mortgage program that lets you finance energy improvements up to $6,000 beyond the home’s value. Useful in Las Vegas for upgraded AC systems or solar.
Protecting Your VA Benefit
Avoid Foreclosure
Foreclosure on a VA loan doesn’t eliminate your eligibility, but it complicates future use. The VA might require you to repay any loss they incurred before you can use the benefit again.
Understand Occupancy Requirements
VA loans require you to occupy the home as your primary residence within 60 days of closing and live there for at least 12 months. If you can’t meet occupancy requirements, VA loans aren’t appropriate.
Restore Your Entitlement
When you sell a VA-financed home, you can restore your full entitlement for future use. The process is simple. Don’t assume you’ve “used up” your benefit after one home.
Know Your Remaining Entitlement
If you’ve used VA loans before, you might have partial entitlement remaining. You can use partial entitlement to buy another home, though the zero-down benefit might be reduced depending on the home price.
When VA Loans Aren’t the Best Option
Despite their benefits, VA loans aren’t always optimal.
Investment Properties
VA loans require owner occupancy. You can’t use them for investment properties or vacation homes. If you’re buying a rental property, you’ll need conventional financing.
Second Homes
Same issue. VA loans are for primary residences only.
Highly Competitive Markets
If you’re competing against cash buyers or conventional buyers in a hot market, some sellers might prefer non-VA financing. Your agent’s skill in positioning your offer matters here.
Homes That Won’t Pass VA Appraisal
If you’re buying a fixer-upper that doesn’t meet minimum property requirements, VA loans won’t work. You’d need conventional financing or FHA 203(k) loans that allow for repairs.
Taking Action
If you’re a veteran or active-duty service member over 50 looking to buy in Las Vegas:
Check your Certificate of Eligibility. Log into the VA website and verify your status.
Calculate your budget. Zero down is available, but that doesn’t mean you should borrow the maximum. Use the 36% debt-to-income rule to determine comfortable payment.
Find a VA-experienced lender. Not all lenders handle VA loans well. Get recommendations from other veterans or work with lenders Aaron Taylor “The Real Estate Guy” recommends.
Connect with a veteran-friendly agent. Someone who understands VA benefits, can position your offer properly, and knows how to navigate VA appraisal requirements.
You earned this benefit. Use it.
Frequently Asked Questions
Do VA loans require a down payment?
No. VA loans allow zero down payment for qualified borrowers buying primary residences. This is the primary benefit of VA loans. You can make a down payment if you want to reduce your funding fee or lower your loan amount, but it’s not required.
How many times can I use my VA loan benefit?
Multiple times throughout your life. Each time you pay off a VA loan and sell the property, you can restore your full entitlement for another purchase. You can even have two VA loans simultaneously in certain circumstances, like when relocating for work.
Do I still qualify for a VA loan 30 years after leaving the military?
Yes. VA loan eligibility never expires. If you were honorably discharged 5, 10, 20, or 40 years ago, you still qualify. The benefit is yours for life. Check your Certificate of Eligibility to confirm your status and proceed with applying.
Can I use a VA loan to buy in Las Vegas if I served in another state?
Yes. VA loans work anywhere in the United States. Your service location and your home purchase location don’t need to match. If you served in California but want to buy in Nevada, your VA benefit works normally. The benefit follows you nationwide.
What’s the VA funding fee and can I avoid it?
The funding fee is 2.15% to 3.3% of the loan amount depending on circumstances, typically rolled into the loan. Veterans with service-connected disabilities and surviving spouses are exempt entirely. If you receive VA disability compensation, you won’t pay the funding fee at all.
Will sellers reject my offer because it’s a VA loan?
Not automatically. Some sellers worry about VA appraisal requirements, but most Las Vegas sellers accept VA loans regularly. Work with an experienced agent who can position your offer properly and explain the benefits of working with VA buyers. Cash backup offers can strengthen your position.
Can I buy a condo with a VA loan?
Yes, if the condo complex is VA-approved. Not all condos are approved. Your lender can check whether a specific complex is on the VA-approved list. Many Las Vegas condos are approved, particularly in established communities.
What credit score do I need for a VA loan?
The VA doesn’t set a minimum credit score. Most lenders require 620 or higher, though some accept lower scores with compensating factors. VA loans are more flexible than conventional loans regarding credit, focusing on your complete financial picture rather than just your score.
Can my spouse be on the loan if they’re not a veteran?
Yes. Your non-veteran spouse can be a co-borrower. Their income helps you qualify for a larger loan amount. However, if your spouse has significant debt, it might hurt your debt-to-income ratio. Calculate both ways to see which is better.
Can I use a VA loan to buy a multi-family property?
Yes, up to 4 units, as long as you occupy one unit as your primary residence. This is a powerful benefit. You can buy a duplex, triplex, or fourplex with zero down while having rental income from the other units help cover your mortgage payment.
Key Takeaways
- VA loans offer zero down payment for eligible veterans, active-duty service members, and certain National Guard and Reserve members
- One-eighth of mortgages use VA guarantees, but many eligible veterans don’t know about or use their benefits
- VA loan eligibility never expires regardless of how long ago you separated from service
- No PMI or ongoing mortgage insurance means lower monthly payments than conventional or FHA loans with small down payments
- VA funding fee ranges from 2.15% to 3.3% but is waived entirely for veterans with service-connected disabilities
- Las Vegas offers strong veteran community, no state income tax, low property taxes, and housing options matching VA loan limits
- At age 50+, zero down preserves retirement savings that have limited time to rebuild before retirement
- VA loans work for purchase up to fourplexes (live in one unit, rent others) and can be used multiple times throughout life
- Get Certificate of Eligibility online in minutes, then work with VA-experienced Las Vegas lenders
- Connect with agents like Aaron Taylor who understand how to position VA buyers in competitive markets
