A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs that lets eligible service members, veterans, and surviving spouses buy a home with no down payment and no private mortgage insurance. For the right buyer, it is one of the most powerful home financing tools available, and it works anywhere in South Jersey, including Burlington County.
Despite how strong the benefit is, many eligible buyers never use it. They assume they need a perfect credit score, a big down payment, or they simply do not realize they qualify. That leaves thousands of dollars of advantage on the table every year.
I have helped buyers across Moorestown, Medford, Mount Laurel, Marlton, and the rest of Burlington County understand their financing options. This guide walks through exactly how a VA loan works, who qualifies, what it costs, and how the process plays out for a home purchase in South Jersey. No pressure, just the facts so you can make a confident decision.
What Is a VA Loan?
A VA loan is a mortgage issued by a private lender, such as a bank or credit union, but guaranteed by the U.S. Department of Veterans Affairs. That government guarantee reduces the risk for the lender, which is what allows lenders to offer terms that conventional loans cannot match.
Because the VA backs a portion of the loan, approved borrowers can buy with zero down payment, skip private mortgage insurance, and often qualify with a lower credit score and a more flexible debt-to-income ratio than a conventional loan would allow.
Who Is Eligible for a VA Loan?
Eligibility is based on your military service and your discharge status. Your discharge must be under conditions other than dishonorable. Here is the general outline of who qualifies:
| Service type | General requirement |
|---|---|
| Active duty | Generally 90 consecutive days of active service |
| Veteran, wartime | 90 days of active service during wartime |
| Veteran, peacetime | 181 days of active service during peacetime |
| National Guard / Reserve | 6 creditable years of service, or 90 days under certain conditions |
| Surviving spouses | Spouses of service members who died in service or of service-connected conditions may qualify |
Note: These are general guidelines. Your individual situation depends on your dates of service, duty status, and discharge characterization. The best way to confirm is to obtain your Certificate of Eligibility.
The Biggest Benefits of a VA Loan
Zero Down Payment
With full entitlement, you can buy a home with no down payment at all. That is a major advantage in South Jersey, where saving a 20% conventional down payment on a $400,000 to $500,000 home means putting together $80,000 to $100,000 in cash. A VA loan removes that hurdle.
No Private Mortgage Insurance
Conventional loans require private mortgage insurance when you put down less than 20%, and that premium can add $150 or more to your monthly payment. VA loans never require PMI, regardless of how much you put down. That is money you keep every single month for as long as you hold the loan.
More Flexible Qualifying
VA loans generally allow for a lower credit score and a more forgiving debt-to-income ratio than conventional loans. That opens the door for buyers who might otherwise be told to wait and save.
Reusable Benefit
Your VA loan benefit is not a one-time deal. Once you pay off a previous VA loan, you can have your entitlement restored and use the benefit again. Many buyers use it more than once over a lifetime.
What Is the VA Funding Fee?
The main cost unique to a VA loan is the funding fee. It is a one-time fee paid to the VA, and it is a percentage of the loan amount. The exact rate depends on whether it is your first use of the benefit, how much you put down, and your loan type. As of 2026, the rates for purchase loans look like this:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Note: Funding fee rates are set by the VA and can change. Confirm the current rate with your lender before you lock in. On a $450,000 zero-down loan, a 2.15% fee is roughly $9,675. The good news is that the fee can typically be financed into the loan rather than paid out of pocket.
Who Is Exempt From the Funding Fee?
Some borrowers do not have to pay the funding fee at all. You are generally exempt if you have a service-connected disability rating of 10% or higher, if you are a surviving spouse receiving Dependency and Indemnity Compensation, or if you are a Purple Heart recipient on active duty. If you think you may qualify for an exemption, it is worth confirming before you assume you will owe the fee.
How the VA Loan Process Works
The VA loan process has a few extra steps compared to a conventional purchase, but each one is straightforward once you know what to expect.
Step 1: Get Your Certificate of Eligibility (COE)
The COE proves your qualifying service and shows your basic entitlement, currently around $36,000. You can often get it instantly online through VA.gov or the VA mobile app, or your lender can request it for you. This is the first box to check, and it tells you exactly what benefit you are entitled to.
Step 2: Get Pre-Approved by a Lender
The VA guarantees the loan, but a private lender still has to approve you. That means a standard review of your credit, income, and debt-to-income ratio. I always recommend getting fully pre-approved before you start touring homes, because it tells you your real price range and makes your offer more competitive. See my guide to getting pre-approved for the full picture.
Step 3: Find a Home and Make an Offer
Once you are pre-approved, you can shop with confidence. I help VA buyers target homes that are well suited to a VA purchase and write offers that stand up in a competitive market without pushing you into a decision you are not comfortable with.
Step 4: Complete the VA Appraisal
Every VA purchase loan requires a VA appraisal. An independent VA-approved appraiser establishes the property's fair market value and produces a Notice of Value. The appraiser also checks that the home meets the VA's Minimum Property Requirements for safety, sanitation, and structural integrity. This step protects you, but it is important to understand it is not a substitute for a home inspection.
VA Appraisal vs. Home Inspection
The VA appraisal and the home inspection serve two different purposes. The appraisal is required by the VA and is focused on value and basic livability. The home inspection is your chance to hire a licensed inspector to examine the roof, systems, structure, and mechanicals in detail. You should always get a full home inspection even when a VA appraisal is done. My home inspection guide explains what to expect.
If the appraiser flags something that does not meet the VA's Minimum Property Requirements, the issue is typically either repaired before closing, or the terms of the sale are renegotiated. Knowing this before you make an offer helps you avoid surprises later.
Buying With a VA Loan in South Jersey
VA loans work for any home you buy in Burlington County or the wider South Jersey region, and buyers use them across the full price range. Whether you are looking at a first home in Mount Laurel, a move-up home in Medford, or a place near the Delaware River in Riverton or Palmyra, the benefit is the same.
A few things I watch with VA buyers specifically: make sure the home is likely to meet the VA's property requirements so you do not lose a good property late in the process, keep your offer competitive without overpaying, and remember that the VA appraisal is meant to protect your value, not to hold up a fair deal. If you have questions about a specific town, the South Jersey affordability guide is a useful place to start.
VA Loan vs. Conventional: A Quick Comparison
| Feature | VA loan | Conventional |
|---|---|---|
| Down payment | 0% with full entitlement | Usually 3% to 20% |
| Private mortgage insurance | None | Required below 20% down |
| Credit flexibility | Generally more flexible | Varies by lender |
| One-time funding fee | Yes, unless exempt | No |
| Who qualifies | Eligible military only | Any qualified borrower |
Things to Watch With a VA Loan
A VA loan is a powerful tool, but it is not automatically the right fit for everyone. Here are a few honest considerations:
- The funding fee adds to your cost unless you are exempt. Financing it raises your loan balance slightly, so weigh that against the savings from no PMI and no down payment.
- Some sellers worry about the VA appraisal. In a competitive market, an offer with fewer potential hiccups can look more attractive. A good agent can position your VA offer so it competes fairly.
- Not every home will pass the VA's property requirements. That is a reason to be selective and to inspect before you commit, not a reason to avoid the program.
- Your benefit is reusable, so even if this purchase is not the right time for a VA loan, the option does not disappear.
Frequently Asked Questions About VA Loans
Do I need a down payment for a VA loan?
No. With full entitlement, you can buy a home with zero down payment. That is one of the biggest advantages of the program compared to conventional financing.
Do VA loans require private mortgage insurance?
No. VA loans never require PMI, no matter how much you put down. That can save you $150 or more per month compared to a conventional loan with less than 20% down.
Is there a credit score requirement for a VA loan?
There is no single VA-set minimum, but your private lender will have its own standards. VA loans generally allow a lower credit score and a more flexible debt-to-income ratio than conventional loans, which is why many buyers who have been told to wait can still qualify.
Can I use a VA loan more than once?
Yes. Your benefit is reusable. Once you pay off a previous VA loan, you can have your entitlement restored and use the benefit again, subject to your remaining entitlement.
Is the VA appraisal the same as a home inspection?
No. The VA appraisal establishes value and checks the home against the VA's Minimum Property Requirements. A home inspection is a separate, more detailed examination of the property's condition. Always get a full home inspection even when a VA appraisal is required.
Who is exempt from the VA funding fee?
Borrowers with a service-connected disability rating of 10% or higher, surviving spouses receiving Dependency and Indemnity Compensation, and Purple Heart recipients on active duty are generally exempt. Confirm your status with your lender before closing.
Where a VA Loan Fits in Your Plan
The best way to decide whether a VA loan is right for you is to look at your whole picture: your service eligibility, your credit, your savings, and your goals. If you qualify, it is almost always worth serious consideration, especially for a first purchase where saving a full down payment is the biggest barrier.
If you are weighing a VA loan against an FHA or conventional option, my FHA vs. conventional comparison and the broader types of mortgage loans guide give useful context. And if you are early in the journey, the first-time home buyer checklist will keep you on track.
Ready to See What a VA Loan Means for You?
I help veterans and active-duty buyers understand their options and move forward with confidence, whether that means a VA loan or another path. No pressure, just honest guidance.
Bob Millaway
Epique Realty Agent · AI Certified Agent · 728+ homes sold across Burlington County and South Jersey. Licensed NJ Salesperson #791082.