Approximately 80% of VA borrowers put zero down when purchasing a home. In Seattle, where the median home price exceeds $850,000, that means keeping $85,000+ in the bank instead of tying it up in a down payment. Combined with no PMI requirement, VA loans offer monthly savings that can exceed $500 compared to equivalent conventional financing.
Who's Eligible for VA Loans?
VA loan eligibility extends to:
- Veterans: Honorably discharged after meeting minimum service requirements
- Active-duty service members: After 90 continuous days of service
- National Guard and Reserve members: 6 years of service, or 90 days of active-duty service
- Surviving spouses: Of veterans who died in service or from service-connected disabilities
To confirm eligibility, you'll need a Certificate of Eligibility (COE). Julie can pull this directly through the VA's Web LGY system, often within minutes.
VA Loan Benefits
No Down Payment Required
With full entitlement, you can finance 100% of the purchase price with no money down, regardless of loan amount. This applies even to Seattle homes priced above $1 million.
No Private Mortgage Insurance
Unlike FHA or low-down-payment conventional loans, VA loans never require PMI. On an $850,000 home, that saves $200-500/month compared to conventional financing at 5-10% down.
Competitive Interest Rates
VA rates are typically 0.25-0.50% lower than conventional rates because the government guarantee reduces lender risk. Over a 30-year loan, that can save tens of thousands of dollars.
Limited Closing Costs
The VA limits what fees lenders can charge to veterans. Additionally, sellers can pay all of a buyer's loan-related closing costs, which is common in negotiated transactions.
No Prepayment Penalty
You can pay off or refinance your VA loan at any time without penalty.
VA Funding Fee
The VA funding fee is a one-time cost that helps sustain the VA loan program. It varies based on down payment, loan purpose, and whether this is your first VA loan:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% - 4.99% | 2.15% | 3.3% |
| 5% - 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On an $850,000 loan with 0% down (first use), the funding fee is $18,275. This can be rolled into the loan, so you don't need to pay it at closing.
Fee exemptions: Veterans with service-connected disabilities, surviving spouses, and Purple Heart recipients on active duty are exempt from the funding fee.
VA Loan Limits in 2026
For veterans with full entitlement (never used VA benefits or fully restored), there is no loan limit. You can finance any amount with 0% down as long as you qualify for the payment.
For veterans with partial entitlement (existing VA loan or unrestored entitlement from a previous loan), the King County loan limit of $1,063,750 applies. Borrowing above this limit may require a down payment.
VA Credit and Income Requirements
Credit Score
The VA doesn't set a minimum credit score, but most lenders require 620. Some VA-focused lenders work with scores as low as 580. Julie can connect you with lenders appropriate for your credit profile.
Debt-to-Income Ratio
The VA prefers a 41% DTI but allows higher ratios with compensating factors like excellent credit, significant residual income, or substantial savings.
Residual Income
Unique to VA loans, residual income measures the money left after all major monthly expenses. The VA sets minimum residual income requirements based on family size and region. Seattle is in the "West" region with the highest minimums:
- Family of 1: $491/month residual
- Family of 2: $823/month residual
- Family of 3: $889/month residual
- Family of 4: $1,003/month residual
VA Property Requirements
VA loans require properties to meet Minimum Property Requirements (MPRs), similar to FHA. The VA appraisal will check for:
- Safe and sanitary living conditions
- Working mechanical systems (HVAC, plumbing, electrical)
- Adequate roofing and foundation
- No health or safety hazards
Properties needing significant repairs may not qualify for VA financing unless repairs are completed before closing or a VA renovation loan is used.
VA Loans for Condos
Condos must be VA-approved or receive individual approval (SPAC). Many Seattle condo buildings are on the VA-approved list. Julie can check approval status before you make an offer.
Competing in Seattle's Market
Some sellers have hesitated to accept VA offers due to myths about appraisal requirements and closing delays. The reality:
- VA loans close on similar timelines to conventional when properly managed
- VA appraisals are thorough but not unreasonable
- A fully underwritten VA pre-approval signals serious, qualified buyers
Julie provides VA buyers with fully underwritten approvals (not just pre-qualifications) that give sellers confidence the transaction will close.
Using VA Benefits More Than Once
VA loan benefits aren't one-time use. You can:
- Sell your home and restore full entitlement
- Refinance into a conventional loan and restore entitlement
- Keep your current VA loan and use remaining entitlement for a second home (if you have enough)
Julie can calculate your remaining entitlement and explain your options for using VA benefits again.
Start Your VA Pre-Approval
The first step is pulling your Certificate of Eligibility and running the numbers. Julie works with veterans and active-duty service members across Seattle and can have you fully pre-approved and ready to make offers.
Call (206) 778-5825 or send a message to get started.