VA Home Buying Guide for Sacramento and Greater Sacramento

One of the most valuable features of VA-backed purchase loans is the possibility of purchasing an eligible home without a down payment.

The borrower must still qualify with a lender, and the property must meet applicable requirements.

No down payment does not necessarily mean no money is needed at closing.

Buyers should prepare for closing costs, prepaid expenses, inspections and any other required funds.

VA loans also generally do not require monthly private mortgage insurance.

The Certificate of Eligibility, commonly called a COE, establishes your eligibility for the VA home loan benefit.

You can request a COE through the Department of Veterans Affairs or work with a participating lender.

Eligibility depends on service history and other applicable requirements.

Many borrowers pay a one-time VA funding fee.

The amount depends on factors such as prior use of the benefit and down payment.

Certain veterans and other eligible borrowers are exempt, including qualifying recipients of service-connected disability compensation.

Ask your lender to confirm your funding fee status before comparing loan options.

Not all VA lenders offer the same interest rates, fees or service.

Before shopping for a home, understand three numbers:

1. The maximum mortgage amount you are comfortable borrowing
2. Your total estimated monthly payment, including taxes and insurance
3. The cash you will need to close

Request and compare official Loan Estimates from lenders once your applications reach the stage that requires them.

Pay attention to interest rates, discount points, lender fees and the total cost of borrowing.

A VA appraisal helps establish the property's value and whether the home meets applicable minimum property requirements.

However, the VA appraisal is not a substitute for an independent home inspection.

Buyers should consider professional inspections and investigate significant defects before removing contractual protections.

Homes with serious safety, sanitation or structural issues may require corrections or additional lender review.

Subject to eligibility and lender requirements, VA-backed financing can potentially be used for single-family homes, certain condominiums, eligible manufactured homes and properties with up to four residential units when the borrower occupies the property as required.

Some new construction purchases may also qualify.

Property type, condition and lender policies matter, so confirm the financing early.

VA benefits are not necessarily a one-time opportunity.

Eligible borrowers may reuse the benefit, and borrowers with full entitlement generally do not have a VA-imposed loan limit, although affordability, appraisal and lender underwriting still apply.

Borrowers with remaining entitlement already committed to another VA loan may face additional requirements.