What Is a VA Home Loan?
A VA home loan is a mortgage benefit earned through military service it is available to eligible veterans, active duty service members, reservists, National Guard members, and qualifying surviving spouses. It is backed by the U.S. Department of Veterans Affairs, which means lenders can offer terms that simply are not available on conventional loans.
The VA loan is not a one-time benefit. You can use it multiple times throughout your life.
Why the VA Loan Is Hard to Beat
No down payment required. Eligible borrowers with full VA entitlement can purchase a home with zero down and no loan limit set by the VA. How much you can borrow depends on what a lender will approve based on your income and credit profile, not an arbitrary cap.
No monthly mortgage insurance. Conventional loans require private mortgage insurance if you put less than 20% down. FHA loans require mortgage insurance for the life of the loan in most cases. The VA loan has neither. That difference alone can save you hundreds of dollars every single month.
More flexible qualifying standards. The VA loan program evaluates your full financial picture including something called residual income, which measures what you have left after your bills are paid. This often allows veterans to qualify in situations where a conventional loan would say no.
The VA loan is assumable. If you sell your home, a qualified buyer veteran or civilian in some cases may be able to assume your existing VA loan and its interest rate. In a high-rate environment, this can make your home significantly more attractive to buyers.
You can use it again. The VA loan benefit does not expire and does not disappear after first use. Whether this is your first home near Ft. Campbell or your fourth PCS move, your benefit may be available to you.
Understanding the VA Funding Fee
The VA funding fee is a one-time charge that helps sustain the loan program for future generations of service members. It is not paid to your lender it goes directly to the VA. And unlike monthly mortgage insurance, it is paid once and done.
2026 Funding Fee Rates — Purchase Loans:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
The fee can be rolled into your loan amount so you do not need cash at closing to cover it.
New in 2026: The VA funding fee is now tax deductible for eligible veterans, service members, and surviving spouses. Speak with your tax professional about how this applies to your situation.
You may not owe a funding fee at all. Veterans receiving compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation, and Purple Heart recipients on active duty are among those who qualify for a complete funding fee exemption. We will help you determine your status before your loan closes.
Funding fee rates are set by Congress and subject to change. Always verify current figures at VA.gov or speak with our team.
Streamline Refinancing — The IRRRL
If you already have a VA loan and interest rates have dropped, the Interest Rate Reduction Refinance Loan known as the IRRRL or VA Streamline is one of the simplest refinance options available anywhere in the mortgage market.
The IRRRL allows you to refinance to a lower rate with minimal documentation, no appraisal in most cases, and a reduced funding fee of just 0.50%. If you bought when rates were higher and want to lower your payment, this is worth a conversation.
A Word About Entitlement
VA entitlement is the amount the VA guarantees on your behalf and it directly affects how much you can borrow without a down payment.
If you have never used your VA loan benefit, you likely have full entitlement meaning no loan limit applies.
If you currently have an active VA loan or have had one in the past without selling the home or fully restoring your entitlement, you may have partial entitlement remaining. This is where things get complicated and where working with an experienced VA lender matters.
We review your Certificate of Eligibility and your entitlement status at the very start of the process no surprises at the finish line.
Serving Ft. Campbell and All of Clarksville
We work with VA loan borrowers PCS'ing to Ft. Campbell, veterans retiring here, and active duty families putting down roots in this community. We also hold licenses in both Tennessee and Kentucky, so if you are looking at homes on either side of the state line, we have you covered.
Whether this is your first VA loan or you have been through it before, we will walk you through every step, from Certificate of Eligibility to closing day.
Ready to get started? Call us at (931) 551-8999 or schedule a consultation online.
Legacy Mortgage Services | 329 Warfield Blvd, Suite A | Clarksville, TN 37043 Company NMLS: 1613 | Jennifer — NMLS #18384 | Bruce — NMLS #33561 TN License: 108726 | KY License: MC80851 | Equal Housing Opportunity