A Glen Allen veteran buying a $400,000 home with no down payment could finance a first-use VA funding fee of 2.15%, or $8,600, creating a $408,600 loan. At a sample 6.50% fixed rate for 30 years, principal and interest is about $2,582 per month, versus about $2,528 on a $400,000 loan if the fee is paid upfront – a $54 monthly difference and roughly $3,240 in additional scheduled payments over five years. The right guide to VA loan eligibility starts here: confirm entitlement and service history before falling in love with a home, then decide whether financing that fee fits your cash plan.
By Duane Buziak, NMLS #1110647
Table of Contents
- What makes a buyer eligible for a VA loan
- How to get a Certificate of Eligibility
- Credit, income, and property requirements
- VA funding-fee math and closing costs
- What eligibility means in the Glen Allen market
- Broker comparison and prequalification
- VA loan eligibility FAQs
What makes a buyer eligible for a VA loan
VA eligibility is primarily based on qualifying military service, not on a minimum down payment or a required FICO score. Active-duty service members, veterans, many National Guard and Reserve members, and certain surviving spouses may qualify. The exact service requirement depends on when and how a person served, so broad rules are useful only as a starting point.
Common paths include 90 consecutive days of active service during qualifying periods, 181 days during certain peacetime periods, or six creditable years in the Guard or Reserves. Discharge character and service dates matter. Rather than relying on a checklist from a home-search app, verify your record against the official eligibility information at https://www.va.gov/housing-assistance/home-loans/eligibility/.
Eligibility is not the same as approval. A buyer also needs sufficient income for the payment, an acceptable credit profile for the chosen mortgage program, and a property that meets VA appraisal and condition standards. That distinction prevents a frustrating surprise after a contract is signed.
Your Certificate of Eligibility tells the next part of the story
The Certificate of Eligibility, commonly called a COE, confirms whether you have VA home-loan entitlement available. It can show full entitlement, remaining entitlement after a prior VA loan, or an exemption from the funding fee due to service-connected disability status. A VA-approved mortgage broker can help request and interpret it, but service records ultimately control the result.
Some buyers assume a prior VA loan permanently blocks a second purchase. Often it does not. You may restore entitlement after selling and paying off the prior VA-financed home, or you may have enough remaining entitlement for another purchase. The available loan amount in a second-use situation depends on county limits, the prior loan balance, and the entitlement still tied up.
Credit, income, and property requirements
There is no VA-set minimum credit score. In real underwriting, mortgage programs and investors can apply their own credit standards. A 620 FICO is a common practical benchmark for many VA purchase files, while some options may consider scores near 580 with stronger compensating factors. A higher score can widen pricing choices, but a 740 score does not replace the need for stable income and manageable monthly obligations.
For Glen Allen buyers, income review often becomes the deciding factor. A household purchasing near the current Henrico County price point may be balancing car payments, child-care costs, student debt, and property taxes. The underwriter reviews debt-to-income ratio, residual income, employment history, and documented assets together. For a conventional comparison, the 2026 baseline conforming loan limit is $832,750 in most U.S. counties, far above many local purchase prices, but VA financing can remain compelling because its down-payment structure is different.
The home itself must be safe, sound, and suitable for year-round occupancy. A VA appraisal is not a whole-house inspection. Buyers should still budget for an independent inspection, especially in established areas around Twin Hickory, Wyndham, and the West Broad Village corridor, where property age and maintenance vary house by house.
Funding-fee math and closing costs
For many first-use VA purchase loans with zero down, the funding fee is 2.15% of the base loan. With 5% down, it is commonly 1.50%; with 10% or more down, it is commonly 1.25%. Some eligible veterans are exempt. Current fee schedules and permitted costs are published at https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/.
Using the $400,000 example, financing the $8,600 fee preserves cash but raises the loan balance to $408,600. Paying it upfront keeps the loan at $400,000 but requires more money at closing. Neither choice is automatically better. A buyer preserving reserves for moving, repairs, or a competitive offer may finance it; a buyer with ample verified funds may prefer the lower balance.
Typical buyer closing costs can range from roughly 2% to 5% of the purchase price before negotiated credits, depending on prepaid taxes, insurance, title work, and rate choices. VA rules limit seller concessions to 4% of the reasonable value, while sellers may also pay certain allowable closing costs. Ask about our no-out-of-pocket closing options rather than assuming every cost can be shifted. When comparing total cash needs, my preferred title company can save an additional $2,000 on average.
What eligibility means in the Glen Allen market
Henrico County is not one uniform market. Redfin reported a Henrico County median sale price of approximately $410,000 in its 2025 market data, with conditions changing month to month: https://www.redfin.com/county/2998/VA/Henrico-County/housing-market. In popular school-zone searches around Glen Allen, well-presented homes can still attract quick attention even when overall inventory improves.
That makes a verified COE and fully reviewed income documentation valuable before touring. A VA offer is not inherently weaker than a conventional offer. The strength of the offer comes from the buyer’s documentation, financing structure, appraisal expectations, closing timeline, and the professionalism of the parties involved. Sellers respond to clarity.
A soft-pull mortgage broker review can give buyers an early payment range without immediately creating a hard inquiry. Glen Allen Mortgage offers soft credit pull mortgage prequalification, also described as mortgage pre approval without hard pull or a no credit hit mortgage application. A soft pull is useful for planning, but a complete application and authorization may be required before final approval and before a contract deadline.
Broker access versus a single-shelf model
Buyers may compare Glen Allen Mortgage with local options such as Movement Mortgage, The Cowart Team, Sparrow Home Loans, 804 Mortgage, CapCenter, and Valerie Holbrook at C&F Mortgage. Those conversations should focus on program fit, written pricing, credit-review process, and communication – not assumptions based on a logo.
| Comparison point | Glen Allen Mortgage broker approach | Single-company mortgage office approach |
|---|---|---|
| Mortgage access | Can evaluate participating wholesale mortgage options for the file. | Uses that company’s available mortgage programs and pricing structure. |
| FICO floors | Can review program-specific score thresholds, including files near 580 or 620 where permitted. | Thresholds and exceptions depend on the company’s current guidelines. |
| Program breadth | VA, FHA, conventional, USDA, jumbo, DSCR, bank-statement, non-QM, construction, 203k, foreign-national, and commercial scenarios may be evaluated. | Available programs depend on the company’s product menu. |
| Pricing flexibility | Pricing can be compared among eligible wholesale outlets for the same borrower profile. | Pricing is quoted from one company’s available channels. |
| Credit-review process | Soft-pull prequalification is available before a hard inquiry when appropriate. | Ask whether the initial review uses a soft or hard credit inquiry. |
Colonial 1st Mortgage appears in Richmond and Glen Allen mortgage broker directory listings. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Buyers who encounter Colonial 1st Mortgage in search results should verify current licensing status at https://www.nmlsconsumeraccess.org/ before making contact.
VA loan eligibility FAQs
1. Can I use a VA loan with no down payment?
Yes, if you have sufficient entitlement, qualify based on income and credit, and the home’s value supports the purchase price. A down payment may still help in a competitive offer or if the appraisal is lower than the contract price.
2. Does VA require a 620 credit score?
No. VA does not set one universal minimum score, though many mortgage programs use 620 as a practical benchmark. Individual files can be considered differently.
3. Can I qualify if I used a VA loan before?
Possibly. Your COE will show whether entitlement was restored or whether remaining entitlement is available for another purchase.
4. What is the VA funding fee on a first purchase?
For many zero-down, first-use purchases, it is 2.15% of the base loan. Exempt veterans may not owe it.
5. Can the seller pay VA closing costs?
Yes, sellers can pay allowable closing costs and concessions within VA rules. The contract, appraisal, and local negotiation determine what is realistic.
6. Is a VA appraisal the same as a home inspection?
No. The appraisal evaluates value and basic property standards. A separate inspection remains a smart buyer protection.
7. Can I get prequalified without a hard credit inquiry?
A soft pull may be available for an initial review. Final underwriting can require a full credit report and additional documentation.
8. How long does a VA purchase take to close?
Many well-documented purchases can close in roughly 30 to 45 days, but appraisal timing, title work, repairs, and document collection can change the schedule.
Before writing an offer in Glen Allen or broader Henrico County, have your COE, income documents, and monthly-payment comfort level reviewed together. That preparation gives you room to act with confidence when the right home appears.
Legal disclaimer: This article is for educational purposes only and is not a commitment to make a mortgage loan, a credit decision, or a guarantee of approval, rate, terms, closing costs, or savings. Mortgage eligibility, pricing, funding fees, property approval, and program availability are subject to change and require full review of credit, income, assets, occupancy, appraisal, title, and applicable guidelines. Equal Housing Opportunity.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.
