VA Loan – Client Call Reference

🏠 VA Loan — Client Call Reference

Henry | Own It Group | Live Call Guide🧮 Nova Calculator 🎙️ Noota

VA Loan Eligibility

Who Qualifies?

Active Duty: 90+ continuous days of active service
Veterans: Served 181 days during peacetime OR 90 days during wartime
National Guard / Reserves: 6+ years of service OR 90 days active duty under Title 10 orders
Surviving Spouses: Unremarried spouse of a veteran who died in service or from service-connected disability (may also qualify if remarried after age 57)

Certificate of Eligibility (COE)

The COE proves to lenders that the borrower qualifies for VA benefits. Ways to obtain:

Through the lender (usually fastest — we can pull it via VA portal)
Online at VA.gov eBenefits portal
By mail using VA Form 26-1880

VA Entitlement

Basic Entitlement: $36,000 (used for loans under $144,000)
Bonus/Tier 2 Entitlement: Up to 25% of the conforming loan limit (currently $766,550 in most areas → $191,637 max guarantee)
Remaining Entitlement: Veterans who've used VA before can still have remaining entitlement — always check the COE.

Questions to Ask Your Client

🪖 Military Service

What branch of the military did you serve in?
Are you currently on active duty, or are you a veteran / reservist?
What were your service dates? (From / To)
Did you receive an honorable discharge?
Have you ever used your VA loan benefit before?
Do you already have a Certificate of Eligibility (COE)?
Are you a surviving spouse of a veteran?

🏠 Home Purchase Goals

Are you looking to purchase or refinance?
What price range are you looking at?
Is this your primary residence? (VA requires owner-occupancy)
Do you have a specific area or neighborhood in mind?
Are you working with a real estate agent already?
What's your target move-in / closing timeline?

💰 Financial Picture

What is your current monthly income (before taxes)?
Are you employed — W-2, self-employed, or retired / pension?
Do you know your current credit score range?
Do you have any existing monthly debts (car payments, student loans, credit cards)?
Do you have savings for closing costs? (VA has no down payment, but closing costs apply)
Have you been pre-approved before or is this your first time?
Any recent bankruptcies, foreclosures, or late payments in the last 2 years?

🔄 If They've Used VA Before

Was the previous VA loan paid off? Was the property sold?
Do you still have the property from the previous VA loan?
Do you know if your entitlement was restored?

VA Loan Benefits — How to Explain Them

Use these talking points to clearly communicate the VA loan advantage to your client.

🚫💵

No Down Payment RequiredUnlike conventional loans (3–20%) or FHA (3.5%), VA loans require ZERO down payment. Your client can buy a home without depleting their savings — that money can stay in their pocket for moving costs, furnishings, or emergencies.

🚫🛡️

No Private Mortgage Insurance (PMI)Conventional borrowers who put less than 20% down pay PMI — often $100–$300/month. VA loans have NO PMI ever. This alone can save your client thousands per year.

📉

Competitive (Often Lower) Interest RatesBecause the VA guarantees a portion of the loan, lenders take on less risk — so they typically offer rates 0.25% to 0.5% lower than conventional loans. Over 30 years, this is significant savings.

📊

More Flexible Credit RequirementsThe VA doesn't set a minimum credit score, though most lenders require around 580–620. This gives veterans with imperfect credit a real path to homeownership that conventional loans wouldn't allow.

⚖️

Limits on Closing CostsThe VA limits what lenders can charge veterans — protecting them from inflated fees. Sellers can also pay all of the veteran's closing costs (up to 4% in seller concessions).

🔁

Reusable Benefit — Use It Again and AgainOnce a VA loan is paid off, the entitlement is restored and the veteran can use the benefit again. They can even have TWO VA loans at once in some cases (with remaining entitlement).

🛑

No Prepayment PenaltyVeterans can pay off the loan early without any penalty — great for those who plan to make extra payments or sell in a few years.

🆘

VA Foreclosure Avoidance AssistanceIf a veteran ever struggles financially, the VA has a team of loan technicians who will intervene on their behalf with the servicer — an extra safety net not available with other loans.

VA Loan Terminology

Know these cold — clients will ask, and confidence builds trust.

COE — Certificate of Eligibility

Document issued by the VA proving the borrower is eligible for VA loan benefits. Required by lenders. We can often pull this for you electronically in minutes.

VA Funding Fee

A one-time fee paid to the VA (not the lender) to help sustain the program. Ranges from 1.25% to 3.3% of the loan amount, depending on down payment and usage. Can be rolled into the loan. Waived for veterans with 10%+ disability rating.

Entitlement

The dollar amount the VA will guarantee on the loan. Full entitlement means no loan limit. Partial entitlement applies when a previous VA loan wasn't paid off.

VA Appraisal / MPRs

The VA requires a VA-ordered appraisal to confirm property value AND that it meets Minimum Property Requirements (MPRs) — the home must be safe, sanitary, and structurally sound.

Residual Income

Money left over after paying all major monthly expenses (mortgage, debts, taxes, insurance). The VA uses this — not just DTI — to ensure veterans can actually afford the loan comfortably.

DTI — Debt-to-Income Ratio

Total monthly debts divided by gross monthly income. VA prefers under 41%, but can approve higher with strong residual income and compensating factors.

VA IRRRL

Interest Rate Reduction Refinance Loan — a streamlined VA refinance to lower your rate with minimal paperwork. Also called a "VA Streamline Refinance." No appraisal or income verification usually required.

VA Cash-Out Refinance

Allows veterans to refinance any loan type (not just VA) and pull out equity as cash. Can be used to pay off debt, home improvements, or any purpose.

Jumbo VA Loan

VA loan above the conforming loan limit ($766,550 for 2024 in most areas). With full entitlement, there's no loan limit — but the lender may still impose overlays.

Assumable Loan

VA loans are assumable — a buyer (even a non-veteran) can take over the seller's VA loan and its rate. A huge selling point in a high-rate environment.

Service-Connected Disability

A VA-recognized condition caused or worsened by military service. Veterans with 10%+ rating have the VA Funding Fee waived. Those with 100% P&T disability may also qualify for property tax exemptions.

Overlay

Lender-specific requirements that go beyond VA minimum guidelines — e.g., a lender may require a 620 credit score even though VA doesn't mandate a minimum.

MPRs — Minimum Property Requirements

VA standards that a property must meet: adequate roofing, working utilities, no lead paint hazards, no pest infestations, safe access, etc. The home must be move-in ready.

DD-214

Certificate of Release / Discharge from Active Duty — the primary document proving military service. Essential for obtaining COE. Active duty members provide a Statement of Service instead.

PMI — Private Mortgage Insurance

Monthly insurance required on conventional loans with less than 20% down. VA loans have NO PMI — ever. This is one of the biggest monthly savings for veterans.

Owner-Occupancy Requirement

The veteran must intend to live in the property as their primary residence within 60 days of closing. VA loans cannot be used for investment properties or vacation homes.

VA Loan Process — Step by Step

Walk your client through this so they know exactly what to expect.

Confirm Eligibility & Obtain COEVerify service history, get DD-214 (or Statement of Service for active duty). We pull the COE through the VA portal — usually takes minutes. This is where we confirm full vs. remaining entitlement.

Pre-Qualification / Pre-ApprovalCollect income docs, run credit, calculate DTI and residual income. Issue a pre-approval letter so the client can shop confidently. Sellers take pre-approved buyers much more seriously.

Home Search & Purchase ContractClient finds a home with their agent. Contract is signed. We have typically 30–45 days to close from contract. The home must meet VA MPRs.

VA Appraisal OrderedLender orders a VA-approved appraiser (the client cannot choose). The appraisal confirms value AND property condition meets MPRs. Takes 1–2 weeks typically.

UnderwritingFile goes to underwriter who reviews all documents — income, credit, appraisal, COE. May request "conditions" (additional docs). This is where patience matters most — typically 1–2 weeks.

Clear to Close (CTC)All conditions met, loan is approved. Client receives Closing Disclosure (CD) at least 3 business days before closing with final numbers.

Closing DayClient signs final loan documents. Funds are disbursed. Keys are handed over. VA funding fee is either paid at closing or rolled into the loan. Welcome home! 🎉

⏱ Typical Timeline

Pre-approval: 1–3 days | Contract to Close: 30–45 days | Appraisal: 1–2 weeks | Underwriting: 1–2 weeks

Call Scripts & Talking Points

Opening the Call

You say: "Hey [Name], thanks for reaching out — I really appreciate you trusting me with this. I work with veterans and active duty servicemembers all the time, and honestly, the VA loan is one of the best benefits out there. Let me make sure we get you the most out of it. Can I ask you a few quick questions to understand where you're at?"

Explaining the VA Loan Benefit

You say: "So here's the thing — the VA loan is really the best loan product on the market, and it's a benefit you've earned. No down payment, no mortgage insurance, and typically a lower interest rate than anything a conventional buyer gets. For most veterans, this means you can buy a home and your monthly payment is actually LOWER than what you'd pay in rent — and you're building equity the whole time."

On the VA Funding Fee

You say: "The one cost specific to VA loans is the funding fee — it's a one-time fee that goes directly to the VA to keep this program running for future veterans. The good news is we can roll it right into the loan so it doesn't come out of your pocket on closing day. And if you have a service-connected disability rating of 10% or higher, this fee is completely waived."

On the Appraisal / MPRs

You say: "One thing to know: the VA wants to make sure they're backing a home that's safe and livable for you. So our appraisal isn't just about value — they're also checking that the home meets basic condition standards. This actually protects you as the buyer. Fixer-uppers or homes with major issues may not qualify, so we'll want to pick a home that's in good condition."

Setting Expectations on Timeline

You say: "The process is really straightforward. We'll get your pre-approval done in a few days once I have your documents. Once you're under contract, we're typically looking at 30 to 45 days to close. The VA appraisal is usually the longest piece — about one to two weeks — but I stay on top of it and keep you updated every step of the way."

Closing the Call / Next Steps

You say: "Here's what I'd love to do next — let's get your pre-approval started so when you find the right home, you're ready to move fast. I'll send you a short list of documents to get us going, and I'll pull your Certificate of Eligibility on my end. This whole part is free and doesn't obligate you to anything. Sound good?"

Common Objections & How to Handle Them

"I heard VA loans take forever to close."

That used to have more truth to it years ago, but today VA loans close in the same 30–45 day window as conventional loans. I specialize in VA loans and know exactly how to keep things moving. The key is having your documents ready and working with an experienced lender — which is what you've got here.

"Sellers don't like VA loans."

Some sellers have misconceptions, but a strong pre-approval letter and a great agent can overcome that. Also, VA loans are fully assumable — which is a HUGE selling point for the seller if they're looking to attract buyers in a high-rate environment. We can frame that as a benefit when making offers.

"I've already used my VA loan before."

Great news — the VA benefit is reusable. If you've paid off a previous VA loan and sold the property, your full entitlement is likely restored. Even if it's not fully restored, you may have remaining entitlement we can work with. Let me pull your COE right now and we'll know exactly where you stand.

"I have bad credit. Will I qualify?"

The VA doesn't set a minimum credit score, which gives us more flexibility than conventional loans. Most lenders, including the ones I work with, can work with scores around 580–620. What's your current score range? Depending on where you are, we may be able to get you approved now, or I can give you a quick roadmap to get there in a few months.

"What about the VA funding fee? That sounds expensive."

I totally understand the concern, but let's put it in perspective. A conventional borrower putting 0% down would pay PMI every single month — that could be $200–$400/month for years. The VA funding fee is a one-time charge, and we roll it into the loan so you don't pay it out of pocket. When you do the math, VA is still the better deal by far. And if you have any disability rating, the fee is waived entirely.

"Can I use a VA loan to buy an investment property?"

VA loans are for primary residences only — the VA requires you to live in the home. That said, you can buy a multi-unit property (up to 4 units) with a VA loan as long as you live in one of the units. That's actually a great wealth-building strategy — you live in one unit and rent the others.

"I don't have money for closing costs."

That's one of the best parts of working with a VA loan. We can negotiate for the seller to cover your closing costs — up to 4% in seller concessions is allowed. We can also look at lender credits to offset costs. In many cases, veterans get to closing day with very little or nothing out of pocket beyond the earnest money deposit.

VA vs. FHA vs. Conventional — At a Glance

Use this to show your client why VA is the clear winner for eligible veterans.

Feature	VA Loan YOUR CLIENT	FHA Loan	Conventional
Down Payment	0% Required	3.5% minimum	3%–20%
Mortgage Insurance	NONE — Ever	MIP for life of loan	PMI until 20% equity
Interest Rates	Typically lowest	Moderate	Varies (higher w/ low credit)
Min. Credit Score	No VA minimum (~580–620 lender)	580 (3.5% down)	620–700+
DTI Ratio	Flexible (41%+ OK with residual income)	43–50%	43–45%
Funding / Insurance Fee	1.25–3.3% (one-time, waived w/ disability)	1.75% upfront + 0.55%/yr	None (but PMI applies)
Loan Limits	No limit (with full entitlement)	$498,257–$1,149,825	$766,550 (conforming)
Assumable	Yes ✓	Yes ✓	No
Property Condition	Must meet VA MPRs	Must meet FHA standards	More flexible
Eligible Borrowers	Veterans, Active Duty, Qualifying Spouses	Anyone	Anyone