VA loans in Georgia: eligibility, no down payment and the funding fee
For eligible service members, veterans and surviving spouses, the VA loan is usually the best mortgage in the market. Here is how to use it well.
What a VA loan is
A VA loan is a mortgage from a private lender, partly guaranteed by the U.S. Department of Veterans Affairs. The guarantee lets lenders offer terms no other loan matches: no down payment for eligible borrowers, no monthly mortgage insurance, and limits on the closing costs a veteran can be charged.
Georgia has a large military and veteran population — Fort Moore, Fort Stewart, Robins and Moody Air Force Bases, Kings Bay, Dobbins — and plenty of metro Atlanta buyers are eligible without realising it.
Who is eligible
Eligibility depends on length and type of service: active-duty members, veterans, National Guard and Reserve members who meet service requirements, and some surviving spouses. You prove it with a Certificate of Eligibility (COE), which most lenders can request online in minutes, or which you can get through the VA's home loan site.
The home must be your primary residence. The VA also sets credit and income standards, and lenders add their own — including a residual-income test that checks how much money is left each month for living expenses after the mortgage and debts.
The benefits
- No down payment for eligible borrowers with full entitlement.
- No monthly mortgage insurance, at any down payment.
- Limits on what the veteran can be charged at closing, and sellers may pay some or all of the buyer's closing costs.
- Competitive rates, because of the government guarantee.
- Assumable — a future buyer can take over your loan, with servicer approval.
- Reusable — the benefit can be used again, and in some cases more than one VA loan can be held at once.
The funding fee
Most VA borrowers pay a one-time funding fee, which can be paid at closing or rolled into the loan. The VA sets the percentage, which varies with whether it is your first use, your down payment and your service, and it has changed over time — your lender will quote the current figure.
Veterans receiving VA disability compensation, and some others, are exempt from the funding fee. If that might be you, make sure your COE reflects it before closing — it can save thousands.
The VA appraisal and the house
VA appraisals check value and the VA's minimum property requirements: the home must be safe, sound and sanitary. Problems such as a failing roof, missing handrails, peeling paint on older homes or wood-destroying insect damage generally have to be fixed before closing.
In Georgia, VA loans typically require a wood infestation report — see termite inspections in Georgia. The VA appraisal is not a home inspection; get a full inspection in your due diligence period.
VA loans and competitive offers
Some sellers worry that VA appraisals are stricter or slower. Counter it by being specific: a fully underwritten pre-approval, a lender who closes VA loans regularly, a clean offer and a reasonable timeline. If you are asking the seller to pay closing costs, your agent can structure it so the net to the seller stays competitive.
Assuming someone else's VA loan
Anyone the servicer approves can assume a VA loan — you do not need to be a veteran. But if a non-veteran assumes it, the seller's entitlement stays tied up in that loan until it is paid off, which can limit their next VA purchase. When an eligible veteran assumes it, they can substitute their own entitlement and free the seller's. That is why some VA sellers prefer veteran buyers. Assumable mortgages explained covers the full process, and you can browse homes with assumable VA loans.
A VA purchase, step by step
- Get your Certificate of Eligibility — your lender can usually pull it online. Check that any funding fee exemption shows on it.
- Get pre-approved with a lender who closes VA loans regularly; ask how many they closed in Georgia last year.
- Shop homes that will pass the VA's minimum property requirements, and check VA approval for any condo project.
- Write the offer. If you want the seller to cover closing costs, say so in the offer rather than asking later.
- Inside your due diligence period, get the home inspection and the wood infestation report, and get insurance quotes.
- The lender orders the VA appraisal. If it comes in below the price, the VA's escape clause lets you walk away without losing earnest money, or you can renegotiate or pay the difference in cash.
- Clear the appraiser's required repairs, finish underwriting and close with your Georgia closing attorney.
Questions to ask a VA lender
- What is my funding fee, and does my COE show an exemption?
- Do you have credit score or debt-to-income overlays beyond the VA's guidelines?
- How are you calculating my residual income?
- If I have used my entitlement before, how much can I borrow with no down payment?
Common questions
Do I need a down payment for a VA loan?
Not if you have full entitlement and the price does not exceed the appraised value. A down payment can lower the funding fee and the loan amount.
Is there a VA loan limit in Georgia?
Borrowers with full entitlement are not subject to a VA loan limit for the guarantee. Borrowers with partially used entitlement are, and lenders apply their own maximums. Ask your lender how your entitlement works.
Can a surviving spouse get a VA loan?
Some surviving spouses are eligible, depending on the circumstances of the service member's death or disability. Eligibility is confirmed through the Certificate of Eligibility.
Can I use a VA loan for a condo or new construction?
Yes. Condos generally need to be in a VA-approved project, and new construction usually needs the builder to meet VA requirements. Check before you contract.
Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, among others. The exemption should show on your Certificate of Eligibility.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.