$0 Down. No PMI. You Earned It.

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active duty service members, National Guard and Reserve members, and surviving spouses. The VA guarantee allows lenders to offer $0 down payment, no PMI, and competitive rates that aren't available on any other mainstream mortgage program. Eligibility is based on your service history — the key requirements are 90 days of wartime service, 181 days of peacetime service, or 6 years of National Guard/Reserve service under qualifying conditions.

Yes — eligible borrowers with full VA entitlement can purchase a home with absolutely zero down payment, regardless of the purchase price. Full entitlement applies to first-time VA loan users and veterans who have paid off prior VA loans and restored their entitlement. Since the Blue Water Navy Vietnam Veterans Act of 2019 eliminated loan limits for full entitlement borrowers, there is no cap on how much you can borrow with zero down — you simply need to qualify on income and credit.

The VA funding fee is a one-time fee paid to the Department of Veterans Affairs — not the lender — that helps keep the VA loan program self-sustaining. For first-time use with zero down, the fee is 2.15% of the loan amount. For subsequent use it's 3.3%. The fee can be rolled into your loan so you pay nothing out of pocket at closing. Importantly, the funding fee is completely waived for any veteran with a service-connected disability rating (at any percentage), Purple Heart recipients, and eligible surviving spouses receiving DIC. If your disability claim is pending at closing, you pay the fee upfront and receive a full refund when your rating is approved — even retroactively.

The differences are significant. VA loans require no down payment and no PMI — ever — while conventional loans require at least 3–5% down and PMI until you reach 20% equity. VA rates are typically lower than conventional rates. VA has no official minimum credit score while conventional requires 620 minimum. The main tradeoffs are that VA is limited to primary residences only (conventional works for investment properties and second homes), and VA requires a funding fee that conventional doesn't have. For any eligible veteran, VA is almost always the better financial choice.

Yes — your VA benefit never expires and can be used multiple times. Once you sell a home financed with a VA loan and pay it off, your entitlement is fully restored and you can use the benefit again on your next purchase. You can even have two VA loans simultaneously in some cases — for example, if you're relocating due to PCS orders and need to purchase a new home before selling the old one. The funding fee increases to 3.3% on subsequent uses (unless you're exempt due to a disability rating).

Yes, with specific requirements. National Guard and Reserve members qualify with either six years of selected reserve service, or 90 days of active duty service under Title 10 federal orders (not Title 32 state emergency orders). This is an important distinction — many Guard and Reserve members are surprised to find that state emergency activations don't establish VA loan eligibility. Before assuming you qualify, confirm whether your activation orders were Title 10 federal orders. Call Pete and his team at (530) 221-7700 and we'll verify your eligibility quickly.

VA requires homes to be safe, sound, and sanitary. The VA appraiser will flag issues like missing handrails, exposed wiring, roof damage, evidence of water intrusion, non-functional utilities, and peeling paint on pre-1978 homes. Most move-in-ready homes in Redding pass VA MPR review without any issues. Where VA can run into trouble is with severely distressed properties, foreclosures with deferred maintenance, or homes with significant structural issues. If you're eyeing a property that might have condition issues, call Pete before making an offer — he can give you a realistic assessment of whether it's likely to pass VA appraisal.

For veterans with full entitlement — which includes all first-time VA loan users and those who have fully restored their entitlement — there is no VA loan limit. You can borrow any amount with zero down as long as you qualify on income and credit. For veterans with partial entitlement (those with an active VA loan on another property, or who had a prior VA foreclosure without repaying the VA), the limit in Shasta County follows the 2025 conforming loan limit of $806,500. If you're in a partial entitlement situation, a down payment formula applies for purchases above that limit.