Full entitlement
There is no VA county loan cap with full entitlement. Your lender still sets an affordable loan amount based on income, debts, credit, and the property’s value. “No VA limit” does not mean unlimited borrowing or automatic approval.
First-time homebuyer guide
Home Financing, Step by Step
Never applied for a mortgage? Start here. Learn what lenders review, how conventional, FHA, and VA loans differ, and what happens between your first conversation and closing.
From planning to keys
The basic mortgage process
Set a comfortable budget
Start with what you can afford each month, rather than the largest loan offered. Include taxes, homeowners insurance, any mortgage insurance, HOA or condo dues, utilities, repairs, and savings. In Hampton Roads, check flood insurance needs and costs for the specific property early.
Gather your paperwork and speak with lenders
Expect requests for identification, recent pay stubs, W-2s, bank statements, employment history, and debt information. Tax returns or additional records may be needed for self-employment or other income. Upload sensitive documents through the lender’s secure system. Ask which loan programs you qualify for.
Get pre-approved before making an offer
A lender reviews your finances and may issue a conditional pre-approval letter. Ask what has actually been verified and when the letter expires. Pre-approval is not final loan approval; the property and your finances must still pass the lender’s review.
Choose a home and compare loan offers
Once you have a property in mind, request Loan Estimates using the same loan type, down payment, and term. For most purchase mortgages, the lender must provide one within three business days of receiving the six required application details, including the property address. Compare costs and tell your chosen lender you want to proceed.
Complete the property and loan review
The lender usually orders an appraisal to evaluate the home’s value. Your home inspection is a separate condition review. The underwriter checks your credit, income, debts, funds, and the property; “conditional approval” means more items are needed. Arrange insurance, discuss your rate lock, and answer document requests promptly.
Review, close, and start repayment
For most purchase mortgages, you must receive the Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and resolve questions. Confirm the final cash to close, sign the documents, and follow settlement instructions. Ask who will service the loan and when your first payment is due.
These steps overlap. Your contract sets deadlines; appraisal issues, required repairs, missing documents, or changes in your finances can affect closing.
Three common choices
Conventional vs. FHA vs. VA
Private lenders make these loans. FHA insures eligible loans and VA guarantees eligible loans; conventional loans are outside those government programs. Ask for personalized quotes instead of assuming one program is always cheapest.
| What to compare | Conventional | FHA | VA |
|---|---|---|---|
| Who can use it? | Qualified borrowers meeting the program and lender’s rules. | Qualified borrowers; not limited to first-time buyers. Often worth comparing when credit is less established. | Eligible veterans, service members, and certain surviving spouses with a Certificate of Eligibility (COE). |
| Down payment | Some programs allow 3% down for eligible buyers; others require more. | As low as 3.5% when eligible. Credit and lender requirements may mean a larger down payment. | Often no down payment with sufficient entitlement and supporting appraisal. Zero down does not mean zero closing costs. |
| Mortgage insurance / fees | PMI is generally required with less than 20% down. Cancellation may be available when requirements are met. | Usually upfront mortgage insurance plus annual premiums paid monthly. For typical new FHA loans, annual premiums last 11 years with at least 10% down, or the loan term with less than 10% down. | No monthly mortgage insurance. A one-time funding fee usually applies unless exempt; it can generally be financed, increasing the balance and interest cost. |
| What changes in the process? | Lender checks income, credit, funds, and property eligibility. Special low-down-payment programs may add education or eligibility requirements. | FHA case processing and an FHA appraisal include minimum property standards. Flagged conditions may require repairs before closing. | Lender verifies the COE and entitlement, reviews residual income (money left after specified expenses), and orders a VA appraisal that considers minimum property requirements. |
| What about the home? | Property condition and project eligibility still matter; conventional financing does not automatically accept every property. | Standard FHA purchase financing generally requires a primary residence. Condo/project eligibility may need extra review. | The new purchase must meet VA occupancy rules. A VA purchase loan is not a way to buy a purely investment property. |
All three involve underwriting, property review, and closing documents. FHA and VA appraisals do not replace a home inspection. No loan type guarantees approval or a faster closing.
LEVERAGE REALTY TEAMPowered by Howard Hanna · Great Bridge Office
Know your options at the closing table
Seller Concession Cheat Sheet
A quick guide to seller help with eligible buyer costs.
A seller credit is negotiated help toward allowed costs—not automatic cash back. The maximum depends on the loan, occupancy, and financing structure.
On a phone, swipe across the table to see all columns.
| Loan type | Property use | Down payment / financing | Eligible contribution | Maximum |
|---|---|---|---|---|
| Conventional | Primary or second home | Less than 10% down*LTV/CLTV above 90% | Allowed closing costs, prepaid items, and discount points / buydowns | 3% |
| Conventional | Primary or second home | 10% to less than 25% down*LTV/CLTV 75.01%–90% | Allowed closing costs, prepaid items, and discount points / buydowns | 6% |
| Conventional | Primary or second home | 25% or more down*LTV/CLTV 75% or less | Allowed closing costs, prepaid items, and discount points / buydowns | 9% |
| Conventional | Investment property | All eligible LTV/CLTV ratiosRequired down payment varies by program and property | Allowed closing costs, prepaid items, and discount points / buydowns | 2% |
| FHA | Primary residence | As low as 3.5% when eligible | Allowed closing costs, prepaid items, discount points, and approved buydowns | 6%of sales price |
| VANormal closing costs | Primary residence | Often 0% with sufficient entitlement and qualifying value | Buyer’s normal closing costs and market-appropriate discount points | Outside the 4% capActual allowable costs; lender review applies |
| VASpecial concessions | Primary residence | Same VA eligibility and entitlement rules | Funding fee, prepaid taxes/insurance, temporary buydown funds, extra discount points, and eligible debt payoff | 4%of VA-established reasonable value |
| USDAGuaranteed loan | Primary residence | Generally no down payment for eligible borrowers and properties | Allowed closing costs, prepaid items, and discount points | 6%of sales price |
*Conventional calculation: These are standard Fannie Mae limits, based on the lower of sales price or appraised value. Down-payment ranges are shorthand: the lender uses loan-to-value (LTV) or combined loan-to-value (CLTV), including applicable second financing. Jumbo and other programs may differ.
VA distinction: The 4% rule applies to special concessions, not all seller-paid costs combined. There is no universal “two discount points” cutoff; market-appropriate points are excluded, while extra points count toward the cap.
Before you negotiate: Have your lender confirm eligible costs, the percentage basis, and any stricter rules. Credits generally cannot replace the required down payment or become extra cash back. Unused credits may be lost or require a contract adjustment. Customary seller-paid fees and buyer-agent compensation may receive separate treatment.
What does 3% look like?
At a $400,000 qualifying value, a 3% ceiling is $12,000. If only $8,000 of eligible costs can be covered, the buyer does not automatically receive the unused $4,000.
Official references: Fannie Mae · FHA Handbook · VA Handbook, Chapter 8 · USDA Handbook, Chapter 6
Helping you leverage every move.
A reusable military benefit
You can use a VA loan more than once—and may have more than one at a time
Already used your VA benefit? You may still be eligible.
You can request restoration after selling the prior home and paying its VA loan in full. A one-time restoration may also be available after paying off the prior VA loan while keeping the home. A qualifying veteran’s assumption with substitution of entitlement is another possible route.
You may keep an existing VA loan and use remaining entitlement for another home—for example, during a PCS move—if you qualify. The new home must meet occupancy rules. Your lender evaluates both obligations and any proposed rental income under program rules.
Remaining entitlement
If entitlement is tied to a prior loan or has not been restored, the new property’s current FHFA one-unit county limit helps determine the guaranty available. That affects how much you can borrow without a down payment; it is not necessarily a maximum purchase price.
How the remaining-entitlement calculation works
For a typical purchase above $144,000: take 25% of the new property’s county limit, subtract entitlement already charged on your COE, then multiply the remaining amount by four to estimate a no-down-payment ceiling. This uses entitlement charged, not simply today’s balance on your old mortgage.
Illustration only—not a current Hampton Roads limit
If the county limit were $800,000 and your COE showed $75,000 already charged: $200,000 − $75,000 = $125,000 remaining guaranty. Multiplying by four gives a $500,000 illustrative no-down-payment amount. Above that, a down payment may be needed. Have your lender calculate the exact amount.
County limits change annually. Ask your lender to check the current limit, COE, entitlement, appraisal, and funding-fee treatment before writing an offer. Some eligible borrowers, including those receiving qualifying service-connected disability compensation, are exempt from the funding fee.
Visit the Official VA Home Loans Website ↗
Official guidance: VA entitlement and limits · Reusing VA entitlement · Funding fees and exemptions
Your first mortgage
10 questions first-time buyers ask
1. “I’ve never borrowed for a home. What is a mortgage?”
It is a loan used to buy a home, secured by the property. Your payment repays principal (the amount borrowed) and interest (the cost of borrowing). If you do not make required payments, the lender may foreclose. Read the loan terms before signing.
2. “Do I need 20% down or perfect credit?”
Not necessarily. Eligible conventional buyers may qualify with 3% down, FHA buyers with 3.5%, and eligible VA buyers with no down payment. Qualification depends on the program and lender. Ask for a review of your specific credit, income, debts, and savings rather than guessing from a score alone.
3. “Is pre-qualification the same as pre-approval?”
Lenders use these terms differently. A preliminary estimate may rely on information you provide; a more detailed review may check credit and documents. Ask what was verified. Either letter can have conditions and does not promise the final loan.
4. “What paperwork should I have ready?”
Gather recent income records, W-2s, bank statements, identification, and employment and debt information. Self-employed buyers may need tax returns and business records. VA buyers may need service documents for the COE. Keep every page of statements and be ready to explain deposits and gifts.
5. “The lender says I qualify. Is that payment my whole budget?”
No. Ask for the full payment with principal, interest, taxes, homeowners insurance, and any mortgage insurance. HOA dues, utilities, maintenance, and flood insurance may be additional. Taxes and insurance can change even with a fixed-rate loan. Choose a payment that leaves room for everyday life.
6. “How much cash do I bring to closing?”
Your down payment is only one part. Closing costs, prepaid items, and initial escrow funds also matter; deposits already paid and approved credits reduce what remains. On a $300,000 purchase, 3% is $9,000 and 3.5% is $10,500 for the down payment alone. Ask for a written cash-to-close estimate.
7. “What are interest rate, APR, points, and a rate lock?”
The rate sets interest charges; APR reflects interest plus certain loan costs. Discount points pay upfront for a lower rate; one point equals 1% of the loan amount. Lender credits often trade a higher rate for lower upfront costs. A rate lock has a deadline and conditions—ask about expiration and extension costs.
8. “Why do I need an appraisal if I paid for an inspection?”
The appraisal helps the lender evaluate value and loan-program property requirements. The inspection helps you understand condition and potential repairs. A low appraisal or required repairs may affect financing; your options depend on the contract and loan rules. Discuss both with your agent and lender.
9. “What could delay approval after I’m under contract?”
Missing paperwork, unexplained deposits, new debt, a job or income change, appraisal issues, or property repairs can trigger more review. Talk with your lender before opening credit, financing furniture or a car, changing jobs, or moving large sums. Keep payments current and respond promptly.
10. “How do I know I’m ready to close?”
Get confirmation from your lender that approval conditions are satisfied, review the Closing Disclosure, and confirm insurance and final funds with the settlement provider. Independently verify wiring instructions by calling a known, trusted number. Ask about your first payment and loan servicer. Keep copies of your signed documents.
A few smart first steps
Compare the full cost
Request comparable quotes from several lenders. Check the monthly payment, mortgage insurance, cash needed, fees, and loan term. A 15-year loan generally has higher payments but a shorter payoff; an adjustable-rate loan can change after its initial period.
Ask about Virginia assistance
Virginia Housing offers homebuyer education and assistance options for qualified buyers. Availability and eligibility vary by program. Ask about income and price limits, education, occupancy rules, and whether assistance is a grant or a repayable second loan.
Explore Virginia Housing ↗Learn more from official sources
Reviewed October 5, 2026. Confirm current terms and eligibility with your lender; this guide is general education, not a loan offer or approval.