A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and certain surviving spouses. It offers 100% financing, no private mortgage insurance, and competitive interest rates—making it one of the most powerful home loan programs available in the U.S., including in areas around Lake Marion, South Carolina.
What Is a VA Loan?
The VA loan program was created in 1944 as part of the GI Bill, offering returning service members a chance to buy a home with favorable terms. Today, the VA loan continues to serve those who have served our country by removing many of the financial barriers to homeownership.
Key Features:
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit and income requirements
- Can be used to buy, build, or refinance a home
This makes the VA loan one of the most accessible and cost-effective mortgage options for eligible military families.
Who Qualifies for a VA Loan?
To qualify for a VA loan, you must meet service requirements defined by the U.S. Department of Veterans Affairs. Your eligibility is based on your military service, duty status, and length of service.
Basic Eligibility:
- Veterans with 90+ days of active duty during wartime OR 181+ days during peacetime
- Active-duty service members with at least 90 continuous days of service
- National Guard or Reserve members with 6 years of service or 90 days under Title 32 (with 30 days consecutive)
- Surviving spouses of veterans who died in service or from service-related injuries
How to Prove Eligibility:
You’ll need a Certificate of Eligibility (COE) from the VA. This document confirms you qualify for the benefit and can be requested by:
- Applying online through the VA.gov portal
- Asking your lender to retrieve it for you
- Submitting a VA Form 26-1880
Carolina Properties at Lake Marion can help you get started if you’re unsure how to access your COE.
How Does a VA Loan Work?
The VA doesn’t lend money directly—it guarantees a portion of the loan, which protects lenders in case of default. This makes lenders more willing to approve loans with better terms and fewer requirements than conventional loans.
Key Mechanics:
- Issued by private lenders (banks, credit unions, mortgage companies)
- VA guarantees up to 25% of the loan amount
- No down payment required (as long as the purchase price doesn’t exceed the appraised value)
- One-time VA Funding Fee applies (can be financed into the loan)
The VA Funding Fee—What It Is and How Much You’ll Pay
Instead of monthly mortgage insurance, VA loans require a one-time funding fee to help sustain the program.
VA Funding Fee (2025 Guidelines):
- First-time use with 0% down: 2.15% of loan amount
- Repeat use with 0% down: 3.3%
- With 5% down: 1.5%
- With 10% down: 1.25%
Exemptions:
- Veterans receiving VA disability compensation
- Surviving spouses of veterans who died in service or from service-connected conditions
This fee can be financed into your loan, so you don’t have to pay it out of pocket at closing.
VA Loan Requirements—Credit, Income, and Property
While the VA loan is flexible, lenders will still evaluate your creditworthiness and financial stability.
Credit Score:
- VA sets no official minimum, but most lenders require a credit score of 620 or higher
- Some lenders will go lower with strong compensating factors
Debt-to-Income Ratio (DTI):
- Ideally below 41%, though higher ratios may be allowed if you have solid residual income
Income Requirements:
- Stable, verifiable income
- 2 years of employment or service history
- Residual income standards (based on region and family size)
Property Guidelines:
- Must be a primary residence
- Must meet VA appraisal standards
- Move-in ready homes only (VA loans don’t cover fixer-uppers unless using a VA renovation loan)
What Kind of Homes Can You Buy with a VA Loan?
VA loans are flexible when it comes to property type—perfect for buyers in the Lake Marion area, where options range from traditional homes to lakefront retreats.
Allowed Property Types:
- Single-family homes
- Townhomes
- Condos (must be VA-approved)
- Modular homes
- Manufactured homes (must be on permanent foundations)
- New construction (requires a VA-approved builder and extra inspections)
Pro Tip: Many homes near Lake Marion meet VA requirements, and Carolina Properties can help you identify eligible listings quickly.
VA Loan Process (Step-by-Step)
Step-by-Step VA Loan Timeline:
- Get your Certificate of Eligibility (COE)
- Get preapproved by a VA lender
- Shop for a home with your real estate agent
- Make an offer and get a VA appraisal
- Underwriting review and loan approval
Close and move into your new home
This process typically takes 30–45 days but may vary based on lender speed and appraisal timelines.
VA Loan Benefits vs. Other Loan Types
Feature | VA Loan | ||
Down Payment | 0% | 3.5% | 3–20% |
PMI/MIP | None | Yes | Yes (if <20% down) |
Credit Score Needed | ~620+ | ~580+ | ~620–680+ |
Property Use | Primary only | Primary only | Primary, secondary, rental |
Appraisal Standard | Strict | Moderate | Varies by lender |
Conclusion: VA loans offer the most value for eligible buyers, especially those without large savings for a down payment.
FAQ: VA Loan Questions Answered
Q: Can I use a VA loan more than once?
A: Yes—there’s no limit to how many times you can use a VA loan if you have remaining entitlement or restore it between uses.
Q: Can I use a VA loan to buy a second home?
A: No. VA loans are for primary residences only.
Q: Can I refinance with a VA loan?
A: Yes—through the VA IRRRL (Interest Rate Reduction Refinance Loan) or cash-out refinance options.
Q: Do I have to pay the VA funding fee again for future purchases?
A: Usually, yes—but the rate may vary. If you’re exempt due to a service-connected disability, you’re exempt every time.
Q: Can I build a home with a VA loan?
A: Yes—but it requires a VA-approved builder and more documentation. Carolina Properties can help coordinate your build if you go this route.
Final Thoughts: VA Loans Make Lake Marion Living More Accessible
If you’ve served this country, the VA loan program is a well-earned benefit that can open the door to affordable homeownership—whether you’re buying your first home, moving to South Carolina, or looking to settle down near Lake Marion.
At Carolina Properties at Lake Marion, we work closely with veterans, active-duty families, and lenders who understand the VA process. From getting your COE to finding VA-eligible homes, we’ll help you every step of the way.
Contact us today to take full advantage of your VA loan benefit and start your journey to homeownership in the Lake Marion area.