VA Loans — Nothing Down, No Monthly PMI

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What Are VA Loans?

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs and issued by private lenders like Mortgage-World.com. They’re built for eligible veterans, active-duty service members, National Guard and Reserve members who meet the service requirement, and certain surviving spouses. The headline benefits are simple: no down payment on most purchases, no monthly private mortgage insurance regardless of how little you put down, and a one-time VA funding fee instead of ongoing PMI. We can work with a credit score as low as 500, sellers are allowed to pay all of your closing costs, and there’s no maximum loan amount cap for VA financing in most of the country as long as you qualify for the payment. This benefit isn’t a one-time-use program either — you can use a VA loan again and again over your lifetime as long as you have entitlement remaining.

Figures are illustrative as of July 2026, not a quote or commitment to lend. Actual terms depend on your credit profile, entitlement, and the property you’re financing. Call 888.958.5382 or apply online for your real numbers.

The VA doesn’t lend the money and doesn’t set your rate. It guarantees a portion of the loan to the lender, which is exactly why we can offer the terms we do — the government’s guarantee lowers the lender’s risk, and that savings gets passed straight to you as a veteran.

How It Works

How A VA Loan Actually Works

Every VA loan starts with your Certificate of Eligibility, or COE, which confirms to us and the VA that you’ve met the service requirement for the program. We can usually pull this for you directly rather than sending you off to track it down yourself. From there, VA financing works like most other mortgages on the surface — you get pre-approved, find a property, lock a rate, and go through underwriting — but the underlying guidelines are noticeably more forgiving than what you’d see on a conventional loan.

The biggest difference shows up at the down payment line. Most VA purchases close with nothing down, and because the VA guarantees a portion of the loan on your behalf, you never pay monthly private mortgage insurance, no matter how little equity you’re starting with. In place of PMI, VA loans charge a one-time funding fee, which is calculated as a percentage of the loan amount and depends on your down payment and whether it’s your first time using the benefit. That fee can be paid in cash at closing or rolled into your loan balance, and it’s waived entirely for veterans receiving VA disability compensation and for certain surviving spouses.

VA appraisals also carry an extra layer of protection called the Minimum Property Requirements, which check that the home is safe, sound, and sanitary before your loan can close. This isn’t there to slow you down; it’s there to protect you from buying a property with hidden problems. We walk every client through what the appraiser will be looking at before an offer even goes in, so there aren’t surprises later in the file.

What you’ll need to get started is your COE, your two most recent pay stubs or a retirement/pension statement, your last two years of W-2s, and two months of bank statements. If you’re self-employed, we’ll ask for two years of tax returns instead. Because VA underwriting also looks at residual income — how much money you have left over each month after your major debts — rather than just a debt-to-income ratio, borrowers who wouldn’t qualify for a conventional loan often qualify comfortably for VA financing.