The VA benefit is still the best deal in mortgage financing, if you use it right
No down payment. No private mortgage insurance. Competitive interest rates. Limits on what closing costs veterans can be charged. The VA loan benefit remains one of the most powerful financial tools available to those who've served, and it's underused, largely because veterans aren't always told how to use it strategically.
I'm an Air Force veteran. I've used the VA loan benefit myself, and I work with VA buyers in Charleston regularly. Here's what's current heading into 2026.
No more VA loan limits for most borrowers
Since the Blue Water Navy Vietnam Veterans Act passed in 2020, VA loan limits were effectively eliminated for veterans with full entitlement. This means you can borrow above the conforming loan limit without a down payment, as long as you qualify based on income and credit.
In the Charleston market, where prices in Mount Pleasant and on the peninsula regularly exceed $600,000–$800,000, this is a significant advantage. Conventional buyers at those price points need 20% down to avoid PMI. VA buyers can come in with zero down.
Entitlement check first: If you have an existing VA loan, your entitlement may be partially used. Pull your Certificate of Eligibility (COE) before assuming you have full entitlement for a new purchase. We do this at the start of every VA buyer relationship.
The funding fee in 2026
The VA funding fee is a one-time charge that helps sustain the loan program. For 2026, the fee is:
- First use, no down payment: 2.15% of the loan amount
- First use, 5–10% down: 1.5%
- First use, 10%+ down: 1.25%
- Subsequent use, no down payment: 3.3%
- Exempt: Veterans receiving VA disability compensation are exempt from the funding fee entirely
The fee can be rolled into the loan, which most borrowers do. But it's worth running the numbers, on a $500,000 purchase at first use with no down payment, the fee is $10,750 rolled in. If you're planning to stay in the home long-term, rolling it in makes sense. If you're likely to move in 3–5 years, sometimes putting a small amount down to lower the fee rate is worth considering.
VA appraisals: slower, stricter, but manageable
VA appraisals include Minimum Property Requirements (MPRs), the home must be safe, sound, and sanitary. Issues like peeling paint on pre-1978 homes, missing handrails, roof condition, and water intrusion can trigger required repairs before closing.
In a market with motivated sellers, this is usually workable. In a competitive multiple-offer situation, some sellers are hesitant about VA buyers because they've had bad experiences with poorly managed VA transactions. Strong representation changes this. I communicate with listing agents upfront, write clean offers, and have a track record that makes sellers comfortable.
Timeline note: VA appraisals in the Charleston market are currently taking 10–14 business days on average. Plan your contract timelines accordingly. Rushing a VA appraisal creates problems, build in the time.
What sellers can and can't charge VA buyers
VA guidelines limit certain closing costs that veterans can pay. Specifically, VA buyers cannot pay:
- Loan origination fees above 1%
- Attorney fees for lender's attorney
- Real estate commissions (already the norm post-NAR settlement)
- Broker fees charged to the buyer by the lender
These costs don't disappear, they shift to the seller or are structured differently. In negotiation, I account for this and structure offers to make the deal work for both sides without leaving the veteran exposed to costs they shouldn't be paying.
Choosing the right lender matters enormously
Not all lenders are equally experienced with VA loans. A lender who does one VA loan a month handles things differently than one who does twenty. In a competitive market, a clumsy VA transaction can cost you the house. I work with a short list of local lenders who specialize in VA financing and close on time. Ask me for a referral, I won't send you somewhere I wouldn't go myself.
My personal take
I've seen VA buyers lose homes because their agent didn't know how to position them. I've also seen VA buyers beat out conventional offers at the same price point because the representation was strong and the process was clean. The benefit is real. Use it well.