- VA loans offer first-time homebuyers a major advantage with a $0 down payment, no private mortgage insurance (PMI) and flexible credit requirements.
- Getting preapproved early helps you set your budget and make a stronger offer.
- Working with a VA-experienced lender and real estate agent can help you avoid mistakes and buy with confidence.
Purchasing Your First Home
Buying your first home is a big milestone, and it can feel a little overwhelming. That’s why our team’s here 24/7 to help guide you and answer any questions along the way. Give us a call anytime, toll-free at 1-800-884-5560 or start your VA Loan online.
How Much Home Can I Afford?
Typically, the first question many first-time homebuyers ask is, "What can I afford?"
Your ideal mortgage payment depends on a few things, like your income, existing debt and ideal down payment amount. Even costs like homeowners insurance or HOA fees should be factored into your overall budget.
First-time homebuyers should know that VA lenders also evaluate residual income to ensure you have enough money left over each month after expenses.
Veterans United’s VA loan payment calculator makes it easy to estimate a monthly payment that fits your budget.
What Type of Home Loan Should I Get?
There are many financing options available for first-time homebuyers out there, each with their own unique advantages. For most Veteran and active duty military members, Veterans United highly recommends the federally backed VA loan due to its distinct benefits over traditional loans.
Advantages of a VA Loan
-
No Down Payment Necessary
You’ll usually need at least a 5% down payment for conventional loans or a 3.5% down payment for FHA financing. On a $200,000 loan, that's $10,000 for conventional borrowers and $7,000 for FHA. For many first-time homebuyers, coming up with that kind of cash can be challenging. Being able to purchase a home with 0% down means VA borrowers don't have to spend years saving to scrape together a big down payment.
-
Less Stringent Qualifications
Many first-time homebuyers might not have a strong credit history, which can make it difficult to get approval for a mortgage or qualify for an affordable interest rate. Since the VA loan is government-backed, lenders may be more flexible with credit and income requirements. Even if your credit isn’t perfect, it could be easier to qualify for than a conventional mortgage.
-
Lower Monthly Payments
Since VA loans don't require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month. The competitive VA loan rates can also save you thousands over the life
Have questions? Connect with a trusted VA-lending specialist
In addition to the VA loan, Veterans United Home Loans offers several other financing options for homebuyers, including USDA loans, FHA loans and traditional conventional loans when they’re a better fit for the homebuyer.
-
“VA loans offer distinct advantages for first-time homebuyers who don't have funds for a large down payment. Unlike conventional loans, VA loans require no monthly mortgage insurance and typically carry lower funding fees for first-time users, both of which can meaningfully expand a Veteran's purchasing power. Because the VA home loan benefit is a lifetime benefit, Veterans don't need to rush or time when they use it.”
Rett ThompsonAssociate Director of Production - NMLS #1747762Rett is an Associate Director of Production at Veterans United, where he draws on 17 years of combined experience in mortgage lending and insurance to help Veterans confidently navigate the home loan process.
Why First-Time Military Homebuyers Choose the VA Loan
Buying your first home after military service can feel like unfamiliar territory. That’s why so many first-time military homebuyers turn to the VA loan. It’s not just about competitive interest rates and no down payment. It’s about having a home loan option designed to support and understand the unique needs of military homebuyers throughout the process.
I would use the VA loan for every home. Part of the reason why is that feeling that someone has your back. After getting out of the military, sometimes Veterans feel like no one really understands what being in the military is like or that anyone will truly support you, and I know I’ve felt this way. But with the VA home loan, it really felt like I wasn’t out here doing it alone.
The VA loan isn't just a benefit you've earned; it's a trusted path that can make the entire journey feel more manageable and less overwhelming.
Steps to Get a VA Loan as a First-Time Homebuyer
Buying your first home is a huge achievement, and the VA loan is built to support you every step of the way. Here’s how the VA loan process works for first-time homebuyers from start to finish.
1. Start With VA Prequalification
Prequalification is your low-pressure starting point. It’s a short conversation or online form where a lender learns about your service history, credit picture, income and homebuying goals. Typically, no documents are required at this time.
For first-time homebuyers, VA loan prequalification helps you:
- Understand your estimated price range before you start shopping
- Spot potential credit or debt issues early
- Get clarity on what the VA loan can do for you as a first-time buyer
This step is fast, free and gives you a strong foundation to build on.
2. Get Preapproved
The next step toward securing your loan is getting preapproved. Unlike prequalification, which relies on the information you share in conversation, preapproval verifies everything with documentation such as pay stubs or bank statements.
Your lender will pull your credit (with permission), confirm your income and employment, review your assets and obtain your Certificate of Eligibility (COE). They’ll also calculate your debt-to-income (DTI) ratio and required residual income. If you have a co-borrower or spouse on the loan, their information may be considered as well.
VA lenders evaluate income differently and may be more flexible with credit standards compared to conventional loans, while still ensuring borrowers can comfortably afford the mortgage.
For first-time homebuyers, VA loan preapproval is especially valuable because it:
- Helps you understand how 0% down affects your monthly payment and overall affordability
- Gives you a precise price range based on verified numbers
- Identifies any issues early, such as credit score, debt levels or missing documentation
- Makes your offer stronger and more competitive when sellers compare multiple buyers
Once approved, you’ll receive a preapproval letter, which acts like your financial passport throughout the home search. It signals to agents and sellers that you’re a serious buyer with a VA-backed lender standing behind you.
Veterans United offers two ways to begin this process: You may either call us directly at 1-800-884-5560 or answer a few questions below to start your preapproval online.
Answer a few questions below to speak with a specialist about what your military service has earned you.
3. Find a Real Estate Agent
As a first-time homebuyer, the right real estate agent can make the entire process smoother. VA loans have unique guidelines, timelines and protections, so it helps to work with an agent who understands the intricacies of the VA Benefit Program and the specific needs of Veterans and active-duty military members.
An agent with VA expertise can help you:
- Spot potential issues early before the VA appraisal
- Navigate offer strategies that align with VA timelines and requirements
- Avoid common mistakes that slow down or complicate a VA purchase
Veterans United maintains an affiliate network of agents nationwide who understand the VA loan process and are experienced in supporting VA homebuyers at every step.
4. Find the Right Home and Make an Offer
Once you're preapproved, you can start touring homes that match your needs, budget and VA guidelines. Your agent will help you compare neighborhoods, features and property, all while keeping your monthly mortgage payment and long-term goals in mind.
When you’re ready to move forward on a home, your agent will help you craft a strong offer. A solid VA preapproval letter and offer often reassures sellers that you’re a qualified, reliable buyer.
5. Complete the VA Appraisal and Loan Underwriting
After your offer is accepted, your lender orders the VA appraisal. This step confirms the home is priced appropriately and meets the VA’s safety and livability standards.
If the property needs repairs to satisfy VA Minimum Property Requirements, your agent can work with the seller to get them addressed. This protection is especially helpful for first-time buyers, ensuring you don't step into unexpected structural or safety issues.
At the same time, your loan moves through underwriting, where your lender reviews the remaining documentation and prepares your file for final approval.
6. Close on Your VA Loan and Get Your Keys
After your loan is cleared to close, you’ll review your final numbers, sign the paperwork and officially become a homeowner. Most first-time VA buyers choose to finance the VA Funding Fee into the loan, unless exempt, which keeps upfront costs low.
Once the loan is finalized, you’ll receive your keys and can celebrate your first home purchase.
Helpful First-Time Homebuyer Resources
- The Guide to VA Homebuying
Browse our VA homebuyer education and resources page.
- VA Home Loan Affordability Calculator
This VA home loan calculator helps you understand how much you can afford to pay for a house based on your income, debts and more.
- First-Time Homebuyer Tips
This article discusses the top tips for first-time homebuyers to navigate the VA loan process with ease.
As a first-time homebuyer, you have many options when it comes to purchasing your home, including homes in high-cost areas. Learn about VA jumbo loans in our next section.
