Veterans can choose among a VA purchase loan, a VA refinance (the IRRRL or a cash-out loan), and conventional financing. The strongest fit depends on three things: your remaining entitlement, the VA funding fee you owe or are exempt from, and a side-by-side comparison of real offers rather than advertised rates.
Duane Buziak built Free Mortgage Search by Duane Buziak so veterans can compare offers from a broker’s wholesale lender network instead of the single shelf of one lender. The comparison runs on NoTouch Credit Pull, a soft pull, so shopping does not trigger a hard inquiry. The seven strategies below follow the order most veterans actually face: confirm eligibility, choose a loan type, cut fees, test the math, and line up competing offers.
1. Confirm Your Eligibility and Entitlement Before You Shop
Two documents shape everything else. The Certificate of Eligibility (COE) proves you qualify for a VA loan. Entitlement is the amount of your benefit available to back a new loan, and it sets how much you can borrow with no down payment.
Consider an illustration. A veteran still holds an active VA loan on a prior home and keeps it as a rental. Suppose $60,000 of entitlement remains. On a $400,000 purchase, the lender looks for the VA guaranty plus any down payment to cover 25% of the price, or $100,000. With $60,000 of entitlement available, the veteran would need roughly $40,000 down. Full-entitlement borrowers in the same position would need nothing. These figures are illustrative, and your lender calculates the real ones from your county’s limit and your loan history.
- Request your COE through the VA home loans pages on VA.gov, or ask your broker to pull it for you.
- Gather your discharge papers (DD-214) or, for active duty, a statement of service.
- List every prior VA loan, including whether the property was sold and the loan paid off.
- Ask your loan officer to calculate remaining entitlement and put the number in writing.
The common mistake is taking full entitlement for granted after a prior VA loan, then learning mid-contract that a larger down payment is required. A COE also does not guarantee approval. It confirms eligibility, while income, credit, and the property still have to qualify.
Measure this step by two items in hand before you make an offer: the COE, and a written entitlement figure.
2. Use a VA Purchase Loan When Keeping Cash in Hand Matters
A VA purchase loan lets eligible borrowers buy with no down payment and no monthly mortgage insurance. Full-entitlement borrowers also face no VA loan limit, though your income and the lender’s overlays still cap what you can borrow. The savings you keep are the point: cash that would have gone to a down payment stays available for moving costs, repairs, and reserves.
For comparison, the 2026 baseline conforming loan limit is $806,500, and up to $1,249,125 in high-cost areas, according to the Federal Housing Finance Agency. Those limits matter for conventional loans and for partial-entitlement VA borrowers, and they vary by county. Full-entitlement VA borrowers are not bound by them.
Illustration: a buyer has $25,000 in savings and a $400,000 target price. A 5% conventional down payment takes $20,000 of it, leaving almost nothing for a move and a first-month repair. A VA loan leaves the full $25,000 intact.
- Choose a property that meets VA minimum property requirements, since the appraisal checks safety, soundness, and sanitation.
- Obtain your COE.
- Request VA pricing alongside conventional options on the same day.
The common mistake is ignoring the financed funding fee when calculating the new loan balance. VA loans are not free: the fee is usually rolled into the loan, so a $400,000 price becomes a larger balance. Strategy 3 covers that fee in detail.
Measure cash to close and monthly payment under the VA scenario, then compare both against a down-payment scenario.
3. Reduce or Remove the VA Funding Fee
The funding fee is the largest single cost on many VA loans, and it is the one most open to reduction. As of 2026, first-use purchase fees step down as your down payment rises: 2.15% with less than 5% down, 1.5% with 5% to under 10%, and 1.25% with 10% or more. Subsequent use with less than 5% down is higher, at 3.3%. Confirm current tiers on the VA funding fee page, because they can change.
Some veterans owe nothing. Exemptions include those receiving VA disability compensation, Purple Heart recipients, and certain surviving spouses.
Illustration on a $400,000 purchase, first use:
- 0% down: fee of 2.15% on $400,000 is $8,600.
- 5% down: loan of $380,000 at 1.5% is $5,700, with $20,000 paid at closing.
- 10% down: loan of $360,000 at 1.25% is $4,500, with $40,000 paid at closing.
- Exempt veteran: $0.
Financing the $8,600 at an illustrative 6.25% over 30 years adds about $53 a month ($8,600 x 0.0061572). Whether that beats putting $20,000 down depends on what else that cash could do for you. Saving $2,900 in fees for $20,000 of down payment is a poor trade for many buyers.
The common mistake is missing an exemption because a disability claim was pending or the COE was never updated. If a rating decision arrives before closing, ask your loan officer to re-check the fee.
Measure the funding fee dollar amount and its effect on the monthly payment on each Loan Estimate, at 0%, 5%, and 10% down.
4. Compare VA Against Conventional With Real Numbers
A VA loan is not automatically cheaper than a conventional one. VA skips mortgage insurance but charges a funding fee, while conventional loans with under 20% down add private mortgage insurance (PMI) that can end once equity builds. Only a same-day, same-property comparison shows which is lower for you.
Worked illustration, $400,000 home, 30-year terms. Rates and the PMI figure are illustrative, so use your actual quotes.
| Item | VA, 0% down | Conventional, 5% down |
|---|---|---|
| Loan amount | $408,600 ($400,000 + $8,600 fee) | $380,000 |
| Illustrative rate | 6.25% | 6.50% |
| Principal and interest | about $2,516 | about $2,402 |
| PMI (illustrative 0.5% a year) | none | about $158 |
| Monthly total | about $2,516 | about $2,560 |
| Cash down at closing | $0 | $20,000 |
| Payments over 7 years (84 months) | about $211,300 | about $215,000 |
| Loan balance after 7 years | about $367,900 | about $343,600 |
Add it up at year seven: VA costs about $579,200 in payments plus remaining balance, conventional about $578,600 once the $20,000 down payment is included. The two are nearly even, even though VA looks cheaper every month. That is the lesson: a lower payment does not mean a lower total cost, and PMI that drops off earlier would tilt the result toward conventional. Run the 15-year mark on your real quotes too.
The rate on each quote is only part of the picture. Annual percentage rate (APR) folds in fees and points, so it will sit above the note rate, and the numbers above are examples, not offers.
- Request both scenarios on the same date, for the same property and price.
- Compare monthly payment, cash to close, and total cost at your expected time in the home.
- Check APR, PMI, and the financed fee, not just the rate.
The common mistake is comparing only interest rates. A lower rate with a heavy fee or PMI can cost more overall.
5. Refinance With an IRRRL or VA Cash-Out Loan if You Already Own
Homeowners with an existing VA loan can use the Interest Rate Reduction Refinance Loan (IRRRL) to lower the rate or payment, often with less paperwork than a full refinance. A VA cash-out refinance serves a different purpose: it taps equity, and it can also move a homeowner with a non-VA mortgage into a VA loan. Details and funding fees appear on the IRRRL page on VA.gov; as of 2026 confirm the current fee for each product.
The IRRRL requires a net tangible benefit, meaning the refinance must measurably help you, such as a lower rate or a move from an adjustable to a fixed rate. VA also generally expects you to recoup the costs within a set period, so run the break-even yourself.
Illustration: costs plus funding fee total $4,000, and the new payment saves $125 a month. $4,000 divided by $125 gives a 32-month break-even. If you will stay five years, you come out ahead. If you may sell in two, you do not.
- Pull your current note and latest mortgage statement.
- Request IRRRL and cash-out quotes together.
- Divide total costs by monthly savings to get break-even months.
- Compare that against how long you honestly plan to stay.
The common mistake is refinancing into a lower payment by extending the term. Restarting a 30-year clock on a loan you have paid down for eight years can cut the payment while raising total interest. Compare the interest remaining on your current loan to the interest on the new one.
Measure break-even months, whether the net tangible benefit is met, and total interest saved over the life of the loan.
6. Shop Offers Through a Broker With a Soft Pull and Dare to Compare
Pricing for the same veteran, the same property, and the same loan type can differ from one lender to the next. A broker can price your file with hundreds of wholesale lenders, while a single lender prices from its own shelf. Duane Buziak has been helping buyers find the right mortgage since 2014, and this comparison is the core of what Free Mortgage Search by Duane Buziak does.
| Dimension | Broker with wholesale access | Single-lender shelf |
|---|---|---|
| Pricing sources | Hundreds of wholesale lenders | One lender’s own pricing |
| Loan types in one conversation | VA, IRRRL, cash-out, and conventional across lenders | Whatever that lender offers |
| Credit check to compare | NoTouch Credit Pull (soft pull) | Varies by lender; ask before applying |
| Same-day Loan Estimate comparison | Several estimates from different lenders | One estimate |
| Fee and lock flexibility | Compared across lenders | Set by one lender |
Many veterans fear that comparing hurts their credit. A soft pull does not create a hard inquiry, and the CFPB’s mortgage shopping guidance encourages getting multiple Loan Estimates. Dare to Compare is the practice of doing exactly that: put competing offers next to each other and let the numbers decide.
Illustration: three Loan Estimates for the same $350,000 VA loan arrive with different rates, lender fees, and APRs. One has the lowest rate but the highest fees, and only the APR and total-fee line reveal it.
- Start the free search, which uses a soft pull.
- Pick your top options and request Loan Estimates the same day.
- Compare rate, APR, lender fees, and lock period.
- Ask what a lock extension costs if closing slips.
The common mistake is comparing offers taken weeks apart, or with different loan amounts or lock periods. Rates move, so the comparison means nothing unless the inputs match.
Measure APR, total lender fees, and lock period across at least three same-day estimates.
7. Look for No-Out-of-Pocket Closing Options
Closing costs are separate from the down payment, and many veterans want to keep them off their savings. No-out-of-pocket closing options combine seller concessions, lender credits, and timing. VA limits which fees a veteran may be charged and caps certain seller concessions, so confirm current rules with your loan officer and the VA funding fee and closing costs page.
The trade-off is simple: a lender credit usually comes with a higher rate. Illustration on a $350,000 loan: at 6.25% the payment is about $2,155. Taking a $5,000 credit at 6.50% brings it to about $2,212, a difference of $57 a month. $5,000 divided by $57 is about 88 months, or just over seven years. Sell or refinance before then and the credit paid off. Keep the loan longer and it cost you.
- Ask for quotes with and without credits on the same day.
- Confirm which fees VA lets the veteran pay.
- Negotiate seller concessions into the purchase contract.
- Calculate the break-even in months for any credit.
The common mistake is accepting a higher rate for credits when you plan to hold the loan for many years. Use the same-day estimates from strategy 6 to see the trade side by side.
Measure cash to close, the rate difference, and the credit-versus-rate break-even in months. Rates here are illustrative, and your APR will reflect actual fees.
Eight Questions Veterans Ask Before Comparing Loan Offers
What mortgage options are available to veterans?
Veterans can use a VA purchase loan, a VA IRRRL, a VA cash-out refinance, or conventional financing. The right one depends on entitlement, funding fee, and compared offers.
Do I need a down payment with a VA loan?
Not if you have full entitlement and the lender approves your file. With partial entitlement, you may need a down payment above a certain price.
Is a VA loan free of fees?
No. Most veterans owe a funding fee, often financed into the loan, plus closing costs. Exempt veterans, such as those receiving VA disability compensation, owe no funding fee.
Does a Certificate of Eligibility guarantee approval?
No. It proves eligibility only. Credit, income, debts, and the property still have to qualify.
Does comparing mortgage offers hurt my credit?
Not with a soft pull. NoTouch Credit Pull lets you compare without a hard inquiry.
When does an IRRRL make sense?
When your break-even is shorter than the time you will keep the home and the refinance delivers a net tangible benefit. Do not extend the term just to lower the payment.
Is VA always cheaper than conventional?
No. In the worked example above, the two cost about the same at year seven. Compare payment, cash to close, and total cost on real quotes.
Does it cost anything to use Free Mortgage Search by Duane Buziak?
The comparison tool is free. Loan costs depend on the offer you choose, and your Loan Estimate shows them.
Where to Start and How the Pieces Fit Together
Start with strategy 1. Until the COE and entitlement figure are in writing, every other number is a guess. Then run strategies 3 and 4 with real quotes, since the funding fee and the VA-versus-conventional comparison decide which loan type you pursue. Finish with strategy 6: use NoTouch Credit Pull and Dare to Compare to line up same-day offers without a hard inquiry, then apply strategy 7 to the offer you like.
Your dream home is within reach. Start comparing personalized mortgage rates from trusted lenders today and discover the loan solution that fits your budget and goals. Compare rates now and take the first step toward securing your home with expert guidance every step of the way, from Free Mortgage Search by Duane Buziak.
