VA Loan Essentials
What is a VA loan and who’s eligible?
VA loan is a type of mortgage offered by a lender but backed by the U.S. Department of Veterans Affairs (VA). Most VA borrowers are active duty military, reservists, and veterans, but service academy cadets, military spouses, and others may also be eligible. You can find full eligibility requirements at
va.gov or ask your local DHI Mortgage Loan Originator.
If I get a VA loan, am I still eligible for other incentives from DHI Mortgage?
Yes, you may be eligible for DHI Mortgage’s special interest rates on select D.R. Horton homes with use on a VA loan and other closing cost incentives. Your DHI Mortgage Loan Originator can go over the details with you.
Is it true VA borrowers can get into a home for $1 down?
With 100% financing, borrowers can often get their earnest money deposit back at closing, except for $1. So, depending on incentives, some qualifying borrowers can get into a house with a $1 investment. This promotion is not available everywhere, and the buyer is still responsible for the funding fee and discount points. See your local DHI Mortgage division for more information.
Do I have to make a down payment?
VA loans are designed to help qualified veterans, reservists, and active duty service members obtain 100% financing, which means no down payment funds are required.
What if I have to move again soon?
Many military homeowners rent out their property when they’re transferred. After you’ve lived in your home for 12 months, you may be eligible to take out another VA loan for your next home and rent out your current one as a secondary source of income. And if you sell your home outright, your entitlement is restored, allowing you to use your full VA loan benefit again.
Is now a good time to buy?
Each individual’s “perfect time” to buy a home is unique, but now may be as good a time as any. As a veteran or member of the armed services, eligibility for a fixed-rate VA loan can make the decision easier. And homeownership can provide great investment possibilities for your future.
Requirements, Fees, and Benefits
What’s a Certificate of Eligibility (COE), and how do I get one?
The COE is a document confirming that you’ve met the service requirements for a VA loan. You can get one through the
VA’s eBenefits portal.
Are there any requirements besides service?
Yes, you’ll need to meet the financial guidelines of the VA as well as your lender. While the VA doesn’t require a minimum credit score, most lenders do.
What’s a VA loan entitlement?
Your entitlement is the VA’s guarantee to reimburse your lender up to a certain dollar amount. If part of your entitlement is in use on a previous loan, you may have a remainder available. You can reuse your VA loan benefits if you have leftover entitlement or no longer own the home you bought with a VA loan.
What’s a VA funding fee?
A funding fee is a one-time fee, typically 1-3% of the loan amount, that the borrower pays to help reduce the cost of the loan guarantee for taxpayers. If you meet certain qualifications, such as a service-connected disability or Purple Heart, you may be exempt from the fee. And the fee can be financed into the loan amount so it's not an out-of-pocket expense unless elected to pay up front.
Will I have to pay for private mortgage insurance?
No, private mortgage insurance (PMI) is not required for VA loans.
Are there tax benefits on VA loans?
If you have a 100% permanent and total (P&T) disability rating from the VA, many states offer full property tax exemption, while others offer reductions. Partial relief may also be offered to those with lower P&T ratings. Check your
state requirements.
Can I use my basic allowance for housing (BAH)?
This benefit for service members can often help with off-base housing expenses. Your BAH may cover all or part of your mortgage, depending on your pay grade, duty station, and other factors. Find your BAH rate at
travel.dod.mil.
Permanent Change of Station (PCS) Moves
Do I have to wait for my transfer orders to come through to begin the homebuying process?
No. Occupancy rules generally require you to move in within 60 days of closing. There are some exceptions, like if you have permanent change of station (PCS) orders or are deployed, in which case the home can be vacant for up to a year.
Do I have to close on my new home in person?
No. With mobile notary and power of attorney options, you can close on your home even if you’re not yet on site.
How do I get started finding a home?
The garrison command at your base can provide information on your location and services. And the D.R. Horton communities near your new base may be a great place to start looking!
Can I use a temporary lodging allowance (TLA)?
If your home isn’t move-in ready when your orders come through, you may be able to take advantage of the Temporary Lodging Allowance, or TLA. The TLA pays for temporary lodging expenses while you wait for permanent housing either on base or off.
VA Homebuyer Testimonials
Hear from two of our VA borrowers on their experience with DHI Mortgage. We look forward to serving you as well!
"Working with the DHIM team was an outstanding experience. As an Army veteran, I was navigating the homebuying process for the first time, and they made it seamless and straightforward. Their expertise, patience, and dedication to serving military buyers were evident every step of the way. From securing a VA loan to closing with DHI Title, the entire process was very streamlined and simple. I’m now a proud homeowner, building wealth for my future, thanks to DHIM’s commitment to making homeownership accessible for veterans. Whether you're an active member or a veteran looking to buy a home, I highly recommend D.R. Horton above all, because they are committed to serving our community. " – VA Borrower
“I would like to say working with DHI was absolutely great. My DHI Mortgage Loan Originator made the process so easy I couldn't believe it. I was actually preapproved with another lender but was surprised when the interest rate quoted by DHI was more than 1 percent less with the VA loan. I would certainly urge all those who qualify for a VA loan to explore it with DHI Mortgage. I'm sure you will be glad you did. It's easy!!” – VA Borrower