To buy a Virginia Beach home with a VA loan, get your Certificate of Eligibility, get preapproved with a lender that closes VA loans often, and make an offer with VA-friendly terms. Then complete the VA appraisal and the termite report Virginia requires, and close. Eligible buyers with full entitlement can buy with no down payment.
Key facts
- VA loans require no down payment for eligible borrowers with full entitlement, and no monthly mortgage insurance.
- With full entitlement, there's no VA loan limit. Your lender decides how much you qualify for.
- The VA funding fee for a purchase is 2.15% (first use, under 5% down) or 3.3% (later use, under 5% down), lower with a larger down payment. Veterans receiving VA disability compensation are exempt.
- Seller concessions are capped at 4% of the VA reasonable value. Normal closing costs paid by the seller don't count toward that cap.
- A wood-destroying insect report is required for VA loans everywhere in Virginia.
Who is eligible for a VA home loan?
Eligibility depends on your service history. In general, VA home loan benefits are available to many veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and some surviving spouses. The details, including minimum service periods and discharge requirements, are on VA's eligibility page.
Your proof is the Certificate of Eligibility (COE). You can request it through VA online, and most lenders can pull it for you in minutes. The COE also shows whether you're exempt from the funding fee and how much entitlement you have.
What are the steps to buy with a VA loan in Virginia Beach?
- Get your COE and preapproval. Choose a lender who closes VA loans regularly. Hampton Roads has many, because so many buyers here use the benefit.
- Set your budget. Build in real estate tax at the city rate of $0.97 per $100 of assessed value, insurance, flood insurance if required, and HOA fees. If you receive BAH, look up your current rate.
- Choose your area. Consider your command. For NAS Oceana and Dam Neck, see neighborhoods near NAS Oceana. For JEB Little Creek-Fort Story, many buyers look at Bayside and nearby areas. For Naval Station Norfolk, central neighborhoods like Kempsville are popular.
- Write a competitive offer. A VA offer can be as strong as a conventional one. Clean terms, a reasonable inspection period and a lender who answers the listing agent's call all help.
- Order inspections. A home inspection is your choice and strongly recommended. The termite report is required for the VA loan.
- Complete the VA appraisal. VA assigns an appraiser who determines the home's reasonable value and checks VA's minimum property requirements.
- Clear conditions and close. Your lender finalizes underwriting, and you sign at settlement.
How does the VA funding fee work?
The funding fee helps keep the program running without down payments or monthly mortgage insurance. For purchase loans:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
- The fee is a percentage of the loan amount, not the price.
- It can be financed into the loan. On a VA purchase loan, the funding fee is the only cost you can roll in. Other closing costs must be paid at closing by you, the seller or the lender.
- Exemptions include veterans receiving VA compensation for a service-connected disability, certain surviving spouses and active-duty Purple Heart recipients.
- VA News reported that borrowers can deduct VA funding fees on their taxes starting in 2026. Ask your tax advisor how it applies to you.
Can the seller pay my closing costs?
Yes, and in Virginia Beach it's common to ask. VA separates two kinds of seller help:
- Normal closing costs, such as appraisal, title and recording fees, can be paid by the seller and don't count toward the cap.
- Concessions, such as paying your funding fee, prepaid taxes and insurance, or paying off debts, are capped at 4% of the home's VA reasonable value.
Whether the seller agrees depends on the market for that home. On a home that has been sitting, there's often room to ask. On a hot listing, a request for seller help can weaken your offer.
What should I know about the VA appraisal?
The VA appraisal isn't an inspection, but it does check that the home is safe, sound and sanitary under VA's minimum property requirements. Common issues include peeling paint on older homes, missing handrails, roof problems and HVAC that doesn't work.
If the appraiser expects a value below your contract price, VA's Tidewater process kicks in. The appraiser notifies your lender's point of contact, who has two business days to send more comparable sales before the report is finished. If the value is still short, you can:
- Request a reconsideration of value with better comparables.
- Renegotiate the price with the seller.
- Pay the difference in cash.
- Walk away if your contract allows it. VA purchase contracts must include what's known as the amendatory or escape clause. It says you aren't required to complete the purchase, or lose your earnest money, if the price is higher than the VA reasonable value. You can still choose to go ahead and pay the difference yourself.
What mistakes should VA buyers avoid?
- Opening new credit or changing jobs during the loan process.
- Skipping the home inspection because the appraisal "checks the house." It doesn't.
- Assuming every condo qualifies.
- Forgetting to budget for flood insurance on waterfront homes.
What about condos and homes near the water?
- Condos must be in a VA-approved project. Check VA's condo search early, before you fall in love with a unit.
- Flood zones don't block a VA loan, but flood insurance will be required in a Special Flood Hazard Area. See my guide to flood insurance in Virginia Beach.
- Noise zones near NAS Oceana require a seller disclosure but don't block a VA loan.
What other benefits help Virginia Beach veterans?
- Disabled veteran real estate tax exemption. Veterans rated 100% service-connected, permanent and total disability may have their primary residence exempt from real estate tax. Surviving spouses may also qualify under the rules. Apply through the Commissioner of the Revenue.
- Virginia military benefits subtraction. Up to $40,000 of qualifying military benefits, including retirement pay, can be subtracted from Virginia taxable income for 2025 and later.
- Reusing your benefit. Once a VA loan is paid off and the home sold, you can usually have your entitlement restored. Your lender can explain your options.
For more, see the veterans home buying guide and navigating military relocation in Virginia Beach.
Ready to use your VA benefit in Virginia Beach?
Search Virginia Beach homes for sale, or start near Bayside or Kempsville. Then contact me or call or text (757) 919-8874. I'll connect you with experienced VA lenders and help you write an offer that's strong and protected.
Barry Jenkins, Legacy Home Team at LPT Realty
Sources
- VA: Eligibility for VA Home Loan Programs
- VA: How to Request a VA Home Loan COE
- VA: Home Loan Entitlement and Limits
- VA: Funding Fee and Closing Costs
- VA News: Home loan borrowers can now deduct funding fees
- VA Loan Guaranty Service: Quick Reference for Real Estate Professionals
- VA Home Loans: Local Requirements (termite inspections)
- City of Virginia Beach: Disabled Veterans Exemption
- Virginia Tax: Military Benefits Subtraction FAQ
Frequently asked questions
Can I really buy a home with zero down using a VA loan?
Yes, if you're eligible and have full entitlement, VA doesn't require a down payment as long as the price doesn't exceed the appraised value and your lender approves you. You'll still need money for closing costs unless the seller or lender covers them, plus your earnest money deposit.
How much is the VA funding fee?
For a purchase loan, it's 2.15% of the loan amount the first time you use your benefit with less than 5% down, 1.5% with at least 5% down and 1.25% with at least 10% down. After first use, it's 3.3% with less than 5% down. It can be financed into the loan.
Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation, active-duty Purple Heart recipients and certain others are exempt. Your Certificate of Eligibility shows your funding fee status.
Can the seller pay my closing costs on a VA loan?
Yes. A seller can pay your normal closing costs. Separately, seller concessions such as paying your funding fee or prepaid items are capped at 4% of the home's VA reasonable value. How much a seller agrees to pay is a negotiation.
What happens if a VA appraisal comes in low?
VA's Tidewater process gives your lender two business days to send more comparable sales if the appraiser expects a low value. If the value is still short, you can request a reconsideration of value, renegotiate the price or pay the difference in cash.
Does a VA loan require a termite inspection in Virginia?
Yes. VA requires a wood-destroying insect inspection report for loans throughout Virginia, and any active infestation or damage must be treated or repaired before closing.
How soon do I have to move in after closing?
VA requires you to certify that you intend to live in the home. A reasonable time generally means within 60 days of closing. Longer periods may be allowed in specific situations, such as a planned return from deployment, so talk with your lender.
Is there a VA loan limit in Virginia Beach?
Not if you have full entitlement. VA says borrowers with full entitlement have no VA loan limit. You can borrow as much as your lender approves. If you have a VA loan on another home, your remaining entitlement may limit your no-down-payment amount.