If you're a veteran, active-duty service member, or an eligible surviving spouse, the VA loan is one of the most powerful tools available to help you achieve homeownership. But what exactly is a VA loan, and how does it work? In this post, we break down the fundamentals of the VA loan program so you can decide if it's the right path for your homebuying journey in South Florida.

What Is a VA Loan?

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). It was created in 1944 as part of the original GI Bill to help veterans return from service and reintegrate into civilian life by making homeownership more accessible and affordable.

VA loans are provided by private lenders—like banks, credit unions, and mortgage companies—but backed by the federal government, which makes them less risky for lenders and more beneficial for you.

Key Benefits of a VA Loan

Here’s why veterans and military families love VA loans:

• No down payment required (in most cases)

• No private mortgage insurance (PMI) needed

• Competitive interest rates

• Lenient credit and income requirements

• Limited closing costs

• Right to prepay without penalties

Who Is Eligible?

You may be eligible for a VA loan if you meet one or more of the following criteria:

• You served 90 consecutive days of active service during wartime

• You served 181 days of active service during peacetime

• You have more than 6 years of service in the National Guard or Reserves

• You are the surviving spouse of a service member who died in the line of duty or as a result of a service-connected disability

You will need a Certificate of Eligibility (COE) to move forward with the loan process. Your VA-approved lender can usually obtain this for you.

What Can You Use a VA Loan For?

VA loans can be used to:

• Buy a single-family home, townhouse, or VA-approved condo (Even rejected condos—ask me how!)

• Build a new home

• Make repairs or improvements to an existing home

• Refinance an existing mortgage (VA IRRRL or Cash-Out)

Common Misconceptions

• Myth: You can only use a VA loan once.

  • Truth: You can use your VA loan benefit multiple times as long as you meet the entitlement requirements.

• Myth: VA loans take too long.

  • Truth: VA loans can close just as fast as conventional loans with a good lender.

• Myth: VA loans are only for first-time buyers.

  • Truth: VA loans are available to any eligible veteran or service member, regardless of whether you've owned a home before.

Final Thoughts

Understanding the basics of VA loans is the first step toward unlocking one of the best benefits available to those who’ve served. With zero down payment, favorable terms, and no private mortgage insurance, VA loans provide a smart and affordable path to homeownership in South Florida.

As a proud member of the Compass Military Division—a team of veterans and military spouses dedicated to guiding service members through the homebuying process—I’m here to walk you through every step with expertise and care.

I’m Celia Ruiz, your South Florida Regional Director, and I’m honored to serve those who’ve served.

Stay tuned for our next post: “Are You Eligible? How to Know If You Qualify for a VA Loan.”