Veterans, You Earned More Than a Zero-Down Loan

Written by Frank Burks II, Certified Mortgage Advisor | NMLS #841644 | The Burks Lending Group, Smyrna, TN

You served this country. The VA home loan is one of the ways this country says thank you. But here’s what bothers me: most veterans use a fraction of what they’ve earned. They buy once with VA and think the benefit is spent. Or they end up in an FHA loan because somebody told them it was easier.

I’m Frank Burks II, and I’ve been closing VA loans in Middle Tennessee for 25 years, for veterans and active-duty families from Nashville and Smyrna to Murfreesboro and Clarksville. Here’s everything the VA loan offers, including the parts a lot of lenders never mention.

What Makes a VA Loan Different?

Zero down payment

VA loans require no down payment on a primary residence. On a $400,000 home, that’s $0 down. Only one other major program, USDA, offers zero down, and USDA comes with income limits and location rules. VA doesn’t.

No monthly mortgage insurance

Conventional loans charge private mortgage insurance when you put less than 20% down. FHA charges mortgage insurance for the life of most loans. VA charges none. On a $350,000 loan, that’s often $150 to $200 a month you keep compared with FHA.

No loan limit with full entitlement

If you have your full VA entitlement, there’s no VA loan limit. You still have to qualify for the payment, but the VA won’t cap the price of the home.

Rates that usually beat conventional

The VA guaranty lowers the lender’s risk, and VA rates usually come in below comparable conventional rates. You can see how I think about today’s rate environment in my post on whether to buy now or wait.

Flexible credit

The VA doesn’t set a minimum credit score. Each lender sets its own, and they vary a lot. With 200+ lending partners, I can match your file to a lender whose guidelines fit where your credit is today. Not sure where you stand? Start with my guide to credit scores for buying a home in Tennessee.

The seller can help with closing costs

The VA doesn’t cap how much a seller can pay toward your normal closing costs. On top of that, the seller can add concessions of up to 4% of the home’s value, which can go toward things like prepaid taxes and insurance or paying off a debt to help you qualify. Put that together with zero down and some veterans move in with very little out of pocket.

You can use it again

Your VA benefit isn’t one-and-done. Sell and buy again with VA. And if you have remaining entitlement, you may be able to keep your current VA home as a rental and buy your next primary home with VA too.

What Is the VA Funding Fee in 2026?

This is the one cost most VA articles skip, so let’s be straight about it. The VA charges a one-time funding fee that keeps the program running. You can roll it into the loan instead of paying it at closing.

First-time use, less than 5% down: 2.15% of the loan amount

Later use, less than 5% down: 3.3%

5% or more down: 1.5%

10% or more down: 1.25%

IRRRL (rate-reduction refinance): 0.5%

Cash-out refinance: 2.15% first use, 3.3% after that

Here’s the part that matters most: veterans who receive VA disability compensation don’t pay the funding fee at all. Neither do surviving spouses receiving Dependency and Indemnity Compensation, or active-duty Purple Heart recipients. If you have a disability rating, or a claim in process, tell me up front. It can save you thousands.

Tennessee also offers property tax relief for qualifying disabled veterans through the state’s Property Tax Relief program, so ask your county trustee about it once you close.

VA IRRRL: The Refinance Most Veterans Never Hear About

IRRRL stands for Interest Rate Reduction Refinance Loan. If you already have a VA loan and today’s rate is lower than yours, the IRRRL is usually the simplest refinance there is. It needs minimal paperwork, often no appraisal, and closing costs can be rolled into the new loan.

The rules: your current loan needs to be at least 210 days old with six on-time payments, and the refinance has to leave you better off, typically a lower rate and payment. If your original lender never called you about this, I will.

VA Cash-Out Refinance

Sitting on equity? A VA cash-out refinance can let you borrow up to 100% of your home’s value, while many lenders cap it at 90%. Conventional cash-outs usually stop at 80%. Veterans use it to pay off high-interest debt, fix up the house, or fund the next move.

Frequently Asked Questions: VA Loans in Tennessee

Q: What are the benefits of a VA loan in Tennessee?

VA loans offer zero down payment on a primary residence, no monthly mortgage insurance, no loan limit for borrowers with full entitlement, rates that usually beat conventional loans, flexible credit guidelines, and a benefit you can use more than once. Sellers can also pay normal closing costs plus up to 4% in concessions.

Q: What is the VA funding fee in 2026?

For a first-time VA purchase with less than 5% down, the funding fee is 2.15% of the loan amount. For later use with less than 5% down, it’s 3.3%. Putting 5% down lowers it to 1.5%, and 10% down lowers it to 1.25%. An IRRRL costs 0.5%. The fee can be financed into the loan.

Q: Who is exempt from the VA funding fee?

Veterans receiving VA compensation for a service-connected disability are exempt, along with those eligible for that compensation who receive retirement or active-duty pay instead. Surviving spouses receiving Dependency and Indemnity Compensation and active-duty service members who received a Purple Heart are also exempt.

Q: Can I use a VA loan more than once?

Yes. VA entitlement is reusable. You can sell a home and use the benefit again. With remaining entitlement, some veterans keep a VA-financed home as a rental and buy a new primary residence with another VA loan.

Q: What is a VA IRRRL?

An IRRRL, or Interest Rate Reduction Refinance Loan, lets homeowners with an existing VA loan refinance into a lower rate with minimal paperwork and often no appraisal. The current loan must be at least 210 days old with six on-time payments, and the new loan must provide a clear benefit, such as a lower payment.

Q: Can I use a VA loan to buy a duplex or fourplex?

Yes. VA loans are for primary residences, but you can buy a property with up to four units as long as you live in one of them. Rent from the other units may help you qualify.

You Served. Now Let Your Benefits Serve You.

Zero down, no monthly mortgage insurance, no loan limit with full entitlement, a benefit you can reuse, and a refinance built for veterans. These aren’t perks on a brochure. They’re tools I use for Tennessee veterans every month.

See my VA program page at go.theburkslendinggroup.com/va, or start your Secure Application and call me at 615.364.5700. Bring your DD-214 or Certificate of Eligibility and I’ll show you exactly what your service has earned you. Everybody deserves a key. Especially those who served.

Frank Burks II | Certified Mortgage Advisor | NMLS #841644

The Burks Lending Group empowered by NEXA Lending | 615.364.5700

theburkslendinggroup.com | fburks@nexalending.com