Phoenix is a VA loan town
Between Luke Air Force Base, the Guard presence, and one of the larger veteran populations in the country, the Valley sees a steady stream of VA-eligible buyers. Yet a surprising number of them either do not use the benefit or use it without understanding what it actually gives them. The full program details live on our VA loans page. This article covers the parts that decide real Phoenix deals.
Zero down, with no loan limit catch
With full entitlement, there is no VA loan limit. A qualified veteran can buy at Phoenix Metro prices, including well above the conforming limit, with nothing down. Veterans with reduced entitlement from a prior VA loan still have strong options, and restoring entitlement after a sale is routine paperwork I handle all the time.
No down payment does not mean no costs. There are closing costs and prepaids, though VA also limits which fees a veteran can be charged at all. And VA has no monthly mortgage insurance, which is a structural payment advantage over FHA and low-down conventional loans every single month you own the home.
The funding fee, honestly
VA charges a one-time funding fee that is typically financed into the loan: currently 2.15 percent for first use with nothing down, 3.30 percent for subsequent use. Two things buyers miss. First, veterans receiving VA disability compensation are exempt, and so are eligible surviving spouses. Second, the fee drops if you do put money down. I check exemption status on every VA file because the difference is real money.
What listing agents get wrong about VA offers
VA offers still get unfairly discounted in multiple-offer situations, usually based on folklore. The reality (full listing-agent guide here):
- The VA appraisal is not a deal killer. Like FHA, VA checks minimum property requirements. On a normal Phoenix home these are health-and-safety basics. And VA's Tidewater process actually gives the parties a chance to submit comps before a low value is finalized, which is more protection than a conventional appraisal offers.
- Sellers are not required to pay the buyer's costs. Sellers can pay normal buyer closing costs on a VA deal just like any other deal, and true concessions are capped at 4 percent of value. Nothing about VA forces a seller to pay anything.
- VA buyers are strong buyers. VA underwriting includes a residual income test that most other programs do not have. A VA approval has been stress-tested for real-world budget room, which is one reason VA loans historically perform well.
Using the benefit more than once
Your VA benefit is reusable. You can have two VA loans at once in some situations, restore entitlement after selling, and use the VA streamline refinance later if rates improve. Treat it as a lifetime tool, not a one-shot coupon.
Make your offer look as strong as it is
The fix for VA skepticism is certainty. I issue VA pre-approvals after actually reviewing income, assets, and the certificate of eligibility, and I call the listing side before offers are reviewed when it helps. If you are VA-eligible and buying in the Valley, let's talk before you write your first offer.