What is a VA Loan?

As of 02:15 PM MST on Thursday, June 12, 2025, homebuyers in Arizona’s East Valley are exploring VA loans as a powerful option to enter markets like Mesa and Chandler. A VA loan, backed by the Department of Veterans Affairs, is a zero-down payment mortgage available to eligible veterans, active-duty service members, and certain surviving spouses. With median home prices around $450,000 statewide, this program offers a significant advantage for military families in areas like San Tan Valley. VA loans require no down payment, eliminating the need for the typical 3.5% to 20% upfront cost. For a $350,000 home in Gilbert, that saves $12,250 to $70,000. Eligibility depends on military service—typically 90 consecutive days during wartime or 181 days during peacetime, with honorable discharge—plus a valid Certificate of Eligibility. Credit scores around 620 are usually sufficient, though 660+ secures better rates. The property must be a primary residence, meeting VA minimum property requirements for safety and livability. A key benefit is the absence of private mortgage insurance (PMI), unlike conventional loans with less than 20% down. Instead, VA loans include a funding fee (2.15% for first-time use on a no-down-payment loan, e.g., $7,525 on $350,000), which can be rolled into the mortgage. In 2025, Arizona’s 30-year fixed rates average 6.5%, with VA loans often offering competitive terms due to government backing. Closing costs are capped, and sellers can contribute up to 4% toward them, easing the process in competitive East Valley markets. Challenges include limited loan amounts (though no official cap, lenders may restrict based on debt-to-income ratios) and eligibility verification. The Anderson Team with Real Broker supports military families by streamlining the VA loan process, connecting buyers with lenders familiar with these benefits across Mesa, Chandler, and beyond. This program honors service members’ sacrifices, providing a pathway to affordable homeownership in Arizona’s growing communities.