What makes a VA loan different

VA loans typically allow you to buy with no down payment, and you avoid the monthly mortgage insurance that comes with a lot of conventional loans. There is a funding fee involved, which as of 2026 runs 2.15% of the loan amount for first-time use with no down payment, dropping to 1.5% with 5 to 9.99% down and 1.25% with 10% or more down. Veterans with service-connected disabilities, surviving spouses receiving Dependency and Indemnity Compensation, and Purple Heart recipients are exempt from the funding fee entirely, so it's worth confirming your exemption status directly with a VA-approved lender before you assume the fee applies to you.

A VA loan also pairs well with other buyer resources. It's worth comparing it against down payment assistance programs available to Indiana buyers, and understanding the difference between being pre-qualified and pre-approved before you start touring homes, since a VA pre-approval carries real weight with sellers once they understand how the financing works.

Why the right agent matters here

Not every seller understands how VA loans work, and honestly, not every agent does either. Part of my job is making sure your offer is presented the right way so it's taken seriously, VA financing and all, including addressing any misconceptions about VA appraisal requirements before they become a sticking point in negotiations.

If you're relocating here for military service, whether that's Naval Surface Warfare Center Crane or another assignment, a relocation checklist for families moving to south-central Indiana covers some of the timeline questions that come up alongside financing.

If you've served and you're ready to talk about using your VA benefit here in Bloomington, Bedford, or anywhere in between, call or text (812) 360-3863, or visit LesaMillerRealEstate.com/Links. And thank you for your service.

Frequently Asked Questions

Do I have to pay the VA funding fee every time I use a VA loan?

It depends on your situation. The fee is higher on subsequent uses than a first-time use, but veterans with service-connected disabilities, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and Purple Heart recipients are exempt entirely. Confirm your specific status with a VA-approved lender.

Can I buy with no money down using a VA loan?

Yes, that's one of the core benefits of a VA loan, no down payment is required in most cases, which is different from most conventional loan programs.