Hidden VA Loan Benefits Every Buyer Should Know

If you’re eligible for a VA loan, you may already know it comes with perks, including no down payment, no private mortgage insurance, and better rates than most other loans. But there are a few VA loan benefits that can get less attention.

These extra advantages can help you save money, lower your payment, or make your home easier to sell later. In this guide, we will take a look at the hidden gems of VA loan benefits.

What is a VA Loan?

A VA loan is a special financing option that the Department of Veterans Affairs offers to make housing more affordable for the brave men and women in the military. It helps service members, veterans, and some surviving spouses buy or refinance a home.

The best-known benefits are:

1. No down payment in most cases
2. No monthly private mortgage insurance
3. Easier approval standards
4. Competitive interest rates

These features make VA loans a compelling option for eligible borrowers. Additional program benefits may also help reduce costs or improve long-term affordability.

What Does it Mean to Have an Assumable Mortgage?

Most VA loans are assumable. That means another buyer can take over your existing VA loan, including your current rate and terms.

Having an assumable mortgage matters when rates are high. Most buyers would probably prefer to take over a 3 percent loan instead of applying for a new one at 7 percent. That can save them hundreds of dollars each month.

Here’s how it works:

1. The buyer must qualify with the lender
2. The buyer can be another veteran, a service member, a surviving spouse, or even a civilian
3. The buyer pays a small assumption funding fee, usually about half a percent of the loan amount.

If you sell your home, ask for a release of liability. It protects your VA loan entitlement so you can use it again later.

Having an assumable mortgage can make your home more attractive to buyers and help it sell faster.

What is an IRRRL?

The Interest Rate Reduction Refinance Loan (IRRRL) helps current VA borrowers lower their rate with less paperwork. It’s often called a VA streamline refinance.

To qualify for an IRRRL, you must meet the following criteria:

• You are currently using a VA-backed home loan, and
• You’re using the IRRRL to refinance your existing VA-backed home loan, and
• You can certify that you currently live in or used to live in the home covered by the loan

The IRRRL is a great benefit because it can make the refinance process easier. Here’s what makes it simple:

• No new appraisal required
• Little-to-no income verification
• Quick processing
• You can roll most closing costs into the new loan

The IRRRL is ideal if rates drop, or you want to move from an adjustable rate to a fixed rate.

The VA funding fee for an IRRRL is typically 0.5 percent, although some borrowers may qualify for an exemption. For eligible homeowners, the IRRRL may offer a streamlined path to lower monthly payments or reduced interest costs.

What to Know About the VA Funding Fee

Every VA loan includes a funding fee. It helps keep the program running for future borrowers. The fee depends on the loan type, how much you put down, and if you’ve used your VA benefit before.

The fee is usually between 0.5 and 3.3 percent of the loan amount. You can pay it up front or roll it into the loan.

Many veterans don’t have to pay the fee at all. You’re exempt if you:

• Receive VA disability compensation
• Are an active-duty service member with a Purple Heart
• Are the surviving spouse of a veteran who died in service or from a service-related cause

If you qualify for an exemption after your loan closes, you can apply for a refund.

Can You Use a VA Loan More Than Once?

Yes, you can use your VA Loan benefit more than once. Many eligible borrowers buy or refinance multiple homes over their lifetime using the same program.

Your VA entitlement is the amount the Department of Veterans Affairs guarantees on your loan. When you sell your home or pay off your existing VA Loan, your full entitlement can be restored, allowing you to use your VA loan benefits again.

It’s also possible to have more than one VA Loan at the same time. This can happen if you relocate for work but keep your first home. To qualify, you need enough remaining entitlement and must stay within the VA county loan limits for your area.

If you haven’t paid off your first loan but still want to buy another property, you can apply for a partial entitlement. This allows you to use the unused portion of your VA benefit for a new purchase, depending on your loan size and location.

How Do You Combine VA Loan Benefits?

You can often stack VA loan benefits to save even more.

For example:

• Use an IRRRL to refinance at a lower rate and apply a funding fee exemption to cut costs further
• Sell a home with an assumable mortgage while keeping your VA entitlement for your next purchase

Talk with your lender about combining your VA Loan benefits, as they can help you plan how to use these benefits together. A little strategy can make a big difference in what you pay over time.

Frequently Asked Questions (FAQ) About VA Loans

What VA loan benefits do most people miss?

Assumable mortgages, IRRRL refinancing, and VA funding fee exemptions.

Can someone who isn’t a veteran assume a VA loan?

Yes, as long as they qualify, and the lender and the VA approve.

How does the IRRRL save money?

It lets you lower your rate with less paperwork and fewer costs.

Who doesn’t have to pay the VA funding fee?

Veterans with service-connected disabilities, qualifying surviving spouses, and active-duty Purple Heart recipients.

Are VA loans still assumable in 2025?

Yes. VA loans are still assumable and can provide a significant advantage in a high-rate market.

Can I use a VA loan more than once?

Yes. You can restore your entitlement after you sell or pay off your previous VA loan.

What’s the risk when someone assumes a VA loan?

If you don’t get a release of liability, your entitlement stays tied to that loan until it’s paid off.

The VA loan isn’t just another mortgage. It’s a benefit that is earned through service to our country.

By learning about assumable mortgages, the IRRRL, and funding fee exemptions, you can make smarter choices and keep more money in your pocket.

If you’re ready to buy, sell, or refinance, talk to a lender who can help you use every benefit available to you. Get started with a First Heritage Mortgage loan officer today and see how far your VA loan benefit can take you.