VA Home Loan Guide for Service Members and Veterans Buying a New Perry Home

For many military families, buying a home represents something steady after years of movement. It is about putting down roots, building equity, and creating a place that feels permanent.
Understanding how a VA home loan works can help service members and Veterans move through the homebuying process with more confidence.
option available. VA loans are often the most powerful tool, but FHA and other programs may also be considered depending on eligibility and long-term goals.

Understanding how each option works and which one best supports your long-term plans brings clarity to the process from the start.This guide explains what a VA home loan is, who may qualify, how VA financing compares with FHA, and what service members and Veterans should know when buying a new Perry Home.

For additional support, explore Perry Homes’ Veterans and Military Home Buying Benefits page for military homebuyer savings, financing guidance, and move-in-ready home options.

Key Takeaways

• VA home loans can reduce upfront costs with no PMI and low down payment
• Eligible service members and Veterans may use VA financing for new construction home purchases
• FHA loans can help when VA eligibility or property fit is more limited
• Pre-approval and lender guidance help military personnel and veterans to avoid financing delays

What Is a VA Loan?

A VA home loan is a government-backed mortgage created to make homeownership more accessible for eligible military families. While private lenders fund the loan, the U.S. Department of Veterans Affairs guarantees a portion of it, allowing for more flexible and favorable terms.

Eligibility generally includes:

• Active-duty service members
• Veterans
• National Guard and Reserve members
• Eligible surviving spouses

The first step is obtaining a Certificate of Eligibility (COE), which confirms available entitlement and helps prevent delays later in the process.

How Does a VA Home Loan Work for Service Members and Veterans?

The process usually begins with confirming eligibility, speaking with a lender, and obtaining pre-approval before shopping for a home. From there, the buyer chooses a property, completes the loan application, and moves through underwriting, appraisal, and closing.

For Veterans buying a new construction home, early planning is especially important. A lender can explain how military income may be counted, what documentation is needed, and whether a VA home loan pre-approval can help strengthen the process before signing a contract.

Why VA Financing Is Often the Strongest Option

For many eligible military buyers, VA financing removes two major barriers to homeownership: the need for a large down payment and the cost of monthly mortgage insurance. Compared with many other loan options, VA home loans are designed to reward service while supporting long-term affordability.

In most cases, VA loans offer:

• No down payment requirement
• No monthly private mortgage insurance (PMI)
• Competitive interest rates
• Flexible credit and income qualification standards

Cathy Hart, Loan Officer at Crestmark Mortgage says, “You have access to one of the best home financing options available. Lower rates, no PMI, and flexible guidelines are designed to reward your service.”

Debt-to-income guidelines may also be more flexible than conventional financing, which can be especially helpful for buyers balancing student loans, childcare expenses, or other financial obligations.

Military income is also treated favorably when qualifying for a VA loan. Allowances such as BAH (Basic Allowance for Housing), which helps cover housing costs, and BAS (Basic Allowance for Subsistence), which offsets meal expenses, are typically paid in addition to base salary. These tax-free allowances, along with disability income and reserve pay, may count toward qualifying income.

Because certain military allowances are tax-free, lenders may “gross up” that income when calculating qualification. This means the income amount is increased for underwriting purposes to reflect its tax-exempt status, which can improve overall purchasing power and borrowing ability.

When FHA May Be Considered

An FHA loan is insured by the Federal Housing Administration and is not limited to military buyers. It was designed to help borrowers who may not meet conventional loan guidelines, particularly those with moderate credit profiles or limited savings for a large down payment.

FHA financing typically:

• Requires a minimum down payment, often starting around 3.5%
• Includes both upfront and ongoing mortgage insurance
• Offers flexible credit qualification standards compared to many conventional loans

For military buyers who qualify for VA financing, VA is often the stronger long-term financial option due to the absence of monthly PMI. However, FHA may be helpful if VA eligibility is unavailable or if a property does not meet VA appraisal requirements.

VA vs. FHA Key Differences

Both options can support homeownership, but for many eligible military buyers, VA financing provides meaningful savings over time.

Understanding the VA Funding Fee

The VA funding fee is a one-time charge that helps sustain the VA loan program. The amount generally ranges from 0.5% to 3.3% of the total loan amount, depending on:

• Down payment size
• First or subsequent use of the benefit
• Loan type (purchase or refinance)
• Service category

Most borrowers choose to roll this fee into the loan rather than paying it at closing.

Certain borrowers may be exempt from the funding fee, including veterans with a qualifying service-connected disability and eligible surviving spouses.

Beyond the funding fee, standard closing costs still apply. These may include appraisal fees, title expenses, recording fees, and prepaid items such as property taxes and homeowners’ insurance. The VA limits certain lender charges to help protect veteran borrowers.

Using a VA Loan for a New Perry Home

Purchasing a new construction home introduces important timing considerations.

VA appraisals focus on safety, structural soundness, and habitability standards. Because the home must be substantially complete before the appraisal is ordered, planning ahead is essential.
As Kristian “Kat” Kothman, Senior Vice President at Parkstone Mortgage, explains, “It is always a good idea to get pre-qualified before signing a contract so proper VA language and guidelines are addressed from the start.”
Veterans and service members are encouraged to:

• Obtain pre-qualification or pre-approval before signing a contract
• Ensure contract language reflects VA financing
• Begin the formal loan process at least 30 days prior to closing

Extended rate lock options may also be available for longer build timelines, depending on market conditions and loan structure.

Perry Homes Military Incentive

Perry Homes offers a $5,400 military incentive when working with a preferred lending partner.

This incentive may be applied toward:

• Closing costs
• Discount points
• Interest rate buy-downs

In addition, as a thank you for your service, eligible Veterans and active-duty military members may receive an additional 1% off the sales price of their home.

These incentives may apply across financing types when using a preferred lender. Buyers should confirm current program details with a Perry Homes Sales Representative to understand how these offers align with their financing strategy.

A Benefit Earned Through Service

The VA loan remains one of the strongest mortgage products available. With zero down payment in many cases, no monthly PMI, and flexible qualification guidelines, it is specifically structured to reward military service.

When you are ready to take the next step, speak with a Perry Homes Sales Representative to discuss your timeline and goals. Connect with a preferred lending partner to confirm your entitlement and explore the financing strategy that best supports your purchase.

Whether you are building from the ground up or exploring move-in-ready homes, the right guidance can help you use your hard-earned benefit with confidence.