You earned the VA loan benefit. Now let’s make sure you use it right.
The VA home loan program is one of the most powerful financial benefits available to U.S. veterans — but it only works in your favor if you know how to use it. After helping Tennessee veterans close on homes across Nashville, Clarksville, Memphis, and beyond, here are the five tips we share with every borrower before they start the process.
1. Get Your Certificate of Eligibility (COE) Before You Do Anything Else
Your Certificate of Eligibility is the document that proves to lenders you qualify for the VA loan benefit. Without it, the process can’t move forward — so get it first.
The good news: it’s easier to get than most veterans expect. We can pull it for you in minutes through the VA’s automated system. You’ll typically need your DD-214 (Certificate of Release or Discharge from Active Duty) if you’re a veteran, or a statement of service if you’re still active duty.
Don’t wait until you’ve found a house you love to start this step. Get your COE early so there are no delays when it matters most.
2. Know That VA Loans Have No Official Minimum Credit Score — But Lenders Do
The VA itself doesn’t set a minimum credit score requirement. That flexibility is one of the things that makes VA loans so accessible. However, private lenders — including us — do set their own minimums, typically in the 580–620 range.
Here’s what that means for you: if your credit isn’t perfect, don’t count yourself out before talking to a VA specialist. We work with Tennessee veterans across a wide range of credit profiles and can often find options that wouldn’t be available through conventional financing.
If your score needs work, we’ll tell you honestly and give you a clear plan to get there. No runaround.
3. Don’t Open New Credit or Make Large Purchases During the Loan Process
This one trips up more veterans than you’d expect. Once you’ve started the pre-approval process — or even if you’re just thinking about buying soon — avoid:
- Opening new credit cards or lines of credit
- Financing a vehicle
- Making large deposits that can’t be easily explained
- Changing jobs or going from salaried to self-employed
Lenders review your credit and finances right before closing — not just at the beginning. A new car payment or a drop in your credit score from a hard inquiry can change your loan terms or delay closing. Keep things stable until after you have the keys in hand.
4. Understand the VA Funding Fee — and Whether You’re Exempt
The VA Funding Fee is a one-time fee charged by the government to help keep the VA loan program running. For most first-time VA loan users with no down payment, it’s 2.15% of the loan amount. For subsequent use, it rises to 3.3%.
The important thing to know: veterans with a service-connected disability rating are often completely exempt from the funding fee. This can save you thousands of dollars. If you have a disability rating — even a partial one — make sure we know about it before you close.
The funding fee can also be rolled into the loan amount so it doesn’t need to come out of pocket at closing.
5. Use a Lender Who Specializes in VA Loans
VA loans have unique guidelines, requirements, and paperwork that general mortgage lenders don’t deal with every day. Working with a lender who focuses exclusively on VA financing — like our team at Tennessee VA Home Loans — means fewer delays, fewer surprises, and a smoother path to closing.
We know the VA appraisal process, the Minimum Property Requirements (MPRs), the funding fee exemption rules, and how to structure a purchase so sellers can cover your closing costs. That experience makes a real difference.
Ready to Get Started?
Whether you’re just exploring your options or ready to find a home today, we’re here to help. Call us at 615-852-5812, email contact@tnvahomeloans.com, or fill out our quick eligibility form — no obligation, no credit pull, just honest answers from people who know VA loans inside and out.
Evan James Murphy | NMLS #2716465 | Barrett Financial Group, L.L.C. | NMLS #181106 | TN 204577 | This is not a commitment to lend. All loans subject to credit approval.