VA loans in Luray, Virginia — no down payment for veterans
Luray VA Loans

VA Loans in Luray, Virginia: No Down Payment, No Mortgage Insurance

In Luray, the VA loan is the mortgage benefit earned by service: the guaranty takes the place of the down payment, there is no mortgage insurance premium, the seller can pay closing costs, and the loan can be assumed later. The pieces that decide the file are eligibility, entitlement, the funding fee, and residual income.

Current Program Snapshot

Current VA guidelines, updated from one source.

Treat this block as the program’s fixed points rather than an offer: the leverage, the fee tiers, the ratio guideline, and the residual-income figures by family size, each read live from Lendmire’s guideline source. The credit floor shown is a wholesale overlay, since VA itself sets none.

Down Payment
0%

100% financing with full entitlement

0% down is the program’s defining term: a buyer with full entitlement finances up to 100% of the lesser of price and value, the guaranty replaces the down payment, and the funding fee can be added on top of the loan rather than paid in cash.

Mortgage Insurance
None

No monthly premium, no upfront premium

There is no monthly mortgage insurance and no upfront premium on a VA loan at any leverage; the guaranty does the work that private mortgage insurance or FHA’s premiums do elsewhere, and the funding fee is the only program charge.

Funding Fee
2.15% fee

First use; 3.3% after first use; exempt for many disabled veterans

VA charges a funding fee instead of mortgage insurance: 2.15% on a first-use purchase, 3.3% on a subsequent use, less with a down payment of five percent or more, and nothing for the exempt groups. The ladder below shows every tier, including the cash-out and rate-reduction refinance fees.

Debt Ratio
41% guide

Residual income decides the file

Two tests, one guideline: the total-debt ratio is measured against 41%, and residual income is measured against the South table below for the household’s size. VA tells lenders the residual-income test carries more weight, which is why a modest ratio does not approve a thin budget.

VA funding fee — by loan type, first or subsequent use, and down payment (financed into the loan or paid at closing; exemptions below)
Loan typeUseDown paymentFee
Purchase or constructionFirst useless than 5% down2.15%
Purchase or constructionFirst use5% to 9.99% down1.5%
Purchase or constructionFirst use10% or more down1.25%
Purchase or constructionAfter first useless than 5% down3.3%
Purchase or constructionAfter first use5% to 9.99% down1.5%
Purchase or constructionAfter first use10% or more down1.25%
Cash-out refinanceFirst useAny2.15%
Cash-out refinanceAfter first useAny3.3%
IRRRLAnyAny0.5%
Manufactured home (not permanently affixed)AnyAny1%
Loan assumptionAnyAny0.5%
Vendee loanAnyAny2.25%
VA residual income guideline for Virginia (the South region) on loans of $80,000 and above — the monthly income left after housing, debts, taxes and maintenance, by family size
Family sizeResidual income
1$441
2$738
3$889
4$1,003
5$1,039
Each additional member, up to seven+ $80

Exempt from the funding fee: veterans receiving VA compensation for a service-connected disability, those eligible for it but receiving retirement or active-duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation, service members with a pre-discharge claim rating, and active-duty service members who have received the Purple Heart. VA sets no minimum credit score; the wholesale programs behind these pages start at a 580 decision score and serve loan amounts up to $4,000,000, including loans above the conforming limit with full entitlement.

Refinances: cash-out to 100% loan-to-value after seasoning of 210 days and six payments with a net tangible benefit; rate-reduction refinances of an existing VA loan at a 0.5% fee without a VA appraisal. Current VA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · no VA loan limit with full entitlement · loans are assumable · no prepayment penalty · Lendmire is not affiliated with the Department of Veterans Affairs.

Program Notice

For informational purposes only. This is not a commitment to lend or extend credit, an offer, or a quote. Program parameters shown are VA guidelines and wholesale lender overlays, are subject to change without notice, and every figure depends on the borrower, the entitlement, the property, the selected program, and full underwriting. Lendmire is a mortgage broker, not a lender, and is not affiliated with or endorsed by the Department of Veterans Affairs. Licensed in sixteen states for consumer mortgages. NMLS #2371349.

Luray VA Loan Guide

What a VA loan is — and how the file is qualified.

To follow a Luray VA file, follow four things in order: the guaranty, the eligibility and entitlement that unlock it, the funding fee that funds it, and the residual-income standard that qualifies it. Each rule below comes with the reason behind it.

For the program overview, see Lendmire’s VA loan program, or the statewide guide at VA Loans in Virginia; to request a Certificate of Eligibility, see VA.gov.

01.

The guaranty replaces the down payment

VA backs a quarter of the loan for a borrower with full entitlement, which gives the lender the same protection a sizable down payment would. That is why a Luray purchase can close with nothing down and no mortgage insurance, and why there is no VA loan limit when entitlement is full: the backing scales with the loan.

02.

Eligibility, entitlement, and the COE

The Certificate of Eligibility is the document that opens the file. It states the entitlement available, whether the funding fee is waived, and any prior use of the benefit. A Luray lender can usually pull it within the VA system from a DD-214 or a statement of service, and VA.gov issues it directly as well.

03.

The funding fee, and who is exempt

The fee scales with use and with the down payment: a first use with nothing down pays the base tier, a later use pays more, and five or ten percent down lowers either. Financed, it adds to the loan balance rather than the cash to close, which is the usual choice on a Luray purchase; a veteran receiving, or eligible to receive, compensation for a service-connected disability pays none of it.

04.

Residual income over ratios

VA qualifies a household on what is left, not only on what is owed: residual income is the monthly income remaining after the proposed housing payment, other debts, taxes, and an allowance for maintenance and utilities, measured against a table by family size and region. A Luray family must meet the table for its size.

The Core Calculation
Price − down payment = base loan; base loan + funding fee (unless exempt) = total loan; principal and interest + taxes, insurance and dues = payment, with no mortgage insurance

A lender runs exactly this math on a Luray file, with one refinement the page cannot make: underwriting also subtracts taxes, maintenance, and utilities before measuring residual income, so the rough residual here will read higher than the lender’s. The price, the fee tier, and the locked rate are the moving parts.

Luray Market Context

Where Luray’s veterans and service members buy — and how VA fits.

A VA loan is sized against a local market, and these are Luray’s numbers from the U.S. Census Bureau: how many households own, what a typical home is worth, and what households earn. They set the scale of the funding fee and the payment before any file is written.

Citywide figures provide general market context, not an appraisal or an income calculation. Two veterans with identical entitlement can see different files here: one buying at the median clears the residual-income table with room, another stretching above it needs the ratio justified. The market sets the spread.

4,827Population (ACS 2020–2024)
$253,900Median owner-occupied home value (ACS 2020–2024)
65.2%Households that own their home (ACS 2020–2024)
$50,150Median household income (ACS 2020–2024)

Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.

Luray Submarkets

Distinct Luray neighborhoods, distinct VA files.

The house decides the file as much as the borrower. These Luray submarkets differ in the property types VA accepts, the condition questions the appraisal raises, and the prices a typical buyer carries.

01.

Workforce neighborhoods

The year-round Luray workforce is the program’s constituency: nothing down, no mortgage insurance, and a payment that residual income shows a local income can carry. These neighborhoods are where the benefit fits the market best. About 35% of Luray’s households rent — roughly 808 renter households on the latest Census estimate.

02.

Year-round primary residences

In a resort market the whole VA story is the primary residence: the Luray veteran who lives there full time qualifies on the certificate, residual income, and the appraisal; the vacation buyer does not qualify at all. Roughly 1,515 Luray households own their homes on the latest Census estimate — 65% of all households, the pool a VA purchase joins.

03.

Higher-value homes

A high-value Luray primary residence can be a VA jumbo: the guaranty scales with the loan, the lender waives the down payment with full entitlement, and the comparison with a conventional jumbo is worth running because the conventional loan asks for a large down payment and VA does not. Luray is home to about 4.8K people.

04.

Second homes and vacation condominiums

Luray’s second homes and vacation condominiums are not VA purchases: the program requires a principal residence occupied within a reasonable time after closing. A buyer who will not live there year-round is directed to a conventional second-home loan. The median owner-occupied home value in Luray runs near $253,900 on the latest Census estimate.

05.

Waterfront and view homes

Lakefront and beachfront Luray homes are eligible as principal residences; the appraisal, with its thinner set of comparable sales, and the flood determination are the two steps that take longer there. On a home at Luray’s median value, a VA purchase with full entitlement needs no down payment at all — the funding fee on the full $253,900 is the program’s cost, and it can be financed.

06.

Condominium projects

A Luray condominium is a VA purchase only in a VA-approved project, and resort projects with heavy rental use often are not approved. The lender settles the question before the appraisal, and submission for approval takes the association’s cooperation. Median household income in Luray sits near $50,150 on the latest Census estimate.

What the program accepts is the same everywhere in Luray: houses, condominiums in VA-approved projects, planned developments, manufactured homes that meet VA’s rules, and owner-occupied homes of up to four units. What it declines is also the same: second homes and investment property.

How Luray Veterans Use VA

Four ways Luray veterans put the VA benefit to work.

Because VA backs part of every loan, it fits the Luray veteran who has the income for the payment but would rather keep the savings than spend them on a down payment and insurance. Four examples follow.

House hacking

Buy a small multi-unit home and live in one unit

This is where the benefit stretches furthest: a Luray veteran puts nothing down on two to four units, moves into one, and qualifies with the documented rent from the rest counted as VA allows, while the appraiser checks every unit against the property requirements.

Cash-out

Take cash out of a home with equity

Cash-out on VA is a full refinance of the first mortgage at the leverage in the snapshot, after the later of the seasoning period or the required payments, with the funding fee at the cash-out tier. A Luray owner weighs it against a home equity line, which keeps the existing first mortgage in place.

First purchase

Buy a first home with nothing down

For a first purchase in Luray, VA pairs no down payment with no mortgage insurance and a residual-income test that reads the whole household budget; the file closes on the certificate, the appraisal, the income, and the funding fee tier.

Condominium

Buy a condominium in an approved project

VA keeps its own list of approved condominium projects, and a Luray unit in one of them is financed like a house with the association’s dues added to the ratios and the residual-income math. The appraisal covers the project as well as the unit.

VA Payment Estimate

Estimate the VA payment on a Luray price before requesting a quote.

Enter a Luray price, any down payment, and the funding fee tier, choose a term, and the calculator returns the base loan, the fee financed, the total loan, principal and interest, taxes and insurance, and, with income and family size entered, the ratio and a rough residual income against VA’s table. The rate field holds the weekly Freddie Mac benchmark as a market reference, never a VA quote.

Editable VA scenario

Luray VA payment estimate

The starting figures are a typical Luray price with nothing down and a first-use fee. Replace them with yours.

Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA loan quote.

—Funding fee applied to this scenario.
—VA residual income guideline for this family size and region.

Illustrative starting assumptions: a $255,000 price near Luray’s median owner-occupied home value, no down payment with full entitlement, a first-use funding fee financed into the loan, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Virginia (U.S. Census Bureau). Every field is editable.

Estimated total monthly housing payment
—
Principal and interest on the loan with the funding fee financed, plus taxes, insurance and dues. No mortgage insurance.
—Down payment
—Base loan amount
—Funding fee, financed
—Total loan amount
—Principal and interest
—Taxes, insurance and dues
—Debt-to-income ratio (with income entered)
—Rough residual income after housing and debts (with income entered)
—Where the file lands

Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a VA loan quote; your rate is set by the lender at lock. The funding fee follows VA’s published table for the use and down payment entered; the residual-income figure is VA’s guideline for the region and family size, and the rough residual shown subtracts only the housing payment and the debts entered, while VA also deducts taxes, maintenance and utilities. Taxes, insurance and dues are editable estimates; closing costs are not included. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of the Department of Veterans Affairs.

VA vs. the Alternatives

Same veteran, three very different closings.

Choosing among VA, FHA, and conventional in Luray is really choosing an insurance structure and a down payment at the same time. Each is laid out below with the buyer it fits.

Structure Comparison

VA, FHA, or conventional.

VA with full entitlement

No down payment with full entitlement, no mortgage insurance at any leverage, a one-time funding fee that can be financed or waived, residual-income underwriting, no loan limit with full entitlement, and a loan that can be assumed. The cost is the funding fee, and the condition is eligibility.

FHA with the minimum investment

FHA asks for a small minimum investment, accepts a forgiving decision score, and charges an upfront premium plus an annual premium that lasts for the term at full leverage. For a Luray buyer without VA eligibility it is the nearest substitute; with eligibility it is the costlier route. See Lendmire’s FHA loan program.

Conventional with private mortgage insurance

Conventional financing asks for a down payment and a higher score, in exchange for insurance that cancels and no funding fee. A Luray veteran with a large down payment, where the funding fee falls to its lowest tier and conventional insurance falls away, should see both programs run on the same numbers. See Lendmire’s conventional loan program.

Where each one fits

Which program fits best depends on the borrower’s numbers once eligibility is known. VA can come out ahead with a COE and full entitlement, conventional can for a veteran with twenty percent down and no fee exemption, and FHA is the fallback where the benefit is unavailable. The comparison is run on the actual numbers, in writing.

Typical File Components

What to prepare for a Luray scenario review.

The paperwork is the standard mortgage set with the service record on top; here is what a Luray scenario review typically draws on.

Housing payment historyTwo years of rent or mortgage payments by statement or canceled check where the credit report does not show them; the recent housing record carries real weight.
Certificate of EligibilityIssued by VA online, or pulled by the lender from VA’s system; it states the entitlement available, any prior use of the benefit, and whether the funding fee is waived.
Asset statementsBank statements covering the closing costs and any reserves the file calls for, with unusual deposits explained and gifts documented by letter and transfer.
Income documentationPay stubs or a current LES, two years of W-2s, and tax returns for self-employment or other income, so the lender can show the income is stable and likely to continue.
Government photo IDUnexpired identification for each borrower whose income or credit is used, so identity can be verified and the required screening completed before closing.
Property detailsAddress, property type, unit count, and the association contact for a condominium, so the VA project approval is confirmed before the appraisal is requested.

This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, entitlement, and the income picture. Nothing here is legal or tax advice.

Luray File Considerations

Local details that can change the loan.

What moves a Luray file most often: entitlement, the funding fee and its exemptions, the appraisal and the Notice of Value, the project approval, residual income, seasoning after a credit event, and occupancy.

Before You Move Forward

Use these checks to keep the Luray file clean and fundable.

The list is short because the program is: entitlement, the fee, and the property decide most Luray files before income is even opened.

  • Confirm the entitlement: the COE states the entitlement available; full entitlement carries no loan limit.
  • Know the fee: the fee can be financed, paid at closing, or paid by the seller.
  • Plan the exit: the seller should obtain a release of liability.
i.

Full or remaining entitlement

Two veterans, two COEs, two different loans: one with full entitlement buys above the conforming limit with nothing down, the other with an earlier loan still open brings a down payment on the uncovered portion. A Luray loan officer reads the certificate before anything is sized.

ii.

The funding fee tier and the exemptions

The fee depends on whether the benefit has been used before and on the down payment, and it is waived for veterans receiving compensation for a service-connected disability, surviving spouses receiving DIC, active-duty Purple Heart recipients, and service members rated before discharge. On a Luray file the tier is confirmed from the COE.

iii.

Assumption and release of liability

Years after closing, the assumption clause can matter more than the rate: a Luray buyer may take over the loan with the lender’s approval. The original veteran should ask for a release of liability and, where the buyer is also a veteran, a substitution of entitlement.

iv.

Occupancy and the reasonable-time rule

A VA loan finances a principal residence: the veteran certifies an intent to occupy within a reasonable time after closing, which VA generally reads as a couple of months. The usual Luray exception is military life itself, where a spouse can occupy for a member on orders elsewhere.

v.

Residual income and the ratio guideline

Residual income is measured after the housing payment, other debts, taxes, and VA’s allowance for maintenance and utilities, against a table by region and family size. A Luray household must meet the figure for its size, and a ratio above VA’s guideline needs residual income well above the table or a documented justification.

A Clear Process

From a Luray Certificate of Eligibility to keys in hand.

A VA purchase runs in a fixed order: certificate and pre-approval on income and residual income, contract and VA appraisal with the Notice of Value, underwriting with the fee tier confirmed, and closing with the fee financed, paid, or waived for exempt borrowers. Here is that order for a Luray buyer.

i.

COE and pre-approval

The first conversation settles the shape: whether entitlement is full, whether the fee applies, what residual income supports, and whether VA is the right program next to FHA and conventional for the Luray purchase. The lender can pull the COE directly.

ii.

Contract and appraisal

The Luray contract sets the price and the concessions; the appraisal sets the value and the condition. Both feed the loan amount, and the lender confirms the project approval and the wood-destroying insect inspection where VA requires one for the state before underwriting begins.

iii.

Underwriting

The file is scored by the automated system or underwritten manually, with income, assets, credit, and residual income documented. Seasoning after a credit event is confirmed from the discharge or transfer papers, the funding fee tier is confirmed from the COE, and the ratio is measured against VA’s guideline.

iv.

Closing

Closing is where the fee becomes real: financed into the total loan or paid at the table, with the seller’s concessions applied and the fees a veteran may not pay removed from the sheet. The Luray buyer takes the keys and VA backs the lender.

Why Lendmire

A brokerage that puts the benefit to work.

A single lender recommends its own program; a brokerage with several wholesale programs and all three routes can say which one actually costs a Luray veteran less, and show the arithmetic.

i.

Three programs, one set of numbers

Before any recommendation, VA, FHA, and conventional are run on the same Luray price, income, and down payment. The buyer sees the payment, the insurance or fee line, and the cash to close for each, and the choice follows the figures.

ii.

The fee and the entitlement explained before the offer

The certificate fixes two things a buyer should know before signing a contract: the funding fee tier and the entitlement available. Lendmire states both for the Luray purchase and explains the exemption and the refund rules where they apply.

iii.

Licensed, consumer-purpose, in writing

What this page shows are VA’s parameters and the wholesale overlays; what a specific Luray loan gets is a written set of terms from a licensed loan officer after the review. Lendmire is a broker, never the lender, and has no affiliation with the Department of Veterans Affairs.

Client Experiences

Trusted by veterans & families alike.

Verified Google Reviews
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Joseph Edwards
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Highly recommend, Cori was awesome to work with and had great communication. She was very helpful and got us through everything to close.
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K Star Real Estate LLC
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Cori on the Lendmire team was phenomenal! She was two steps ahead through the entire process of purchasing an investment property. She was solving problems before anyone knew there could have been a problem. Great communication, great availability, all around a great person to work with. She is the reason our deal closed. We look forward to working with her again in the very near future!
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Tristen Mosley
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Alayna Pack is very knowledgeable, helpful, communicative, and transparent. Highly recommend.
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J Mills
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Leigh is absolutely the best! Professional yet personable, diligent, and incredibly responsive. She was with us throughout the process and helped us secure a competitive rate. Leigh went above and beyond to make sure all of our questions were answered, and offered deep explanations for questions that arose. We felt supported through the entire process and trust her expertise completely. 5 stars!
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Tyjuana Atkinson
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Awesome experience!!!!!!! Leigh had our best interest at heart from beginning to the end.
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Anna Hernandez
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Curt Galbraith was a Great Loan Originator and goes above and beyond for his clients, working with him on this transaction was so easy. I would recommend him for any Buyers looking to Buyer or Refinance. Great Service all around
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RustynKelli Shelton
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Brenda is absolutely one of the most professional hardworking lenders we have ever dealt with; she’s helped clients of ours and now us personally. Her communication is top notch, you never feel like you’re forgotten or left to figure things out on your own, great to answer questions and explain each step. Definitely recommend Brenda to walk along beside you in your purchase process!
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Isaac Alonzo
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As a first time home buyer Curt Galbraith was a wonderful man, he explained everything i had questions about and took time out of his day to meet up late at nights after my night shift, to explain things to me .Over all Curt was really helpful all through closing and always there when you needed him. Thank you so much Curt for helping me through out the whole process.
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Jason Fleck
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Brenda, Samantha and the Lendmire team were absolutely fantastic to work with. We had to jump through some major hurdles to get this home done, which most lenders would have gave up, they kept pushing to get this home done for us. I would absolutely recommend Brenda and team to anybody. Thank you so much for your commitment, communication, perseverance through the whole process. Jason & Brooke
Questions Luray Veterans Ask

Luray VA loan FAQs

The questions below come up on nearly every Luray VA conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.

What is a VA loan, and who is it for?

VA runs a guaranty program for veterans’ home loans; it is not a lender. A Luray buyer applies through a lender or broker, the lender underwrites to VA’s rules, and VA stands behind part of the loan. Purchases, cash-out refinances, and rate-reduction refinances of existing VA loans are all inside it.

Who is eligible for a VA loan in Luray?

Most veterans with an honorable or general discharge can qualify, as can current service members past the minimum period, Guard and Reserve members with enough qualifying service, and eligible surviving spouses. Other-than-honorable discharges can disqualify, and VA reviews them case by case.

How do I get a Certificate of Eligibility?

The lender is usually the fastest path, and VA.gov the next. The certificate shows available entitlement, prior use of the benefit, and any funding fee exemption, which is why a Luray loan officer wants it before sizing the loan.

What is the VA funding fee, and do I have to pay it?

It depends on your status. Disabled veterans receiving compensation and the other exempt groups pay no fee; other borrowers pay the tier in the snapshot, which is lower on a first use and with a larger down payment. Most Luray buyers finance it rather than pay cash.

Is there a VA loan limit in Luray?

No limit with full entitlement, which is why a VA jumbo with nothing down exists. Partial entitlement brings the county conforming figure into the math; the loan officer confirms the current figure and the down payment it implies.

How does a VA refinance work?

The IRRRL is the simplest: a reduced fee, no appraisal in most cases, a net tangible benefit, and the existing loan’s payment history as the test. The cash-out refinance takes an appraisal, full underwriting, seasoning, and the cash-out fee tier.

What does a VA appraisal check?

Both the value and VA’s property standards. Peeling paint on older homes, roof damage, missing handrails, or a failing system can bring required repairs, usually settled by the seller before closing on a Luray purchase, and a wood-destroying insect inspection is required where VA calls for one.

Do I need a down payment for a VA loan?

No, in the ordinary Luray case. The three exceptions are a price above the appraised value, which is paid in cash or renegotiated; remaining entitlement, where the lender may ask for a down payment on the uncovered portion; and a voluntary down payment to reach a lower fee tier.

Does a VA loan have mortgage insurance?

No monthly premium and no upfront premium. A Luray buyer comparing VA with FHA sees the premium line disappear from the payment; comparing with conventional, the private insurance disappears as well.

Do I have to live in the home to use a VA loan?

VA backs owner-occupied homes only. Occupancy is certified at closing, with allowances for deployment and remote duty; a buyer who will never live in the home cannot use the benefit for it.

Get Started

Run the Luray VA numbers, then get the terms in writing.

When you are ready, a Luray review sizes the loan, settles the program, and produces written terms. Nothing on this page commits anyone to lend.