What Is a VA Loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, certain National Guard and Reserve members, and surviving spouses. The VA does not lend money directly — instead, it guarantees a portion of the loan, which allows approved private lenders like First Colony Mortgage to offer exceptional terms that no other loan program can match.
Here is the short answer: if you have served in the U.S. military and want to buy a home in Utah, a VA loan lets you do it with zero down payment, no private mortgage insurance (PMI), and interest rates that are typically 0.25% to 0.50% lower than conventional loans. It is, dollar for dollar, the best mortgage product available in the United States.
The VA loan program was created as part of the Servicemen’s Readjustment Act of 1944 — commonly known as the GI Bill — to help returning World War II veterans purchase homes. Since then, the VA has guaranteed more than 28 million home loans, and the program continues to be the cornerstone benefit for military homebuyers.
Utah is home to one of the most active military and veteran communities in the nation. With Hill Air Force Base in Davis County, Camp Williams (now officially the William E. Hall Army National Guard Training Site) in Utah County, and tens of thousands of veterans across the Wasatch Front and beyond, VA loans are a critical pathway to homeownership in our state.
VA Loan Benefits: Why It’s the Best Mortgage for Veterans
Zero Down Payment
Buy a home with $0 down. No other government or conventional loan offers this with no income limit.
No PMI — Ever
Save $100–$300+ per month. VA loans never require private mortgage insurance, regardless of equity.
Competitive Rates
VA rates are typically 0.25%–0.50% below conventional rates because the government guarantee reduces lender risk.
No Prepayment Penalty
Pay off your loan early or make extra payments at any time without fees or penalties.
Let’s put numbers to these benefits. On a $400,000 home in Utah, here is what a VA loan saves you compared to a conventional loan:
| Cost | VA Loan | Conventional (5% Down) | You Save |
|---|---|---|---|
| Down payment | $0 | $20,000 | $20,000 |
| Monthly PMI | $0/mo | ~$180/mo | $2,160/yr |
| Interest rate (est.) | 6.25% | 6.625% | ~$100/mo |
| Total first-year savings | — | $23,360+ | |
Beyond the financial advantages, VA loans also offer limited closing costs. The VA restricts certain fees that lenders can charge, and sellers are allowed to pay up to 4% of the loan amount toward the buyer’s closing costs — a significant negotiating advantage in Utah’s competitive housing market.
Additional benefits include:
- No minimum credit score set by the VA — while lenders typically require a 580–620 minimum, the VA itself does not mandate a score, giving more flexibility than FHA or conventional loans.
- Assumable loans — a qualified buyer can take over your VA loan at your existing interest rate, which can be a major selling advantage if rates have risen.
- Lifetime benefit — you can use your VA loan benefit multiple times. There is no “one and done” restriction. After selling or paying off a VA loan, your entitlement can be restored for future purchases.
- Foreclosure avoidance support — the VA has dedicated loan technicians who advocate on your behalf if you ever face financial hardship, helping negotiate with lenders to avoid foreclosure.
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VA Loan Eligibility Requirements
To qualify for a VA loan, you must meet minimum service requirements established by the Department of Veterans Affairs. Eligibility is based on the length and character of your military service.
Who Is Eligible?
- Active-duty service members who have served at least 90 continuous days
- Veterans who meet minimum active-duty service requirements based on when they served
- National Guard and Reserve members with at least 6 years of service (or 90 days of active-duty service under Title 10 orders)
- Surviving spouses of service members who died in the line of duty or from a service-connected disability (who have not remarried, or remarried after age 57)
Service Length Requirements
| Service Period | Required Active Duty |
|---|---|
| Gulf War era (Aug 2, 1990 – present) | 24 months continuous, or 90 days with qualifying discharge |
| Post-Vietnam (May 8, 1975 – Aug 1, 1990) | 24 months or full period called to active duty |
| Vietnam era (Aug 5, 1964 – May 7, 1975) | 90 days |
| Korean War (June 27, 1950 – Jan 31, 1955) | 90 days |
| World War II (Sept 16, 1940 – July 25, 1947) | 90 days |
| National Guard / Reserves | 6 years of service, or 90 days active duty under Title 10 |
Certificate of Eligibility (COE)
Before applying for a VA loan, you need a Certificate of Eligibility (COE) from the VA. This document verifies your military service and confirms your entitlement to VA loan benefits. As your lender, I can pull your COE electronically through the VA’s Web LGY system — most of the time it takes just a few minutes.
You can also request your COE through:
- VA.gov — apply online through the eBenefits portal
- By mail — submit VA Form 26-1880 to the VA Eligibility Center in Winston-Salem, NC
- Through your lender — the fastest option. I pull COEs for clients regularly and can usually have it within one business day.
Documents you may need: DD-214 (discharge papers) for veterans, a statement of service letter for active-duty members, or NGB Form 22 for National Guard members.
VA Loan Limits in Utah (2024–2026)
Here is great news: for veterans with full entitlement, there is no VA loan limit. The Blue Water Navy Vietnam Veterans Act of 2019 eliminated loan limits for borrowers with full entitlement, effective January 1, 2020. This means you can borrow as much as a lender is willing to approve based on your income, credit, and assets — all with zero down payment.
VA loan limits only apply to borrowers with reduced entitlement — for example, if you already have an active VA loan on another property or have had a VA loan foreclosure. In those cases, the 2025 conforming loan limit for all Utah counties is $806,500. Some higher-cost areas may qualify for increased limits.
What does “full entitlement” mean? You have full entitlement if you have never used your VA loan benefit before, or if you previously used it but sold the home and had your entitlement restored. If you currently have a VA loan on another property, you have reduced (or “partial”) entitlement, and loan limits will apply to the second loan.
Utah’s median home price varies significantly by county. Along the Wasatch Front, median prices in Salt Lake, Utah, and Davis counties range from approximately $430,000 to $550,000 as of mid-2025. Even with these prices, VA loans with full entitlement require zero down payment, making homeownership accessible to veterans across the state.
If you are exploring your options in the Utah market, take a look at our Utah mortgage guide for a broader overview of programs available in the state.
VA Funding Fee Breakdown
The VA funding fee is a one-time charge paid to the Department of Veterans Affairs. It helps sustain the VA loan program so it can continue serving future generations of veterans. The fee varies based on your down payment amount, whether it is your first time using the benefit, and your service category.
2024–2025 VA Funding Fee Rates
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (zero down) | 2.15% | 3.30% |
| 5%–9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Example: On a $400,000 VA loan with zero down (first use), the funding fee would be $400,000 × 2.15% = $8,600. This fee can be rolled into the loan amount so you do not need to pay it out of pocket at closing.
Who Is Exempt From the Funding Fee?
- Veterans receiving VA disability compensation (any rating)
- Purple Heart recipients currently serving on active duty
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Veterans who would be eligible for disability compensation but receive retirement pay instead
If you are exempt, the funding fee is waived entirely — saving you thousands of dollars. This is one reason why it is critical to have your VA disability rating finalized before closing on your home. Even if your claim is pending, an experienced VA lender can help you navigate the timing.
VA vs. FHA vs. Conventional Loans: Side-by-Side Comparison
How does a VA loan stack up against other popular mortgage options in Utah? This comparison makes the case clearly. For a deeper dive on these alternatives, see our guides on FHA loans in Utah and conventional loans in Utah.
| Feature | VA Loan | FHA Loan | Conventional |
|---|---|---|---|
| Down payment | 0% | 3.5% | 3%–20% |
| Mortgage insurance | None | MIP for life of loan (with <10% down) | PMI until 20% equity |
| Credit score minimum | No VA minimum (lenders: 580–620) | 580 (3.5% down); 500 (10% down) | 620–680 |
| Interest rates | Lowest (gov. guarantee) | Low | Market rate |
| Loan limits (full entitlement) | No limit | $524,225 (most UT counties) | $806,500 (conforming) |
| Seller concessions | Up to 4% | Up to 6% | 3%–9% (varies by LTV) |
| Assumable | Yes | Yes | No |
| Prepayment penalty | None | None | None |
| Eligibility | Veterans, active duty, surviving spouses | Any qualified buyer | Any qualified buyer |
| Funding/upfront fee | 2.15% (can be waived) | 1.75% UFMIP | None |
The bottom line: if you are eligible for a VA loan, it is almost always the best option. The combination of zero down payment, no PMI, and lower interest rates is unmatched. Even with the funding fee, the total cost of a VA loan is typically thousands of dollars less than comparable FHA or conventional loans over the life of the mortgage.
The VA Loan Process: Step by Step
Buying a home with a VA loan in Utah follows a straightforward process. Here is what to expect from start to closing day.
Get Pre-Approved
Contact a VA-approved lender (like me) to review your finances, pull your credit, and obtain your Certificate of Eligibility. Pre-approval tells you exactly how much home you can afford and makes your offers stronger with sellers.
Find Your Home
Work with a real estate agent to find a home in Utah that meets your needs. VA loans can be used for single-family homes, condos (in VA-approved projects), and multi-unit properties up to four units — as long as you live in one of them.
Make an Offer & Go Under Contract
Submit a competitive offer. Your pre-approval letter from a VA-experienced lender demonstrates to sellers that you are a serious, qualified buyer. VA offers are just as strong as conventional ones — and in Utah’s market, a well-prepared VA buyer wins deals every day.
VA Appraisal
The VA assigns a VA-approved appraiser to evaluate the home. The appraisal serves two purposes: it determines fair market value and ensures the property meets VA Minimum Property Requirements (MPRs) for safety and livability. This protects you from overpaying or buying a home with significant issues.
Underwriting & Conditions
Your loan file goes through underwriting, where the lender verifies your income, employment, credit, and assets. You may need to provide additional documents. I keep this process moving efficiently so there are no surprises or delays.
Clear to Close & Closing Day
Once underwriting issues a “clear to close,” you sign final documents, the loan funds, and you receive the keys to your new Utah home. VA loans in Utah typically close in 30–45 days from contract to keys.
Throughout every step, I provide direct communication and hands-on guidance. You will never be passed off to a call center or left wondering where things stand. Read more about my approach on my loan officer page.
VA IRRRL Streamline Refinance
Already have a VA loan? The VA Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline Refinance, lets you refinance your existing VA loan with minimal paperwork and hassle.
IRRRL Benefits
- No appraisal required in most cases
- No income verification or credit underwriting (lender may still check credit)
- Lower funding fee — only 0.5% of the loan amount
- Can be done with no out-of-pocket costs — closing costs can be rolled into the new loan
- Must result in a net tangible benefit — lower rate, lower payment, or moving from an ARM to a fixed rate
The IRRRL is designed to save you money. If rates have dropped since you closed your current VA loan, this is one of the fastest and most cost-effective refinance options available. You must have made at least six monthly payments and 210 days must have passed since your first payment.
For a complete look at all refinance options, including VA cash-out refinance, visit our Utah refinance guide.
Check Today’s VA Rates
Whether you are buying or refinancing, let’s review your options together.
Utah-Specific VA Resources
Utah has a strong military presence and extensive support infrastructure for veterans. Here are key resources for Utah veterans pursuing VA homeownership.
VA Salt Lake City Regional Office
550 Foothill Drive, Salt Lake City, UT 84158. Handles VA benefit claims, COE requests, and loan-related inquiries for all Utah veterans. Phone: (800) 827-1000.
Hill Air Force Base
Located in northern Davis County, Hill AFB is Utah’s largest single-site employer with over 20,000 military and civilian personnel. Active-duty personnel stationed at Hill are eligible for VA loans during their service.
Camp Williams (UTNG)
The Utah Army National Guard’s primary training installation in Bluffdale/Riverton. Guard members with 6+ years of service or 90 days of active-duty orders qualify for VA loan benefits.
Utah Dept. of Veterans & Military Affairs
Provides state-level veteran services including employment assistance, education benefits, and connection to federal VA resources. Offices throughout the state.
Utah Property Tax Exemptions for Disabled Veterans
Utah offers property tax exemptions for veterans with a VA disability rating. Veterans rated at 10% or higher may qualify for a partial exemption on their primary residence. Veterans with a 100% disability rating may be exempt from property taxes entirely. This benefit, combined with a VA loan’s zero-down and no-PMI structure, makes homeownership remarkably affordable for disabled veterans in Utah.
For more on how to combine these benefits when purchasing your home in Utah, read our in-depth VA loans guide for Utah buyers.
Frequently Asked Questions About VA Loans in Utah
Yes. VA loans allow eligible veterans, active-duty service members, and surviving spouses to purchase a home in Utah with zero down payment. For borrowers with full entitlement, there is no loan limit — meaning you can buy at any price point without a down payment, as long as you meet income and credit qualifications. This applies to homes throughout Utah, from Salt Lake City to St. George to Logan.
Eligibility depends on when and how you served. Generally, you need 90 consecutive days of active service during wartime, 181 days during peacetime, 24 months for post-1980 service (with exceptions), or 6 years of National Guard or Reserve service. Surviving spouses of service members who died in the line of duty or from a service-connected disability may also qualify. A Certificate of Eligibility (COE) from the VA verifies your entitlement.
No. VA loans never require private mortgage insurance, regardless of your down payment amount or loan-to-value ratio. This is one of the most significant financial advantages of the VA loan program. On a $400,000 home, skipping PMI can save you $150 to $300 or more per month compared to a conventional or FHA loan with less than 20% down. Over the life of the loan, that adds up to tens of thousands of dollars in savings.
The VA funding fee is a one-time fee that helps sustain the VA loan program. For first-time use with zero down, the fee is 2.15% of the loan amount. On subsequent uses, it increases to 3.30%. Making a down payment reduces the fee — 5% down lowers it to 1.50%, and 10% down reduces it to 1.25%. The fee can be financed into the loan so you do not need cash out of pocket. Importantly, the fee is completely waived for veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving DIC benefits.
Why Work With Felix Vivanco for Your Utah VA Loan
Not every loan officer understands VA loans. The VA appraisal process, entitlement calculations, COE issues, and funding fee exemptions require specific experience that many lenders simply do not have. A misstep can delay your closing, cost you money, or even cause a deal to fall through.
Here is what you get when you work with me:
- VA loan specialization — I work with VA buyers regularly and understand the nuances of the program inside and out, from COE retrieval to entitlement restoration.
- Direct communication — you text me, call me, and email me directly. No call centers, no being transferred. My cell is (801) 919-8110.
- Bilingual service — I serve English and Spanish-speaking veterans throughout Utah. Hablo español y estoy aquí para ayudarte.
- Local market knowledge — based in Provo, I work with buyers across the Wasatch Front and throughout Utah. I know the appraisers, the title companies, and the local market dynamics that affect your transaction.
- Speed — I pull your COE the same day, push for fast appraisals, and keep your file moving through underwriting. My VA loans consistently close on time.
- First Colony Mortgage backing — I originate through First Colony Mortgage (NMLS #3112), a direct VA-approved lender with in-house underwriting. That means faster decisions and competitive pricing.
I became a loan officer because I believe homeownership should be accessible to everyone who has earned it — and no one has earned it more than the men and women who have served our country. Let me put your VA benefit to work.
Start Your VA Home Loan Today
Get pre-approved in minutes. Zero down, no PMI, competitive rates — your service earned it.
Helping Utah veterans, active-duty service members, and families achieve homeownership with VA loans, FHA, conventional, and new construction financing. Bilingual: English & Spanish.