The 5 Most Common VA Loan Questions (Answered for Wisconsin Veterans!)

John Reuter

Feb 193 min read

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For veterans looking to buy a home in Madison, Sun Prairie, and across Dane County, the VA home loan is one of the best benefits available. But many veterans still have questions about how VA loans work, what they qualify for, and how to get started. Today, we're answering the 5 most common VA loan questions to help you navigate your homebuying journey in Wisconsin!

1. Who Qualifies for a VA Loan in Wisconsin?

To qualify for a VA home loan, you must meet at least one of the following service requirements:

Served 90 consecutive days of active service during wartime.
Served 181 days of active service during peacetime.
Served 6 years in the National Guard or Reserves.
Are the surviving spouse of a service member who died in the line of duty or as a result of a service-related disability.

If you're unsure about your eligibility, reach out to a VA loan specialist or your County Veterans Service Office (CVSO) in Dane County, Wisconsin.

2. Do VA Loans Require a Down Payment?

No! One of the biggest advantages of a VA loan is that it offers 100% financing, meaning zero down payment is required. This makes it much easier for veterans to afford homeownership in Madison, Sun Prairie, and Middleton, where home prices are on the rise.

3. What Are the Credit Score Requirements for a VA Loan?

Unlike conventional loans, the VA does not set a minimum credit score. However, most VA lenders prefer a credit score of 580-620 or higher to secure the best interest rates. If your credit score needs improvement, working with a VA loan expert can help you build your credit before applying.

4. What Are the Closing Costs for a VA Loan?

While VA loans do not require a down payment, they still come with closing costs, which usually range between 2-5% of the home’s purchase price. The good news? Some costs can be covered by the seller or rolled into the loan!

Typical VA loan closing costs include:

VA Funding Fee (0.5% - 3.6% of the loan amount, depending on usage and disability status)
Appraisal Fee
Title Fees
Loan Origination Fees

If you're a disabled veteran, you may be eligible for a waiver of the VA Funding Fee, saving you thousands of dollars!

5. Can I Use a VA Loan More Than Once?

Yes! VA loans are a lifetime benefit, meaning you can use them multiple times as long as you have enough VA loan entitlement available. You can even have more than one VA loan at a time if you meet certain requirements.

For example, if you bought a home using a VA loan in Madison but need to relocate to Sun Prairie, you may still be eligible to purchase a second home with your VA loan benefit.