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The buyer's advantage
Why the VA loan is worth using properly
No down payment and no private mortgage insurance is a combination no civilian buyer has access to. On a typical Okaloosa County purchase, the PMI saving alone is meaningful every single month for the life of the loan.
It is also, in my experience, the benefit most often left partly on the table — because families start the paperwork late, because a listing agent talks a seller out of a VA offer on bad information, or because nobody told the buyer they were exempt from the funding fee.
Getting your Certificate of Eligibility
There are three routes, and one of them is much faster than the others.
- Through your lender. Most lenders can pull your COE electronically through VA's system in minutes. This is almost always the fastest option and it is the one I would start with.
- Online through VA.gov.
- By mail using VA Form 26-1880 to your regional loan center. Slowest by a wide margin.
What you need depends on your status. Active duty: a statement of service signed by your commander, adjutant or personnel officer, showing name, Social Security number, date of birth, duty entry date, any lost time and the command name. Veterans: your DD214. Guard and Reserve who were activated: DD214 or activation documents. Guard and Reserve never activated: retirement points statements (NGB Forms 22 and 23) plus proof of honorable service.
VA loan questions
What military buyers in Okaloosa County ask me most.
01
Ask your lender. Most lenders can pull a COE electronically through VA's system in minutes. Applying online through VA.gov is the next fastest; mailing VA Form 26-1880 to your regional loan center is considerably slower.
02
Not necessarily. You are exempt if you receive VA compensation for a service-connected disability, if you are eligible for it but take retirement or active-duty pay instead, if you are a surviving spouse receiving Dependency and Indemnity Compensation, if you have a proposed or memorandum rating before closing, or if you are active duty with evidence of a Purple Heart. Tell your lender before closing.
03
Yes. Entitlement can be restored or used more than once, though the funding fee is higher for subsequent use unless you are exempt. Your lender can tell you exactly how much entitlement you have available.
04
It should not, and in this market it usually does not — military buyers are a normal and expected part of the Okaloosa County market and most listing agents here are comfortable with VA financing. Where it can matter is on a property with condition issues, which is a reason to look at condition early rather than avoid the loan.
05
Can I buy a condo on the beach with a VA loan?
Only if the condominium project itself is VA-approved, which is separate from your own eligibility. A significant share of beach and Destin-corridor inventory is not. Check project approval before you get attached to a unit.
The funding fee — and who does not pay it
The VA funding fee is a one-time payment on a VA-backed loan. Rates have been unchanged since 7 April 2023: for a purchase with first-time use of your entitlement it is 2.15% with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. Subsequent use with less than 5% down is 3.3%.
You may be exempt entirely. This is the single most valuable paragraph on this page, and it is routinely missed. Per VA, you do not pay the funding fee if any of these apply:
- You are receiving VA compensation for a service-connected disability
- You are eligible to receive VA compensation for a service-connected disability but receive retirement or active-duty pay instead
- You are a surviving spouse receiving Dependency and Indemnity Compensation
- You received a proposed or memorandum rating before your loan closing date establishing eligibility
- You are active duty and provide evidence, on or before closing, that you received a Purple Heart
If any of those describe you, make sure your lender knows before closing, not after.
Property condition: get local advice, not internet advice
VA loans require the property to meet Minimum Property Requirements, checked at appraisal. I am not going to publish a list of what fails. The relevant chapter of VA's lender handbook was revised with effect from May 2026, and most of the "what fails a VA appraisal" content circulating online predates that revision.
What I will tell you is what matters locally. Panhandle housing stock includes a lot of homes built between the 1960s and 1980s, and the recurring themes here are roof age and wind mitigation, moisture in crawlspaces, and documentation of post-hurricane repairs. Those are worth having eyes on before you write an offer — not because VA necessarily fails them, but because they affect insurability and price. I will walk a property with you and flag what I see.
Where the VA loan works well around here
Entitlement stretches differently across the county. Established neighborhoods in Fort Walton Beach, Mary Esther and Shalimar offer more house per dollar than the beach corridor; Crestview further north stretches it further still. Niceville and Bluewater Bay command a premium tied to schools and the Eglin commute.
A note on condos
VA financing on a condominium requires the project itself to be VA-approved, which is a separate matter from your eligibility. On the beach and along the Destin corridor this rules out a meaningful share of inventory, and it is the reason a VA buyer can waste weeks on a unit that was never financeable. Check project approval before you fall in love with a unit.
Sources and further reading
- VA — home loan eligibility
- VA — how to request a Certificate of Eligibility
- VA — funding fee and closing costs
- VA — loan limits and entitlement
- VA Pamphlet 26-7 — Lender’s Handbook
Last updated: September 2026. Funding fee rates shown are those effective 7 April 2023. VA Minimum Property Requirements were revised with effect from May 2026 — confirm current requirements with your lender or a VA-approved appraiser. Caron Quicke is a licensed Florida REALTOR, not a lender.
Related reading
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