For many Maryland veterans, active-duty service members, and military families, buying a home can feel like a major mission with unfamiliar paperwork, loan terminology, and financial decisions.
The VA home loan benefit may be one part of that process. Maryland Mortgage Program resources may be another. But before you begin touring homes, it helps to understand what these programs generally do, what they do not do, and which questions to ask the professionals responsible for confirming eligibility and loan terms.
Cornerstone exists to help make the real estate conversation easier to understand. The business is led by Lamont Milbourne, a U.S. Army veteran and licensed Maryland real estate professional. This guide was created to provide plain-language education, not lending advice, approval predictions, or guarantees.
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What a VA-backed purchase loan is
A VA-backed purchase loan is made through a private lender, such as a bank, mortgage company, or credit union. The U.S. Department of Veterans Affairs guarantees part of the loan according to its program rules.
That guarantee can allow participating lenders to offer features such as the possibility of no down payment for eligible borrowers. According to the VA’s official home loan overview, nearly 90% of VA-backed loans are made with no down payment.
That does not mean every borrower, property, or loan receives the same treatment. You still need to meet applicable VA, lender, income, credit, property, and occupancy requirements. The lender determines the loan terms and approval decision.
A VA-backed purchase loan is generally intended for a home you plan to occupy as your primary residence. It is not designed simply as a general-purpose investment or vacation-property loan.
Start with the Certificate of Eligibility
The Certificate of Eligibility, or COE, is a document showing your lender that you may qualify for the VA home loan benefit based on your service history and duty status.
The VA provides different service requirements for veterans, active-duty service members, National Guard members, Reserve members, and certain surviving spouses. The rules can also depend on when and how you served.
You may be able to request a COE:
- Online through the VA
- With help from your lender
- Through the VA’s application process if additional service documentation is needed
Review the VA eligibility information before assuming that your service history automatically qualifies. If your situation involves a discharge classification, a prior VA loan, restored entitlement, or surviving-spouse eligibility, official VA guidance is the appropriate place to confirm the details.
No down payment does not mean no cash needed
One of the most common misunderstandings about VA financing is that a possible zero-down-payment structure means a buyer needs no money available.
Even when a down payment is not required, a buyer may still need to plan for:
- Inspection-related costs
- The VA appraisal fee
- Title and recording charges
- Prepaid taxes or insurance
- Lender fees
- Moving expenses
- Earnest money, depending on the contract
- Repairs or maintenance after closing
Closing costs may be negotiated between the buyer and seller in some transactions, subject to applicable rules and the terms of the contract. However, buyers should not assume that another party will pay their costs.
The VA’s funding fee and closing-cost guidance explains that only the VA funding fee may generally be financed into a VA purchase loan. Other costs typically need to be addressed separately at closing.
Understanding the VA funding fee
The VA funding fee is a one-time charge that helps support the VA loan program. It is separate from the interest rate and other lender charges.
As listed by the VA and current as of January 15, 2026, the funding fee for veterans, active-duty service members, and National Guard or Reserve members using a VA-backed purchase loan is generally:
| Use of VA benefit | Down payment | Funding fee |
|---|---|---|
| First use | Less than 5% | 2.15% |
| First use | 5% or more | 1.5% |
| First use | 10% or more | 1.25% |
| After first use | Less than 5% | 3.3% |
| After first use | 5% or more | 1.5% |
| After first use | 10% or more | 1.25% |
These figures are for general education. Your lender must calculate the fee for your specific loan.
Some borrowers may qualify for an exemption, including certain veterans receiving VA compensation for a service-connected disability, certain surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients who provide the required evidence before closing. Ask the VA or your lender to review your individual situation.
How Maryland Mortgage Program assistance may fit in
The Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development, offers several home loan options for eligible Maryland buyers.
The program’s official home loan page identifies VA-backed financing as one of its government-insured loan types. Some MMP products also include down payment or closing-cost assistance.
Examples listed by MMP include:
- 1st Time Advantage 6000: A $6,000 deferred, zero-interest second lien for eligible borrowers.
- 1st Time Advantage 3%, 4%, or 5%: Assistance based on a percentage of the first mortgage.
- Flex 6000: A $6,000 deferred, zero-interest second lien for eligible first-time or repeat buyers.
- Flex 3%: Assistance based on a percentage of the first mortgage.
- Partner Match: For eligible borrowers using 1st Time Advantage 6000 or Flex 6000, approved partner assistance may be matched up to $2,500. Partner Match is subject to current MMP rules, partner eligibility, and lender approval.
The exact product, amount, repayment terms, and eligibility requirements can vary. MMP states that some assistance is due when the first mortgage ends through repayment, refinance, transfer, or sale. That means “deferred” does not mean “forgiven.”
Review the current MMP down payment assistance information and speak with an MMP-approved lender for current program details.
Veterans and the first-time buyer question
MMP’s 1st Time Advantage page identifies an exception for an honorably discharged veteran who has not previously used the first-time homebuyer exemption. Documentation may include a DD-214 and a Veteran First Time Homebuyer Exemption form.
This is not a blanket exception for every situation. MMP income, purchase price, credit, property, occupancy, and other program requirements may still apply.
MMP also says that Flex products are available to both first-time and repeat homebuyers, subject to the program’s requirements. Read the current rules rather than relying on an older social media post or a previous transaction.
Smart questions to ask before searching for homes
Before touring properties, consider asking:
- Can I obtain a VA Certificate of Eligibility, and do I have remaining entitlement?
- Which VA-backed purchase loan terms should I review with you?
- What funding fee would apply to my situation?
- Could I qualify for a funding-fee exemption?
- What lender-specific credit, income, or documentation requirements apply?
- What closing costs should I plan to review?
- Can the VA loan be originated through the Maryland Mortgage Program?
- Which MMP products are currently available for my household and property?
- Would I be treated as a first-time or repeat buyer under the MMP rules?
- What documentation is needed for military status, income, assets, and household information?
- How will the appraisal and property-condition review work?
- What is the expected timeline from contract to closing?
These questions are designed to help you organize a conversation. They are not a substitute for a lender’s review, official VA guidance, or current MMP program documentation.
What the real estate professional does
A real estate professional and a lender handle different parts of the process.
Your lender evaluates financing, loan documentation, fees, underwriting, and approval. Your real estate professional helps with the property search, scheduling, offer paperwork, contract discussions, inspections, communication, and transaction coordination.
The VA homebuying process guide recommends reviewing agreements carefully and understanding the difference between an appraisal and an inspection. A VA appraisal addresses the lender’s requirements for value and basic property condition. An inspection is a separate buyer due-diligence step.
Military families may also need to think about commute times, upcoming duty-station changes, school considerations, family support, and how long they expect to remain in the area. Those practical questions can be just as important as the loan program.
A simple Maryland homebuying starting point
You do not need to have every answer before beginning the conversation. A practical first step is to gather:
- Your preferred Maryland counties or communities
- Your general homebuying timeline
- Whether you are active duty, a veteran, Guard, Reserve, or a surviving spouse
- Whether you have used a VA loan before
- Your preferred property type
- Any major location or commute requirements
- Questions about VA financing or MMP assistance
Then connect with the appropriate professionals. Cornerstone can help route the real estate conversation, while a VA-experienced lender or MMP-approved lender can address financing-specific questions.
For more about Lamont Milbourne’s real estate work, visit his property advisor page.
Ready to start the real estate conversation?
Send me the property address or basic details and I’ll let you know what information would be needed for the next step.
Or call Rachel at +1 (227) 295-2046 to get routed to the right person.
Lamont "Monty" Milbourne · Licensed Maryland Real Estate Agent · eXp Realty · 7939 Honeygo Blvd Ste 108, Baltimore, MD 21236
Lamont "Monty" Milbourne is a licensed Maryland real estate professional with eXp Realty.
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