VA Loan Basics at Fort Campbell: What a Soldier Buying in Clarksville Needs to Know

Short answer: A VA loan is a mortgage backed by the Department of Veterans Affairs for eligible service members, veterans and some surviving spouses. For eligible buyers it means $0 down and no monthly mortgage insurance (PMI). It's the loan most of my Fort Campbell buyers start with. It isn't the only option, and it's not always the right one.

I'm Keri Gilles, a Realtor® and Military Relocation Professional with the Don Martin Team at Haus Realty & Management in Clarksville, TN. I explain how it all works, so you understand every step before you sign anything. Loans are where that matters most, so here's the VA version.

It's a regular home loan from a lender, with a government guarantee behind it. The VA doesn't hand you the money. A private lender does. The guarantee is why the lender can offer terms a conventional loan usually can't.

You can use it on a house in Clarksville, Oak Grove, Hopkinsville, Adams, Pleasant View, Springfield or Dover. Where the home sits doesn't change the loan. The rules are the same on the Tennessee side and the Kentucky side of Fort Campbell.

• $0 down payment for eligible buyers.
• No monthly mortgage insurance (PMI). That's a monthly cost most low-down-payment loans carry.
• Limits on what you can be charged at closing.
• A VA funding fee. If you are on active duty, you will pay it. It is added to the back end of your loan, so you do not pay it up front. Think of it as the VA loan's version of the down payment an FHA buyer puts up front, except it rides on the end of the loan. Veterans with a service-connected disability rating of 10% or greater never pay it. It is waived for good.

Ask your lender for the current funding fee amount on your loan. The rate depends on the loan and can change, so I do not quote a number here.

Eligibility comes from your service record. Active duty, veterans, and some surviving spouses can qualify. The lender confirms it with a document called a Certificate of Eligibility, and the lenders I work with pull it for you. It usually takes the lender 24 to 48 hours.

Bring your orders and your LES (Leave and Earnings Statement) to the first lender conversation. A lender who knows military income counts your BAH as income and knows what paperwork the VA needs. If your ETS date is inside the next 12 months, say so up front so the lender can ask for what they need on day one.

Two I'm asked about most:

1. You have to intend to live in the home. A VA loan is for your primary residence. You're expected to move in within 60 days of closing.
2. The home has to meet the VA's requirements. Buyers and sellers both get hung up on the VA appraisal. The VA appraiser looks for things that would be costly to the soldier buying the home, like missing flooring or holes in the walls. The home has to be move-in ready. It can be dated, but it has to be livable.

That first rule doesn't stop you from keeping the house later. Plenty of military families PCS out and rent the home. You just have to live in it first. The usual expectation is that you live in the home for 2 years before renting it out. Because soldiers can be PCSed at any time, there is flexibility in that rule, so talk to your lender about your orders before you decide.

A VA purchase here typically closes in 21 to 30 days. Orders set the calendar, not you, so I build the timeline backward from your report date. If you're still at your current duty station, we tour homes by live video, and many soldiers sign closing documents remotely or through a power of attorney.

Most of my military buyers are. I film a full walkthrough of the home before you make an offer, so you can see inside the cabinets, run the water and check what you'd check if you were standing there. Your lender handles the paperwork by email and e-sign. You get on the road knowing what you're buying.

A VA loan is not required. Some soldiers use FHA or conventional for good reasons, like a seller who prefers a certain loan type or a price point where the numbers work better another way. Ask your lender to run the full monthly payment on each loan, including taxes and insurance, and compare the real number. I'll sit with you while you do it.

• Looking at the loan and not the full payment. Taxes and homeowner's insurance sit on top of principal and interest. Ask for the full monthly number every time.
• Buying right up to the BAH number. Utilities and repairs come out of your pocket. Leave room.
• Waiting until you arrive. The lender conversation can start the day you have orders.
• Picking a lender who doesn't do VA loans often. The right one makes it routine.
• Skipping the inspection. The VA appraisal is not a home inspection. I tell every VA buyer to get both.

Can I use a VA loan more than once?
Yes. You can use a VA loan more than once. Your lender walks you through how it works for your situation.

Do I need a down payment?
Not for eligible buyers. A VA loan allows $0 down. Savings still help with closing costs and moving, so ask your lender what to expect.

Can I use a VA loan on a house on the Kentucky side?
Yes. A VA loan works in Tennessee and Kentucky. Your BAH rate is set by your duty station, not the state you live in.

What if I have a service-connected disability rating?
If your rating is 10% or greater, the VA funding fee is waived for good. Your lender will confirm it with your paperwork.

How fast can I close?
A VA purchase here typically closes in 21 to 30 days.

If you're PCSing to Fort Campbell, or you're a veteran buying near Clarksville, start with a buyer consultation. I'll explain how the VA loan works for your situation, introduce you to lenders who work with soldiers every week, and build your timeline from your orders. Tell me your report date on the contact page.