Buying A Home

November 11, 2026

Veterans Day | November 11, 2026

VA home loans help eligible veterans, active-duty service members, and surviving spouses purchase homes in Northern Illinois and Southern Wisconsin. These government-backed mortgages may allow qualified buyers to purchase with no down payment and no monthly mortgage insurance. Understanding eligibility, lender requirements, property conditions, and closing costs is an important first step toward using this valuable benefit.

Honoring Our Veterans This Veterans Day

On Veterans Day, we recognize and thank the men and women who have served our country.

Their service and sacrifices deserve our gratitude, not just today, but throughout the year.

One of the benefits available to many qualifying military members and veterans is the VA home loan program, which can help make homeownership more accessible.

At The Star Home Team at Better Homes and Gardens Real Estate Star Homes, we serve buyers and sellers throughout Northern Illinois and Southern Wisconsin.

Whether you're considering a home in Grayslake, Gurnee, Antioch, McHenry, Crystal Lake, Kenosha, Pleasant Prairie, or another nearby community, understanding your home financing options can help you prepare for the next chapter.

For eligible veterans and military families, that may include exploring a VA-backed home loan.

1. What Is a VA Home Loan?

A VA home loan is a mortgage benefit supported by the U.S. Department of Veterans Affairs.

Most VA purchase loans are provided by private lenders, such as banks, credit unions, and mortgage companies. The VA guarantees a portion of the loan, which reduces certain risks for the lender and can make favorable financing terms available to eligible borrowers.

VA loans are not limited to first-time homebuyers.

They can also be used by qualifying borrowers who have owned homes previously or who have used their VA home loan benefit before.

According to the Department of Veterans Affairs, VA-backed purchase loans can be used for several eligible property types, including single-family homes, certain multifamily properties, and condominiums in VA-approved projects.

The home generally must be intended as the borrower's primary residence.

Official resource: VA Purchase Loan Program

2. What Are the Main Benefits of a VA Home Loan?

One of the most important advantages of a VA loan is the possibility of purchasing a home without a down payment.

However, that is not the only potential benefit.

No Down Payment May Be Required

Eligible borrowers may qualify for a VA-backed purchase loan with no down payment when the purchase price does not exceed the property's appraised value and the lender's requirements are satisfied.

This can be especially helpful for buyers who have sufficient income to support a mortgage but would prefer to preserve their savings.

A zero-down-payment loan does not mean a buyer will have no expenses at closing.

No Monthly Mortgage Insurance

Unlike many conventional mortgages with small down payments, VA-backed purchase loans do not require monthly mortgage insurance.

This can affect the total monthly payment and should be considered when comparing financing options.

Competitive Financing Terms

VA-backed loans may offer competitive interest rates and other favorable terms.

However, interest rates, lender fees, qualification standards, and loan costs can vary.

We encourage buyers to compare actual loan offers rather than assuming every VA lender offers identical terms.

The Benefit May Be Reused

Eligible veterans may be able to use their VA home loan benefit more than once.

Whether a borrower has full or remaining entitlement depends on their individual circumstances.

A VA-approved lender can review the borrower's Certificate of Eligibility and explain how entitlement may affect the next purchase.

3. Who Is Eligible for a VA Home Loan?

VA home loan eligibility is generally based on qualifying military service and other requirements established by the Department of Veterans Affairs.

Potentially eligible applicants include:

Veterans who meet applicable service requirements
Active-duty service members
Certain National Guard and Reserve members
Certain eligible surviving spouses

Eligibility depends on service history, duty status, discharge circumstances, and other applicable rules.

The most reliable starting point is the VA's official eligibility guidance.

Official resource: VA Home Loan Eligibility Requirements

What Is a Certificate of Eligibility?

A Certificate of Eligibility, commonly called a COE, is a document that helps establish whether an applicant qualifies for the VA home loan benefit.

A COE is not the same as mortgage approval.

Even with a valid COE, borrowers must meet the lender's requirements for credit, income, debt, and other financial considerations.

Applicants can request a COE through the VA or ask a participating lender to help obtain one.

Official resource: How to Request a VA Certificate of Eligibility

4. Can You Buy a Home in Illinois or Wisconsin With a VA Loan?

Yes. Eligible borrowers can use VA-backed purchase loans to buy qualifying homes in Illinois or Wisconsin.

The VA home loan program is federal, so the basic benefit is not restricted to one of these states.

However, the property must meet applicable VA and lender requirements, and the real estate transaction must follow the rules of the state where the home is located.

Buying With a VA Loan in Northern Illinois

Veterans searching in Lake County or McHenry County may consider communities such as:

Grayslake
Gurnee
Antioch
Lake Villa
Fox Lake
McHenry
Crystal Lake
Johnsburg
Spring Grove

Each community offers different housing options, price ranges, property characteristics, and ownership expenses.

Buying With a VA Loan in Southern Wisconsin

Veterans considering Southern Wisconsin may explore:

Kenosha
Pleasant Prairie
Bristol
Twin Lakes
Salem Lakes
Other communities throughout Kenosha County and surrounding areas

Buyers who are considering both states should evaluate the actual costs associated with each property.

These may include property taxes, homeowners insurance, association fees, utilities, and maintenance expenses.

Our guide to moving between Illinois and Wisconsin explains additional considerations for buyers and sellers relocating across the state line.

You can also learn more about the differences between buying a home in Illinois and Wisconsin.

5. How Much Money Do You Need to Buy a Home With a VA Loan?

Although many VA borrowers qualify for financing without a down payment, buyers should still prepare for other homebuying expenses.

Depending on the transaction, these may include:

Earnest money
Home inspection expenses
Appraisal-related costs
Lender and title fees
Prepaid homeowners insurance
Property tax adjustments and escrow deposits
Moving expenses
Initial maintenance and repairs

What Is the VA Funding Fee?

The VA funding fee is a one-time charge that applies to many VA-backed home loans.

The amount depends on factors such as the loan type, whether the benefit has been used previously, and the down payment amount.

Certain eligible borrowers are exempt from the funding fee, including borrowers who meet specific VA disability compensation requirements.

For a VA purchase loan, the funding fee may generally be financed into the mortgage, while other closing costs must be addressed separately.

A qualified lender should explain the applicable fee, any exemption, and the total estimated closing expenses before a buyer commits to a loan.

Official resource: VA Funding Fee and Closing Costs

For additional preparation, read our article on questions to ask your mortgage lender before buying a home.

6. What Types of Homes Can You Purchase With a VA Loan?

VA-backed purchase loans can be used for several types of eligible residential properties.

These may include:

Detached single-family homes
Certain townhomes
Condominiums in VA-approved projects
Properties containing up to four residential units
Certain manufactured homes
Eligible new construction

Property type and financing eligibility should be confirmed with the lender before making an offer.

For example, a condominium may require project approval, and certain manufactured homes may have additional requirements.

A property containing multiple residential units must also satisfy applicable occupancy and lending requirements.

What About Waterfront Homes or Older Properties?

Northern Illinois and Southern Wisconsin have a variety of housing styles, including older homes, lake-area properties, and waterfront residences.

Some properties may have condition issues that need to be addressed before VA financing can be completed.

This does not mean older or waterfront homes are automatically ineligible.

It means buyers should discuss the property's condition and characteristics with their lender and real estate professional early in the process.

7. What Is a VA Appraisal, and Why Does It Matter?

A VA appraisal serves two important purposes.

First, it provides an opinion of the property's market value.

Second, the VA appraiser reviews whether the property meets applicable minimum property requirements.

These requirements are intended to address basic safety, structural soundness, and sanitation concerns.

A VA appraisal is not the same as a comprehensive home inspection.

The Department of Veterans Affairs strongly recommends that buyers obtain a separate home inspection to evaluate the property's condition.

What Happens if the Home Appraises Below the Purchase Price?

A low appraisal does not automatically mean the purchase must end.

Depending on the circumstances, buyers may have options such as:

Requesting a Reconsideration of Value through the lender
Renegotiating the purchase price
Paying an appraisal gap with additional funds
Exercising applicable contractual protections

VA purchase contracts must include the appropriate VA appraisal-related protection, often called the VA escape clause or VA option clause.

Buyers should discuss the language and other contractual contingencies with their real estate professional and appropriate legal adviser.

Official resource: Buying a Home With a VA-Backed Loan

8. How Do You Start the VA Home Buying Process?

For veterans and military families beginning a home search in Northern Illinois or Southern Wisconsin, the process generally involves several steps.

Step 1: Confirm Your VA Eligibility

Start by reviewing the Department of Veterans Affairs eligibility requirements and requesting your Certificate of Eligibility.

Step 2: Speak With a VA-Experienced Mortgage Lender

Ask a participating lender to explain available financing options, estimated payments, funding fees, closing costs, and documentation requirements.

Compare offers from more than one lender when practical.

Step 3: Establish Your Homebuying Budget

Consider the complete monthly cost of homeownership, including principal, interest, taxes, insurance, and applicable association fees.

A mortgage pre-approval is a useful starting point, but it does not guarantee final loan approval.

Step 4: Choose a Real Estate Professional

Work with an appropriately licensed real estate professional who understands your preferred communities and can help coordinate the purchase process.

Ask how the agent will communicate with your lender, handle contract deadlines, and help evaluate properties.

Our article about how buyer specialists help homebuyers explains the role of buyer representation in more detail.

Step 5: Search for Homes That Fit Your Needs

Compare homes based on location, condition, affordability, layout, and your personal priorities.

If you're considering both Illinois and Wisconsin, make sure you understand the differences in contracts and transaction procedures.

Step 6: Make an Offer and Complete Due Diligence

Once you find a suitable home, your real estate professional can help prepare and negotiate an offer.

The transaction may involve inspections, a VA appraisal, lender underwriting, and other contractual requirements.

Step 7: Review Your Closing Documents

Before closing, review the loan terms, estimated payments, closing expenses, and required documents.

Ask your lender and closing professionals to explain anything you do not understand.

9. The Star Home Team's Perspective: Preparation Makes a Difference

At The Star Home Team, we believe homebuyers benefit from understanding their financing and the local real estate process before they begin making offers.

That is especially important when a buyer is using a specialized mortgage program.

VA financing introduces requirements that should be discussed early, including eligibility, occupancy, property condition, and appraisal considerations.

We also recognize that every veteran's circumstances are different.

Some are purchasing their first home. Others are relocating after military service, moving closer to family, or purchasing another home after using their VA benefit previously.

Our role is to help buyers understand local housing markets, evaluate available properties, prepare offers, and navigate the real estate transaction.

The lender determines financing eligibility and explains the loan terms.

With more than 4,000 homes sold by our team, we understand the importance of communication and coordination among buyers, real estate professionals, lenders, inspectors, and closing professionals.

Whether you're looking in Lake County, McHenry County, Kenosha County, or another nearby community, our goal is to help you make informed real estate decisions.

Frequently Asked Questions About VA Home Loans in Illinois and Wisconsin

1. Can I buy a home in Illinois with no down payment using a VA loan?

Yes, eligible borrowers may qualify for a VA-backed purchase loan without a down payment. The purchase price, appraisal, entitlement, and lender approval all affect the transaction. Even when no down payment is required, buyers should prepare for closing costs, prepaid expenses, inspections, and other potential costs. A lender can provide an estimate based on the specific property and borrower's circumstances.

2. Can veterans use VA loans to buy homes in Wisconsin?

Yes. The VA home loan program is available for eligible properties throughout Wisconsin, including Kenosha County and surrounding Southern Wisconsin communities. Borrowers must meet VA and lender requirements, and the property must satisfy applicable eligibility and occupancy rules. Wisconsin real estate contracts and transaction procedures also apply to the purchase.

3. Do VA loans require a minimum credit score?

The Department of Veterans Affairs does not establish a universal minimum credit score for VA-backed purchase loans. However, individual mortgage lenders may impose their own credit standards and underwriting requirements. Credit history, income, debts, and other financial information can affect loan approval. Buyers should speak with participating lenders about their specific qualifications.

4. Can I use my VA home loan benefit more than once?

Yes. Eligible borrowers may be able to use their VA home loan benefit multiple times. The amount of entitlement available depends on factors such as previous VA loans and whether entitlement has been restored. Borrowers with remaining entitlement may face different financing considerations. A participating lender can review the Certificate of Eligibility and explain available options.

5. Can I use a VA loan to purchase a condominium?

Yes, but condominium eligibility is subject to additional requirements. Generally, the condominium project must be approved by the Department of Veterans Affairs. Before making an offer, ask your lender to verify the project's VA approval status and any additional financing conditions. Not every condominium automatically qualifies for VA-backed financing.

6. Can I buy a vacation home with a VA loan?

VA-backed purchase loans generally require the borrower to intend to occupy the property as a primary residence. A home purchased solely as a vacation property or seasonal second home typically does not satisfy that requirement. Certain occupancy exceptions or special circumstances may apply, so borrowers should discuss their specific situation with a qualified lender and the VA.

7. Does a VA appraisal replace a home inspection?

No. A VA appraisal estimates the property's market value and considers applicable minimum property requirements. It is not a comprehensive home inspection. Buyers should consider obtaining an independent inspection to better understand the home's systems, structure, maintenance needs, and potential defects before completing a purchase.

8. Can The Star Home Team help veterans buy homes in both Illinois and Wisconsin?

Yes. The Star Home Team at Better Homes and Gardens Real Estate Star Homes serves buyers and sellers throughout Northern Illinois and Southern Wisconsin through appropriately licensed real estate professionals. Our team can assist with local property searches, market information, buyer representation, offer preparation, and transaction coordination. Mortgage eligibility and VA loan approval are determined by the lender and applicable VA requirements.

Final Thoughts: Understanding Your VA Home Loan Benefit

For eligible veterans, service members, and surviving spouses, a VA home loan can provide an important path toward homeownership.

The opportunity to purchase without a down payment, avoid monthly mortgage insurance, and potentially access favorable financing terms makes the program worth understanding.

However, the right home purchase involves more than choosing a mortgage.

It also requires understanding the local housing market, evaluating property conditions, preparing for closing expenses, and choosing a home that fits your needs.

If you're considering purchasing a home in Northern Illinois or Southern Wisconsin, we would welcome the opportunity to help you explore your real estate options.

Contact The Star Home Team to discuss your home search.

And on this Veterans Day, to all who have served and to the families who have supported them, thank you for your service and sacrifice.