VA Loans in Pierce County: Powerful Benefits, Smart Choices

Honoring Service with Smart Homeownership Choices

Every Veterans Day, Pierce County honors the men and women who’ve served our nation and strengthened our communities. Beyond ceremonies and gratitude, this season is also a reminder that homeownership can be one of the most lasting ways for veterans to plant roots and build generational wealth.

And here in Pierce County—home to Joint Base Lewis-McChord and one of the most active veteran populations in Washington—there’s an abundance of opportunity. But knowing how and when to use those benefits matters just as much as knowing they exist.

Why VA Loans Are a Game-Changer

The U.S. Department of Veterans Affairs (VA) home loan program has helped millions of veterans and service members become homeowners, often with less upfront cost and better financing terms than conventional loans.

Here’s what makes the VA loan stand out:

• No down payment required. You can buy with $0 down and still get a competitive rate.

• No private mortgage insurance (PMI). This alone can save hundreds of dollars per month compared to a conventional loan.

• Competitive interest rates. VA rates are often lower than conventional mortgage rates.

• Flexible qualifying standards. Credit and debt ratios are more forgiving, making approval easier for many borrowers.

That combination is especially powerful in Pierce County, where the average home price has hovered around $562,000 in 2025—and every bit of financing flexibility counts.

Local Advantage: Pierce County’s Veteran Resources

Pierce County’s military-friendly culture makes VA loans particularly accessible. Many local lenders and agents are experienced in navigating VA rules, and several state programs can be layered on top of VA benefits.

For example, the Washington State Housing Finance Commission’s Veterans Down Payment Assistance Loan Program provides up to $24,900 in down payment help for eligible veterans purchasing homes in parts of Pierce County (outside Tacoma, Bonney Lake, and a few nearby cities). This can be combined with a VA loan to significantly reduce out-of-pocket expenses.

The Flip Side: When VA Loans Aren’t Always the Best Fit

VA loans are generous—but not perfect. Understanding the potential drawbacks helps you make a truly informed decision.

1. The VA Funding Fee
Instead of paying mortgage insurance, VA borrowers pay a one-time funding fee, typically between 1.25% and 3.3% of the loan amount. This fee can be rolled into the loan, but it increases your balance and long-term interest costs. (Veterans with service-connected disabilities are often exempt.)

2. Property Restrictions
VA appraisals have stricter “minimum property requirements.” If you’re buying a fixer-upper or unique home, the VA might require repairs before closing. This can delay—or even jeopardize—the deal.

3. Seller Perceptions
Although improving, some sellers and agents still believe VA loans are slower or more complicated. In a multiple-offer situation, that perception can make a difference unless your agent knows how to present a VA offer competitively.

4. Funding Fee on Repeat Use
Each time you use the VA loan, if you haven’t fully restored your entitlement, your funding fee may increase. That’s something to weigh if you’re moving again soon or buying a second home before selling your first.

If You’re Selling One Home and Buying Another

Many Pierce County veterans face this exact question:
Should I use my VA benefit again, or switch to a conventional loan since I now have equity?

Let’s look at your main options:

1. Sell, then buy with a conventional loan.
If your current home sale gives you 20% or more in equity, a conventional loan might be smarter. You avoid the VA funding fee, have more flexibility with the property type, and still skip PMI by putting 20% down.

2. Sell, then buy with another VA loan.
If keeping cash in your pocket matters more than minimizing total cost, reusing your VA loan is still a great choice. You’ll likely get a lower rate than conventional, and you can often reuse your entitlement once the first loan is paid off.

3. Buy before you sell (holding two homes).
You can have two VA loans at once if you have remaining entitlement, but you’ll need to qualify based on income and debt ratios. Lenders may also limit the second loan’s size or require more documentation.

4. Hybrid approach.
Some veterans start with VA financing for their first home, then refinance or use a conventional loan later to free up their VA benefit for a future move or investment property.

Smart Questions to Ask Before Choosing

1. What’s my funding fee on this purchase, and is it worth the savings versus conventional financing?

2. Will the VA appraisal requirements fit the type of home I want?

3. Do I plan to move again within a few years? If so, repeated funding fees might add up.

4. Am I likely to keep or sell my current home? That affects whether your VA entitlement resets.

5. Is my lender experienced with VA loans in Pierce County? Local expertise matters—especially when combining programs.

Big Picture: Building Wealth, Not Just Buying a Home

VA loans are an incredible privilege—one earned through service. But like any financial tool, they’re most powerful when used strategically.

If you’re just starting out, the VA loan can make homeownership possible years earlier than otherwise.
If you’ve already built equity, a conventional loan might now cost less overall.

The goal isn’t simply using your benefit—it’s using it wisely.

Your Next Step: Let’s Talk

Ready to take the first step?
📞 Call or text me anytime. 253-255-5966 Let’s turn your fears into confidence—and your home’s equity into freedom.

Because your next chapter should be about joy—not worry. 💛

Susie | Real Estate Agent Serving clients in Washington for 20+ Years

P.S. Curious about your home’s value? Ask me for a free, no-obligation assessment today. 253-255-5966