Last updated: October 22, 2026
Short answer: Yes. If you qualify for a VA Certificate of Eligibility, a VA-backed loan can let you buy in Avondale or anywhere near Luke Air Force Base with no down payment and no monthly mortgage insurance. Most first-time users pay a one-time VA funding fee of 2.15%, unless they receive VA disability compensation. Start with my Avondale home search.
Key takeaways
- VA loans often need no down payment and have no PMI, as long as the price isn't above the appraised value (VA.gov).
- The 2026 VA funding fee for a first-use purchase is 2.15% with less than 5% down, 1.5% with 5% down, and 1.25% with 10% down. Veterans receiving VA disability compensation don't pay it.
- With full entitlement, VA says there's no VA loan limit; your lender decides what you can afford. VA has no minimum credit score, but lenders do.
- North Avondale (85392) is about 9 miles by road from Luke AFB, roughly a 20-minute drive without traffic.
¡Qué tal! I'm Rosie Armenta. Mariela and I have so much respect for the men and women who serve, and for their families, who serve right alongside them. The West Valley is home to a lot of military families, active-duty and retired, and Avondale alone has more than 4,000 veterans, according to the Census Bureau. If you've earned a VA home loan benefit, I want you to understand it and use it well. Let's go through it step by step.
How does a VA home loan work?
The VA doesn't lend you the money. A private lender (a bank, credit union, or mortgage company) makes the loan, and the VA guarantees part of it. That guarantee is what lets lenders offer better terms. According to VA.gov, a VA-backed purchase loan often offers:
- No down payment, as long as the sales price isn't higher than the appraised value.
- No private mortgage insurance (PMI) or FHA-style mortgage insurance premium.
- Limited closing costs, which the seller may help pay.
- No prepayment penalty if you pay the loan off early.
To use it, you must qualify for a Certificate of Eligibility (COE), meet your lender's credit and income standards, and live in the home you buy.
Who qualifies for a VA loan?
VA sets minimum service requirements by era. For service after August 2, 1990, VA.gov lists, for example, 24 continuous months of active duty, or the full period you were called to active duty (at least 90 days), and 90 continuous days for current service members. Members of the National Guard and Reserve can qualify with 6 creditable years of service, or with qualifying active-duty time. Some surviving spouses qualify too. Details are on VA's eligibility page.
You can request your COE online, or your lender can often pull it for you. Veterans usually need their DD214. Active-duty members need a statement of service signed by their commander, adjutant, or personnel officer.
How much is the VA funding fee in 2026?
The funding fee is a one-time charge that helps keep the program running for taxpayers. You can pay it at closing or roll it into the loan. Here's VA's purchase-loan chart (effective April 7, 2023, and still current on VA.gov today):
| Your down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Source: VA funding fee and loan closing costs, checked October 22, 2026.
You don't pay the funding fee if you receive VA compensation for a service-connected disability (or are eligible for it but receive retirement or active-duty pay instead), if you're a surviving spouse receiving Dependency and Indemnity Compensation, or in a few other cases listed by VA, including active-duty members who received a Purple Heart.
Worked example: a $420,000 home in north Avondale
Redfin market data shows a median sale price of $419,877 in 85392 for the three months ending September 2026, so here's a $420,000 purchase. For the rate, I used Freddie Mac's weekly average for a 30-year fixed loan, 7.40% as of October 15, 2026. That's a national benchmark, not a VA rate quote, so your lender's number will be different.
| Scenario (first use) | Down payment | Funding fee | Loan amount (fee financed) | Principal & interest at 7.40% |
|---|---|---|---|---|
| 0% down | $0 | $9,030 (2.15%) | $429,030 | about $2,971/mo |
| 5% down | $21,000 | $5,985 (1.5%) | $404,985 | about $2,804/mo |
| 10% down | $42,000 | $4,725 (1.25%) | $382,725 | about $2,650/mo |
| 0% down, receives VA disability pay | $0 | $0 (exempt) | $420,000 | about $2,908/mo |
My math. Principal and interest only; property taxes, homeowners insurance and any HOA dues are extra. Funding fee percentages are VA's; the rate is Freddie Mac's PMMS average.
Notice how the funding fee shrinks a lot once you put 5% down. If you have savings, ask your lender to run both ways.
Can the seller pay my closing costs on a VA loan?
Yes. VA lets sellers or builders pay some or all of your closing costs, and doesn't cap those. What VA does limit is seller concessions (extras like paying your funding fee, paying off a debt, or prepaying your insurance) to 4% of the home's reasonable value. On a $420,000 home, that's up to $16,800 in concessions. Also know that, per VA, many lenders charge VA borrowers a 1% origination fee, and some lender fees are negotiable, so compare at least two or three lenders.
How big a home can I buy with a VA loan?
If you have full entitlement, VA says you don't have a loan limit, as long as you can afford the payment and the appraisal supports the price (VA entitlement and limits). If you've used your benefit before and still have a VA loan out, your remaining entitlement is figured from the county's conforming loan limit, and you may need some down payment. Either way, the lender looks at your credit, income, debts and assets. VA itself doesn't set a minimum credit score, but most lenders do, which is another reason to shop around.
What about the VA appraisal and home inspection?
They're two different things, and you want both:
- VA appraisal. A VA-approved appraiser checks that the home meets VA's minimum property requirements (MPRs) and gives an opinion of value. If it comes in low, you can ask for a reconsideration of value with better sales data, renegotiate the price, or pay the difference.
- Home inspection. VA strongly recommends one. An appraisal is not an inspection, so hire your own licensed inspector during your inspection period.
VA also says your contract should include the VA escape clause (sometimes called the VA option clause), which lets you cancel if the home doesn't appraise for the contract price.
Is north Avondale a good fit for Luke AFB families?
Many families like the commute. Using OpenStreetMap driving directions, the center of ZIP 85392 is about 9 miles by road from the Luke AFB address on Falcon Street, roughly 20 minutes without traffic. Your gate, your shift, and Loop 101 or Litchfield Road traffic will change that, so drive it at your real commute time before you buy.
Avondale's property taxes are friendly too. See how much property taxes are in Avondale, by school district.
Do disabled veterans get a property tax break in Arizona?
Yes, through the Maricopa County Assessor. For tax year 2026:
- Veterans with a service-connected disability can get a personal exemption that takes up to $4,873 off the home's assessed (taxable) value, multiplied by their disability percentage (for example, 60% gives $2,924), subject to income limits. That's a few hundred dollars a year off the bill, not $4,873.
- Veterans with a 100% service-connected disability (and honorable discharge) can have their primary residence fully exempt from property taxes, if they meet the eligibility requirements and are approved.
Apply with the Maricopa County Assessor. Exemptions don't transfer from the seller, so apply after you buy. Applications are due by February 28, or by September 1 with a deadline waiver.
How do I start buying a home with my VA loan?
- Request your COE online or through your lender.
- Check your credit, budget and savings, including money for the earnest deposit, inspection and moving.
- Compare two or three VA lenders and get preapproved. Ask about rates, the 1% fee and other lender charges.
- Choose your REALTOR® and read any buyer agreement before you sign; the new buyer-broker agreement explained walks through it.
- Shop for homes, write an offer with the VA escape clause, and order your inspection.
- Get through the VA appraisal, review your Closing Disclosure at least three business days before closing, and get your keys.
More reading: what closing costs to expect when buying in Arizona and the step-by-step guide to buying a home in Arizona.
Ready to look at homes near Luke AFB?
Browse my Avondale home search, filter by price and beds with the advanced search, or check my Avondale market report. If you already own and are getting orders to move, get a free home value report first. Call or text me at 623-295-5770. It would be an honor to help your family.
Frequently Asked Questions
Can I buy a house with no money down using a VA loan in Arizona?
Often, yes. VA says a VA-backed purchase loan usually requires no down payment as long as the sales price isn't higher than the appraised value. You'll still need money for things like earnest money, inspection, and any closing costs the seller doesn't cover.
How much is the VA funding fee in 2026?
For a first-time VA purchase loan, it's 2.15% of the loan amount with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. After first use, it's 3.3% with less than 5% down. Veterans receiving VA disability compensation are exempt.
Who doesn't have to pay the VA funding fee?
According to VA, you're exempt if you receive VA compensation for a service-connected disability, are eligible for it but receive retirement or active-duty pay instead, are a surviving spouse receiving Dependency and Indemnity Compensation, have a qualifying pre-discharge rating, or are an active-duty member who received a Purple Heart.
Is there a VA loan limit in Maricopa County?
Not if you have full entitlement. VA says borrowers with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. If you have a VA loan already in use, your remaining entitlement is based on the county conforming loan limit.
What credit score do I need for a VA loan?
VA doesn't require a minimum credit score, but most lenders set their own minimum. Compare more than one lender, because their requirements and fees differ.
Can the seller pay closing costs on a VA loan?
Yes. VA doesn't limit seller credits for normal closing costs, but it caps seller concessions, such as paying your funding fee or paying off debts, at 4% of the home's reasonable value. On a $420,000 home that's up to $16,800 in concessions.
How far is Avondale from Luke Air Force Base?
Using OpenStreetMap driving directions, the center of ZIP 85392 in north Avondale is about 9 miles by road from the Luke AFB address on Falcon Street, roughly 20 minutes without traffic. Your gate and the time of day will change that.
Do disabled veterans pay property taxes in Maricopa County?
For tax year 2026, veterans with a service-connected disability may qualify for a personal exemption that takes up to $4,873 off the home's assessed (taxable) value, multiplied by their disability percentage (for example, 60% gives $2,924), subject to income limits. That's a few hundred dollars a year off the bill, not $4,873. Veterans with a 100% service-connected disability who meet the requirements can have their primary residence fully exempt. Apply with the Maricopa County Assessor. Applications are due by February 28, or by September 1 with a deadline waiver.
About the authors
Rosie Armenta is a REALTOR® with West USA Realty. She and her daughter, Mariela Armenta, work together as a mother-daughter team. North Avondale (85392) is their home base, and they help buyers and sellers across the West Valley in English and Spanish. Call or text 623-295-5770, or get a free home value report.
Rosie Armenta, REALTOR® | West USA Realty | Equal Housing Opportunity
Figures were checked on October 22, 2026, from VA.gov (purchase loans, eligibility, Certificate of Eligibility, funding fee and closing costs, entitlement and limits, and the home buying process), Freddie Mac's Primary Mortgage Market Survey (October 15, 2026), Redfin market data for 85392 (three months ending September 2026), the U.S. Census Bureau QuickFacts for Avondale (ACS 2020–2024), the Maricopa County Assessor's personal exemption FAQ, and OpenStreetMap routing (OSRM). I'm a REALTOR®, not a lender or tax advisor. Talk with a VA-approved lender about your loan, and with the Assessor about exemptions. This article is general information and is not affiliated with or endorsed by the Department of Veterans Affairs or Luke AFB.