VA Loans in Utah: A St. George Guide for Veterans and Service Members

Homebuying
October 22, 2026

Hi, I'm Alex Hernandez, a mortgage loan officer with Guild Mortgage in St. George, Utah. If you've served in the military, you've earned one of the strongest home loan benefits out there, and I talk with a lot of Southern Utah veterans and service members who aren't sure whether they qualify or how it works. In this post I'll walk through what a VA loan is, who's eligible, what it costs, how the VA funding fee works, and a couple of Utah property tax exemptions that veterans should know about before they buy in Washington County.

What Is a VA Loan?

A VA loan is a mortgage made by a private lender, like me, and backed by the U.S. Department of Veterans Affairs. The VA doesn't lend the money on a typical purchase. Instead, it guarantees part of the loan, which protects the lender if a borrower defaults. That guaranty is what makes the program's best features possible.

According to the VA, 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 monthly mortgage insurance premium.
  • Limits on closing costs, some of which the seller may pay.
  • No prepayment penalty if you pay the loan off early.

That combination is a big deal. With an FHA or low-down-payment conventional loan, mortgage insurance is part of your monthly payment. I compare those two programs in FHA vs conventional loans in Utah if you want to see how they stack up.

Who Is Eligible for a VA Loan?

To use the benefit, you need a Certificate of Eligibility (COE), you need to meet the VA's and your lender's credit and income standards, and you need to plan to live in the home. The VA lists the minimum service requirements by service period. A few common examples:

  • Current service members: at least 90 continuous days of active service.
  • Veterans who served from August 2, 1990, to the present: generally 24 continuous months, or the full period (at least 90 days) you were called to active duty.
  • National Guard and Reserve members: qualifying active-duty service, or 6 creditable years of service with certain conditions.
  • Surviving spouses: may qualify in certain situations, such as receiving Dependency and Indemnity Compensation.

There are also exceptions for things like a service-connected disability discharge, so if you're not sure, it's worth checking. I can usually request your COE online for you during the application, or you can request it yourself through VA.gov.

Is there a minimum credit score?

The VA itself says it doesn't require a minimum credit score, but lenders can set their own requirements. Your credit history, income, debts, and assets all still matter. If your credit needs some work, my guide on the credit score you need to buy a house in Utah has practical steps.

VA Loan Limits and Entitlement

This part confuses a lot of people, so let me keep it simple. Your "entitlement" is the amount the VA guarantees on your loan. If you have full entitlement, the VA says you don't have a VA loan limit. You can borrow as much as you qualify for with no down payment, as long as the appraisal supports the price.

You generally have full entitlement if you've never used the benefit, or if you used it before and the loan was paid off and the home sold. If you still have a VA loan on another home, you may have remaining entitlement. In that case, the county's conforming loan limit comes into play, and a down payment may be needed on a larger purchase. I'm happy to look at your COE and run that math with you.

One more thing to know: the maximum VA loan on a property is the lower of the purchase price or the appraised value. If the appraisal comes in low, the loan amount is capped at the appraised value, and you and the seller would need to sort out the difference.

What Does a VA Loan Cost?

The VA funding fee

Instead of monthly mortgage insurance, most VA borrowers pay a one-time funding fee. It's a percentage of the loan amount, and you can either pay it at closing or finance it into the loan. Here are the VA's current funding fee rates for purchase loans:

  • First use, less than 5% down: 2.15%
  • First use, 5% or more down: 1.5%
  • First use, 10% or more down: 1.25%
  • After first use, less than 5% down: 3.3%
  • After first use, 5% or more down: 1.5%
  • After first use, 10% or more down: 1.25%

Who doesn't pay the funding fee?

The VA waives the funding fee for several groups, including veterans receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation, and active-duty service members who provide evidence of a Purple Heart on or before closing. If you have a pending disability claim, let me know early, because the timing of your rating can affect whether the fee applies.

Closing costs and seller concessions

You'll still have normal closing costs like the appraisal, title services, and prepaid taxes and insurance. On a VA purchase, the VA says you can finance only the funding fee into the loan. Other costs are paid at closing.

The good news is that sellers can help. The VA doesn't limit seller credits toward your normal closing costs, but it does cap seller concessions (things like paying your funding fee or paying off a debt for you) at 4% of the home's reasonable value. For a full breakdown of what shows up on a Utah closing statement, read my Utah closing costs guide.

Utah Property Tax Exemptions for Veterans

Here's where buying in Utah can get even better for veterans. These exemptions aren't part of the VA loan itself, but they can lower your property taxes, and that affects your monthly escrow payment.

Veteran with a disability exemption

According to the Utah State Tax Commission, veterans with a service-connected disability of at least 10% may qualify for an exemption of up to $535,459 of the taxable value of their residence. The amount is based on your disability percentage, and no exemption is allowed below 10%. Unmarried surviving spouses and minor orphans may also qualify. You apply with your county, using Form PT-025, and the deadline is September 1. First-time applicants need proof of service and proof of disability.

Active duty exemption

The Tax Commission also lists an exemption for active or reserve members who served on active duty outside Utah for 200 days in a continuous 365-day period. It's applied to your primary residence, and you apply by September 1 of the year after the qualifying service. You must reapply each year you're eligible.

Don't forget the primary residential exemption

Every Utah homeowner living in their home may also qualify for the state's primary residential exemption, which taxes a qualifying primary residence on 55% of its market value. Check the Tax Commission's exemption page for the current filing rules. Exemption amounts and deadlines can change, so confirm with the Washington County offices when you buy.

Using a VA Loan in St. George and Southern Utah

VA loans can be used to buy a single-family home, a 2 to 4 unit property you'll live in, a condo in a VA-approved project, or to build a new home. That's useful here, where there's a lot of new construction around St. George, Washington, and Hurricane. A few local tips from my side of the desk:

  • Condos and townhomes: check that the project is VA-approved before you fall in love with a unit. I can look it up for you.
  • New builds: builder incentives can often be applied toward closing costs, within the VA's concession rules.
  • Make your offer competitive: a strong preapproval helps sellers take your VA offer seriously. If you're not sure what that involves, read prequalified vs preapproved.
  • Budget beyond the down payment: even with $0 down, plan for closing costs, moving costs, and a cushion. My post on how much you need to buy in Utah helps you plan.

Frequently Asked Questions

Can I use my VA loan benefit more than once?

Yes. You can use it again, and in some cases have your entitlement restored, for example after you sell the home and pay off the prior VA loan. The funding fee is usually higher after first use if you put less than 5% down.

Do I have to be a first-time buyer?

No. The VA loan isn't limited to first-time buyers. You just need eligibility, to qualify for the loan, and to live in the home.

Can I buy a second home or rental with a VA loan?

A VA purchase loan requires you to live in the home. You can buy a 2 to 4 unit property and rent out the other units while you live in one of them.

Is the VA funding fee refundable?

It can be. The VA says you may qualify for a refund if you're later awarded compensation for a service-connected disability with an effective date before your loan closed.

Thank you for your service. If you'd like to learn with other local buyers, join our free community, the Utah Homebuyer Club, and when you're ready, get approved and start your home buying journey so I can check your eligibility and show you real numbers.

Equal Housing Opportunity. Alex Hernandez, NMLS #1605167. This article is for general educational purposes only and is not a commitment to lend or an offer of credit. All loans are subject to credit approval, underwriting, and property eligibility. VA loan eligibility is determined by the U.S. Department of Veterans Affairs. Program guidelines, tax rules, fees, and terms can change without notice. Not affiliated with or endorsed by the VA or any government agency. Contact me to review the options available for your situation.

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