Top 5 Mistakes Veterans Make With VA Loans (And How to Avoid Them)

The VA Home Loan is one of the most powerful benefits a veteran can access. With zero down payment, competitive interest rates, and flexible terms, it provides a gateway to homeownership and wealth-building that few other programs can match.

However, many veterans make mistakes when using their VA loans—mistakes that can cost thousands of dollars or limit their ability to leverage their benefits multiple times. In this article, we’ll break down the top five mistakes veterans make with VA loans and share strategies to avoid them, drawing on the real-world experience of Eric Martineau, a Marine veteran, real estate investor, and licensed VA loan officer.

Mistake #1: Not Understanding Your VA Loan Entitlement

One of the most common mistakes veterans make is misunderstanding or underestimating their VA loan entitlement. Your entitlement is essentially the VA’s guarantee to your lender, which allows you to buy a home without a down payment.

How Veterans Get It Wrong:

• Assuming you can only use the VA loan once

• Not realizing that entitlement can be restored after paying off a VA loan

• Overlooking how partial entitlement affects the size of your next VA loan

How to Avoid This Mistake:

• Request your Certificate of Eligibility (COE) to see exactly how much entitlement you have

• Work with a VA-savvy lender who understands multiple use strategies

• Plan your home purchases and refinances strategically to maximize available entitlement

💡 Real Insight from Eric: Eric and Diane Martineau used their VA loans 13 times while in service, building a property portfolio worth over $2.8 million. They didn’t rely on guesswork—they tracked entitlement, leveraged restorations, and planned every purchase strategically.

Mistake #2: Overlooking Refinancing Opportunities

VA loans come with excellent refinancing options—but many veterans ignore or misunderstand them, leaving money on the table.

Common Oversights:

1. IRRRL (Interest Rate Reduction Refinance Loan) mistakes:

   • Not refinancing when interest rates drop

   • Missing the chance to lower monthly payments with minimal costs

2. Cash-Out Refinance mistakes:

   • Not leveraging equity to fund additional investments

   • Overlooking how cash-out can restore entitlement indirectly for future purchases

How to Avoid This Mistake:

• Review your VA loan refinancing options regularly

• Track interest rates and market trends

• Consult a VA expert like Eric to identify when refinancing makes financial sense

💡 Pro Tip: Refinancing can be more than just a lower payment—it can free up funds to invest in your next property, effectively allowing your VA benefits to go further.

Mistake #3: Paying Unnecessary Fees

While VA loans do not require a down payment, they still involve closing costs and fees. Many veterans pay more than they should because they don’t understand which costs are negotiable.

Common Fees Veterans Overlook:

• Appraisal fees

• Recording fees

• Title insurance or lender-required insurance

• Funding fees (which can often be rolled into the loan or waived for disabled veterans)

How to Avoid This Mistake:

• Review the Loan Estimate carefully before closing

• Ask sellers to pay negotiable closing costs

• Ensure your lender applies any funding fee exemptions if eligible

💡 Lesson from Eric: Every dollar saved at closing is a dollar that can be invested or reinvested. By minimizing unnecessary fees, veterans can preserve cash for down payments on future properties or investment opportunities.

Mistake #4: Not Planning Property Purchases Strategically

The VA loan is a tool, not just a one-time benefit. Veterans often make the mistake of buying without a long-term plan, which can limit wealth-building potential.

Strategic Planning Mistakes:

• Purchasing properties that don’t align with financial goals

• Buying in areas without growth potential or rental demand

• Failing to account for taxes, insurance, and maintenance costs

How to Avoid This Mistake:

• Treat each purchase as part of a larger portfolio strategy

• Consider long-term investment potential, not just immediate homeownership needs

• Analyze neighborhoods for appreciation potential and rental demand

💡 Eric’s Approach: Every property purchase is intentional. By buying smart, he and Diane were able to generate passive income that replaced their military salaries, while strategically using their VA loans to acquire multiple homes.

Mistake #5: Navigating the Process Without Expert Guidance

The VA loan process can be complex. Missteps in paperwork, appraisal requirements, or entitlement restoration can delay approvals or cost money. Many veterans try to go it alone and end up making costly errors.

Common Oversights:

• Not understanding VA appraisal rules

• Mismanaging entitlement restoration

• Overlooking options for co-borrowers or spouse inclusion

How to Avoid This Mistake:

• Work with a VA loan expert who understands the system

• Follow guidance on entitlement, refinancing, and portfolio planning

• Ask questions before making major financial decisions

💡 Eric’s Expertise: With decades of experience as a Marine and VA loan officer, Eric guides veterans step by step, helping them avoid mistakes that cost thousands and maximize their benefits.

Bonus Tips: Maximizing VA Loans Beyond the First Home

Using a VA loan once is valuable—but using it strategically multiple times is transformative. Here are extra tips:

1. Consider Multi-Unit Properties: VA loans can be used for 2–4 unit properties, allowing rental income to offset mortgage payments.

2. Leverage Refinancing to Fund Investments: Cash-out refinancing can unlock capital for your next purchase.

3. Restore Entitlement Carefully: Every property purchase and sale should be tracked to ensure entitlement is available for future use.

Eric and Diane Martineau used these strategies to grow their real estate portfolio efficiently, building long-term wealth while serving in the military.

Why Working With Eric Martineau Matters

Navigating VA loans can be tricky, especially if you want to maximize benefits, minimize costs, and use loans multiple times. Eric Martineau brings a unique combination of experience:

• Marine Veteran: He understands the challenges and benefits from firsthand experience.

• Real Estate Investor: Built a portfolio of 22 rental units worth over $2.8 million.

• Licensed VA Loan Officer: Helps veterans strategically use their benefits without costly mistakes.

Working with Eric ensures veterans make informed decisions, save money, and leverage VA loans for long-term wealth-building.

Conclusion: Avoid Mistakes and Make Your VA Loan Work Harder

The VA loan is more than just a benefit—it’s a powerful financial tool. By avoiding the five common mistakes:

1. Misunderstanding entitlement

2. Overlooking refinancing opportunities

3. Paying unnecessary fees

4. Buying without a strategy

5. Navigating the process without expert guidance

…veterans can unlock the full potential of their VA benefits, build wealth, and create passive income streams.

📌 Ready to take control of your VA benefits and make smart property moves?
Visit Eric.AxenRealtyTeam.com and book an appointment with Eric today. Let him show you how to avoid costly mistakes and maximize your VA loan like a pro.

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#VALoanTips, #VeteranHomeownership, #VALoanMistakes, #FinancialFreedom, #MilitaryBenefits, #RealEstateInvesting, #PassiveIncome