VA HOME LOANS
Zero down, no monthly mortgage insurance, and a rate structure most veterans do not realise they have earned. Johnson City is home to the Mountain Home VA campus, and we close VA loans here every month — including the ones other lenders call too complicated.
Your full benefit, explained properly — including the parts most lenders skip.
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The VA loan is the strongest financing available to anyone who qualifies for it, and it is routinely left on the table because a listing agent or a lender told a veteran it would be “harder.”
Most eligible borrowers finance 100% of the purchase price. In a market where saving a down payment is the actual barrier, that is the whole difference.
FHA charges it for the life of the loan. Conventional charges it until 20% equity. VA charges none at all — only a one-time funding fee, which is waived entirely for veterans with a service-connected disability rating.
VA rates are typically at or below conventional, and underwriting looks at residual income rather than a rigid debt-to-income cutoff, which helps borrowers with student loans or a thin file.
The benefit is not once-per-lifetime. Entitlement restores when you sell and pay off the loan, and in some cases you can hold two VA loans at once — useful for a PCS move.
Plenty of lenders say they do VA loans. Fewer will tell you what residual income actually is, or handle a Tidewater notice without panicking.
The Arrowood Team offers a $5,000 Closing Guarantee. After a fully underwritten pre-approval we can issue a guarantee certificate, and if the loan does not close, Tim pays $1,000 to the borrower and $4,000 to the seller. Eligibility depends on the transaction — ask us whether it applies to yours, or read the full terms on our Closing Guarantee page.
The national average purchase closes in about 45 days. Our process targets 21 to 30, which is often the difference between winning a house and coming second.
We are at 119 Boone Ridge Dr in Johnson City. Tim Arrowood (NMLS #393468) personally works your file — no transferred queues, no loan officer who has moved on by underwriting.
If a conventional loan would genuinely cost you less — which happens on some higher-price purchases where the funding fee outweighs the PMI — we will run both and show you.
The persistent myth is that a VA offer is weaker. Handled properly it is not, and these are the four situations we set up most often.
The standard play. Keep your cash for the move and the first year of ownership rather than sinking it into a down payment you are not required to make.
A partial down payment reduces the funding fee percentage. On a larger purchase the math sometimes favours 5% down over zero — worth checking rather than assuming.
Build with zero down and one closing instead of two. We write these regularly across the Tri-Cities and Southwest Virginia — see what veterans should ask before the slab.
If you already hold a VA loan, the streamline refinance needs no appraisal and no new income documentation in most cases. It is the lowest-friction refinance that exists.
Johnson City. The Mountain Home VA campus anchors a large veteran population here, and a meaningful share of our purchase volume is VA. Local listing agents are used to seeing our VA pre-approvals, which matters more than most buyers realise when offers are compared.
Kingsport and Bristol. A different price band, and in Bristol you may be weighing homes on both sides of the state line. The VA benefit works identically in Tennessee and Virginia; the taxes and insurance do not.
Rural properties and acreage. Common across Washington, Sullivan and Carter County and into Southwest Virginia. VA appraisals on acreage need the right comparable sales, and a well or septic system brings its own MPR requirements. Knowing that before you offer is the entire game.
Eligibility is about service history, not just credit.
Not sure whether your entitlement is intact? Call (423) 406-1567 — we can usually tell you the same day.
1. Do I really need zero down payment?
If you have full entitlement, yes — most eligible borrowers finance 100% of the purchase price with no down payment and no monthly mortgage insurance. Partial entitlement from a previous VA loan can change that ceiling, which is why we check your Certificate of Eligibility before you make an offer rather than after.
2. Will a VA offer hurt my chances in a bidding war?
This is the most persistent myth in the market and it costs veterans houses. A VA offer backed by a fully underwritten pre-approval is as strong as any conventional offer, because the file has already cleared the step that usually causes late surprises. What weakens a VA offer is a lender who cannot explain the appraisal process to a nervous listing agent.
3. What is the VA funding fee and can I avoid it?
It is a one-time fee that replaces mortgage insurance, and it can be rolled into the loan rather than paid at closing. It is waived entirely for veterans receiving compensation for a service-connected disability. Making a down payment also reduces the percentage. Always ask about this — the waiver is worth thousands and it is missed surprisingly often.
4. Can I use my VA loan more than once?
Yes. It is not a once-per-lifetime benefit. Entitlement is restored when you sell the home and pay off the loan, and in certain situations — a permanent change of station, for example — you can hold two VA loans at the same time.
5. What credit score do I need for a VA loan?
The VA itself sets no minimum. Most lenders apply an overlay somewhere around 580 to 620. Because VA underwriting weighs residual income rather than a hard debt-to-income cutoff, borrowers who were declined for a conventional loan often qualify here. Worth a conversation before you assume the answer.
6. Can I build a house with a VA loan?
Yes, through a one-time close construction loan — zero down, one closing, one set of costs, rather than a construction loan followed by a separate permanent mortgage. We write these across the Tri-Cities and Southwest Virginia.
Tennessee: Johnson City, Kingsport, Bristol, Jonesborough, Elizabethton, Greeneville, Piney Flats and the surrounding Tri-Cities.
Virginia: Bristol and Southwest Virginia along the I-81 corridor.
Preferred Rate is licensed in AL, AZ, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OK, OR, TN, TX, VA, WA and WI, and operates under American Pacific Mortgage in NV. The Arrowood Team originates primarily in Tennessee and Southwest Virginia.
119 Boone Ridge Dr, Suite 203
Johnson City, TN 37615
(423) 406-1567
arrowoodteam@preferredrate.com
Fifteen minutes tells you your entitlement, your zero-down ceiling, and what the monthly payment actually looks like. No credit pull required to start.
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© 2024 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.
Refinancing may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor for details.
Not available in New York. Licensed as Preferred Rate in AL, AZ, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OK, OR, TN, TX, VA, WA, and WI. Preferred Rate operates under American Pacific Mortgage in NV. AZ BK 1014819. CA #01215943. Regulated by the Colorado Division of Real Estate. Georgia Residential Mortgage Licensee. NV MB 164. Licensed under the Oregon Consumer Finance Act. OK MLO13426.
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Licensed by the Dept of Financial Protection and Innovation under the CRMLA.
The Department of Financial and Professional Regulation (Department) evaluates our performance in meeting the financial services needs of this community, including the needs of low-income to moderate-income households. The Department takes this evaluation into account when deciding on certain applications submitted by us for approval by the Department. Your involvement is encouraged. You may obtain a copy of our evaluation. You may also submit signed, written comments about our performance in meeting community financial services needs to the Department.” (Source: P.A. 101-657, eff. 3-23-21.)
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV
