By Brandon House, REALTOR®
If you served, you earned one of the best home loans in the country. Most veterans I meet in OKC and Norman know the VA loan means "no down payment." Fewer know about the funding fee exemption, Oklahoma's property tax break for 100% disabled vets, or why some listing agents still steer sellers away from VA offers.
This guide covers all of it, specific to the Oklahoma City metro and Norman. I'm a veteran and a REALTOR® with The House Collective Group, and VA buyers are a big part of my business. Bookmark this page. I keep it updated.
What a VA loan actually gets you
- $0 down. No down payment required, as long as the price is at or below the appraised value.
- No PMI. Conventional and FHA buyers with less than 20% down pay mortgage insurance every month. You don't.
- Competitive rates. VA loans usually price at or below conventional rates.
- No loan limit with full entitlement. If you've never used your benefit, or you've used it and restored it, the VA doesn't cap how much you can borrow. Your lender still decides what you qualify for based on income and debt.
- Reusable. You can use it again on your next home, and in some cases have two VA loans at once (common when you PCS and keep the first house as a rental).
Who qualifies
You'll generally be eligible if you're:
- A veteran with qualifying service and a discharge other than dishonorable
- Active duty (usually after 90 continuous days)
- National Guard or Reserve with qualifying service
- A surviving spouse who meets VA requirements
Your lender pulls your Certificate of Eligibility (COE) in minutes. You don't need to request it yourself first. For credit scores, debt-to-income and residual income, read my breakdown: VA Loan Requirements in Oklahoma: What You Actually Need to Qualify.
The VA funding fee (and who doesn't pay it)
The funding fee is a one-time charge that keeps the program running. You can roll it into the loan.
Down payment | First use | Subsequent use |
|---|---|---|
Less than 5% | 2.15% | 3.3% |
5% to less than 10% | 1.5% | 1.5% |
10% or more | 1.25% | 1.25% |
On a $250,000 home with $0 down and first use, that's $5,375.
You pay $0 funding fee if you:
- Receive VA disability compensation (any rating, including 10%)
- Are rated eligible for compensation but are receiving retirement or active-duty pay instead
- Are an active-duty Purple Heart recipient
- Are a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
If you have a pending disability claim, tell your lender. If your rating comes through before closing, the fee can drop off.
Oklahoma benefits that stack on top
This is where buying in Oklahoma gets good for veterans.
- 100% disabled veterans pay no property tax on their homestead. If you're rated 100% permanent and total, Oklahoma exempts the full value of your primary home. No cap. You file OTC Form 998 with the county assessor (Oklahoma County, Cleveland County, etc.) along with your VA benefits letter. Over 30 years, this is often worth more than the down payment you didn't make.
- Sales tax exemption. 100% disabled veterans can get an Oklahoma sales tax exemption card (up to $25,000 in purchases a year). You register with the Oklahoma Veterans Registry first. That covers furniture, appliances and everything else you buy for the new house.
- Standard homestead exemption. Every owner-occupant should file this one too. It's a small break, but it also caps how fast your assessed value can rise.
- Military retirement is exempt from Oklahoma income tax. Not a housing benefit, but it's a big reason retirees choose to settle here.
More detail here: 100% Disabled Veteran Benefits in Oklahoma: What They Mean for Your Home.
Step by step: buying with a VA loan in OKC or Norman
- Get pre-approved with a lender who closes VA loans every month. Not every lender is equally good at VA. Ask how many they closed last quarter. I'm happy to give you names of lenders I trust.
- Pick your area. Commute, schools and budget. Working at Tinker? See below.
- Tour and write offers. I write VA offers so they look strong to sellers: clear terms, a realistic timeline, and an explanation of how the appraisal works so the listing agent doesn't panic.
- Inspection. The VA appraisal is not an inspection. Always get your own.
- VA appraisal. A VA-approved appraiser checks value and the VA's Minimum Property Requirements (more below).
- Underwriting and clear to close. Usually 30 to 45 days from contract.
- Close and file your exemptions. Homestead right away, and Form 998 if you're 100% P&T.
The VA appraisal: what trips deals up
The VA appraiser checks that the home is worth the price and that it's safe, sound and sanitary. Common items that get flagged in central Oklahoma homes:
- Roofs near the end of their life (hail is a big factor here)
- Peeling paint on homes built before 1978
- Broken windows, missing handrails, exposed wiring
- Heating that doesn't work
- Wood rot and termite damage. Plan on a termite (WDI) inspection; most VA lenders here require one.
If the appraisal comes in low, you have options: renegotiate, have the seller cover part of the gap, pay the difference in cash, or request a Reconsideration of Value. If repairs get called out, the seller usually fixes them before closing. This is where having an agent who's worked VA deals matters.
Closing costs, seller concessions and agent fees
- Closing costs usually run a few percent of the price. VA limits some of the fees you can be charged.
- Seller concessions are capped at 4% of the price. That can cover your funding fee, prepaid taxes and insurance, or paying off a debt to help you qualify. Normal closing costs the seller pays don't count toward the 4%.
- Your agent's commission. After the 2024 changes to how agents get paid, the VA allowed veterans to pay their own buyer's agent. Most of the time we still negotiate for the seller to cover it. I'll walk you through exactly how it works before we ever write an offer, so there are no surprises.
Where VA buyers live around OKC and Norman
- Midwest City and Del City. Closest to Tinker. Good value, lots of homes in VA-friendly price ranges.
- Choctaw and Harrah. More land and a quieter feel, still an easy Tinker commute.
- Moore. Central, quick to I-35 and I-240, and close to both OKC and Norman.
- Norman. OU, a strong local economy, and north Norman is a reasonable drive to Tinker.
- Edmond. Higher prices and strong schools. Popular with senior NCOs and officers.
- Yukon and Mustang. West-side growth, newer construction.
PCSing to Tinker? Read PCSing to Tinker AFB: Where Military Families Actually Live.
Common VA loan myths
- "Sellers don't accept VA offers." Some listing agents still think VA deals are a hassle. A well-written offer with a prepared buyer competes just fine.
- "VA loans take longer." A good VA lender closes in about the same time as conventional.
- "I can only use it once." You can use it again and again.
- "I can't buy a condo with VA." You can, as long as the condo project is VA-approved. Check before you fall in love with one.
- "I can buy an investment property." Not directly. It has to be your primary home. You can buy a duplex, triplex or fourplex and live in one unit, though.
VA loan FAQ for Oklahoma buyers
Can I use a VA loan to buy a house in Oklahoma City with no money down? Yes. VA loans require no down payment if the price is at or below the appraised value. You'll still have some closing costs and an earnest money deposit, which a seller can often help cover.
Do I need a minimum credit score? The VA doesn't set one. Most lenders want around 580 to 620. See the requirements guide for details.
Do 100% disabled veterans pay property tax in Oklahoma? No, not on their homestead. If you're rated 100% permanent and total, file OTC Form 998 with your county assessor.
Can I use a VA loan in Norman? Yes. VA loans work anywhere in Oklahoma, including Norman, Moore, Edmond and every Tinker-area suburb.
Do I need a REALTOR® who knows VA loans? You don't have to have one, but it helps. Most problems with VA deals come from appraisal repairs, offer terms and seller misunderstandings, and an agent who's handled them prevents most of that.
Ready to use your VA benefit?
I'm a veteran helping veterans and military families buy in Oklahoma City, Norman and the surrounding metro. Whether you're PCSing in, retiring here, or ready to stop renting, I'll walk you through every step.
Contact me to set up a 15-minute call. No pressure, just a plan.
