VA Loans 101: A Complete Guide for Fort Campbell Service Members

If you’re stationed at Fort Campbell and want to buy in Clarksville or Montgomery County, a VA loan can be a strong option: $0 down is possible in many cases and there’s no monthly mortgage insurance. The key is qualifying cleanly and budgeting for the real cash-to-close items so your PCS move stays stress-free.

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs that’s designed to help eligible service members, Veterans, and some surviving spouses buy or refinance a primary residence. A VA funding fee is a one-time charge that helps keep the program running and can usually be financed into the loan. Residual income is a VA guideline that looks at your remaining monthly income after major debts—an extra safety check that’s especially helpful for military families managing PCS costs.

• VA loans are built for primary homes—great for buying near Fort Campbell, not for investment properties.
• Many buyers can do $0 down, but you still need cash for appraisal/inspections and any negotiated costs.
• The VA funding fee is usually 2.15% for first-time use with less than 5% down (VA.gov chart effective April 7, 2023).
• Rates change weekly; as of June 4, 2026, Freddie Mac’s PMMS average 30-year fixed rate was 6.48%.
• Start with a strong Certificate of Eligibility (COE) and a real pre-approval before touring homes in Clarksville TN.

Who a VA loan is for (and what it can buy)

A VA loan is meant for a primary residence—where you’ll live most of the year. That’s perfect for military relocation Clarksville moves and families who want homes for sale near Fort Campbell, but it means you generally can’t use a VA loan to buy a pure rental property.

In Middle Tennessee, I often see VA buyers purchasing single-family homes, townhomes, and some approved condos. You can also use a VA loan to refinance an existing mortgage, including a streamline refinance (IRRRL) when it makes sense.

Eligibility basics: COE, entitlement, and occupancy

A Certificate of Eligibility (COE) is the VA document that confirms you’re eligible for the benefit and shows available entitlement. Don’t let the acronyms intimidate you—this is one of the first things we verify during mortgage pre-approval Clarksville planning.

Occupancy matters: typically you must intend to move in soon after closing. For many Fort Campbell families, that lines up naturally with PCS timing, school schedules, and lease end dates.

Down payment, closing costs, and the VA funding fee (what to budget)

$0 down is possible, but budget for earnest money, inspection, and appraisal-related costs. In the Clarksville housing market, seller concessions can sometimes help with allowable closing costs—especially if a home has been sitting.

Then there’s the VA funding fee. According to VA.gov (effective April 7, 2023), first-time VA loan use with less than 5% down has a 2.15% funding fee, while subsequent use with less than 5% down is 3.3%. Some borrowers are exempt (for example, certain service-connected disability scenarios) as outlined by VA.gov.

Good news for planning: the funding fee can usually be financed into the loan amount instead of paid out of pocket at closing. Also, VA News notes that borrowers can deduct funding fees starting in 2026 (VA News (2026))—talk with a tax professional about your situation.

How VA loans qualify you: credit, DTI, and residual income

Most people know credit score matters, but VA underwriting is more holistic than a single number. Debt-to-income (DTI) is your monthly debt payments divided by your gross monthly income, and it helps lenders measure affordability. VA guidelines also emphasize residual income, which is the money you have left each month after major obligations. That matters for active-duty households who may be juggling childcare, car payments, and the costs of setting up a new home in Montgomery County.

Rates and payment planning for 2026 buyers

Mortgage rates can shift quickly. For context, the 30-year fixed-rate mortgage averaged 6.48% as of June 4, 2026 per Freddie Mac PMMS (2026), and the same 6.48% observation is posted on FRED (2026). Your personal rate depends on credit, loan details, and the day you lock.

A step-by-step VA loan game plan for Fort Campbell buyers

1. Confirm eligibility: COE + a quick benefit review.
2. Build a real budget: target payment, cash to close, and a repair/PCS buffer.
3. Get fully pre-approved: not just pre-qualified—income, assets, and credit reviewed.
4. Shop with strategy: prioritize homes that fit VA appraisal and condition standards.
5. Negotiate smart: consider seller concessions and closing timelines that match your move.
6. Lock and close: lock rate, finalize insurance, and plan your move-in date.

Related reading: [INTERNAL LINK: VA loan myths] · [INTERNAL LINK: Home inspection basics] · [INTERNAL LINK: How to get pre-approved]

By Kate Matties-Deiboldt, NMLS #18487, VanDyk Mortgage

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