You served. You earned this benefit. If you want to plant roots in University Place, a VA loan can help you buy with confidence and keep more cash in your pocket. You may be juggling PCS timing, tight inventory, or questions about appraisals and closing costs. In this guide, you’ll learn how VA loans work, what to expect locally, and the exact steps to get from preapproval to keys. Let’s dive in.
Why VA loans work in University Place
VA loans are built to lower your upfront cost and monthly payment. According to the VA, the program offers three core advantages: no required down payment when the price is at or below appraised value, no monthly private mortgage insurance, and competitive interest rates. You can confirm these benefits on the VA purchase program page at the VA Home Loan overview.
Home prices in University Place have been running in the mid 600s. That means your entitlement and the VA appraisal matter when you aim for zero down. In a competitive market, plan for appraisal strategy and seller negotiations early.
VA basics you need to know
Eligibility and your COE
Your Certificate of Eligibility (COE) proves to lenders that you qualify for VA home loan benefits. You can request it online, by mail, or have a lender pull it for you, which is often the fastest route. See the VA’s step‑by‑step instructions for the COE request process.
Entitlement and loan limits
With full entitlement, VA no longer caps your zero‑down loan based on county limits. If you used VA before and have not restored full entitlement, your lender will calculate remaining entitlement and may require a partial down payment. Review how entitlement and limits interact on the VA’s loan limits and entitlement page.
Funding fee and common exemptions
Most buyers pay a one‑time VA funding fee at closing or finance it into the loan. The percentage depends on service category, down payment, and whether it’s your first or subsequent use. Veterans receiving VA compensation for a service‑connected disability and certain surviving spouses are typically exempt. Check current details on the VA’s funding fee and closing costs page.
Closing costs and the 4 percent concession cap
Sellers can pay many standard buyer closing costs. VA also allows separate “seller concessions,” but those extra contributions are capped at 4 percent of the appraised value on the VA Notice of Value. Properly itemize costs and concessions to stay within the rules. The VA outlines these limits in guidance on seller concessions and recent policy updates.
Appraisal, NOV, and protecting your offer
How the VA appraisal works
A VA fee appraiser assesses the property and the VA issues a Notice of Value. If the Notice of Value is at or above your contract price, you can proceed at zero down, subject to lender approval. Learn more about appraisals and valuation steps in the VA’s resources for Veterans.
If the value comes in low
You have options if the NOV is below your price:
- Request a Reconsideration of Value through your lender with stronger comparable sales.
- Renegotiate the purchase price.
- Bring cash to cover the gap between price and NOV.
- Use the VA escape clause if your contract was signed before the NOV.
The VA escape clause
When your offer is accepted before the NOV is issued, the VA escape clause must be in the contract. It lets you walk away without penalty if the property does not appraise to the contracted price. Read the VA’s explanation of the escape clause.
Buying condos and townhomes
Confirm VA project approval early
VA loans require the condominium project to be VA‑accepted before closing. If the building is not approved, your lender or the HOA can pursue approval, which can take several weeks and delay your timeline. Review condo requirements in the VA Lender’s Handbook, Chapter 16, on common‑interest communities.
Local costs and taxes in University Place
Real Estate Excise Tax (REET)
In Washington, the seller typically pays REET. The City of University Place notes a combined rate of about 1.78 percent in its guidance, with the state portion applied in graduated brackets. Always confirm the exact calculation for your contract price. See the city’s REET overview and the Department of Revenue’s REET rules and rates.
Property taxes and your monthly budget
Pierce County sets property tax levies and posts assessed values and billing schedules each year. A VA loan will escrow taxes and insurance like other mortgages, so plan for those costs in your monthly budget. For current local tax information, visit the Pierce County Assessor‑Treasurer.
Proximity to JBLM and timing
University Place sits a short drive from Joint Base Lewis‑McChord, which is why many service members consider the area for off‑base housing. If you are on PCS orders, coordinate your COE, lender preapproval, and appraisal schedule early so you can hit your move‑in target.
Step‑by‑step: Buy with a VA loan in University Place
- Confirm eligibility and get your COE
- Ask your lender to pull it or request it online through the VA. The lender route is often fastest. See how to request a COE.
- Get preapproved with a VA‑experienced lender
- Verify your entitlement status and discuss payment, interest rate options, and any overlays.
- Choose an agent who knows VA contracts
- Your agent should add the escape clause when required, understand the NOV timeline, and structure seller contributions within VA rules.
- Select properties with VA in mind
- For condos, confirm VA project approval up front or begin the approval process early using the VA Handbook reference.
- Write a strong, compliant offer
- If the NOV is pending, include the escape clause and keep seller contributions within the 4 percent concession cap outlined in the VA’s policy update.
- Navigate the appraisal
- If value comes in low, consider a Reconsideration of Value, a price adjustment, or covering the gap. Learn the process in the VA’s valuation resources.
- Close with clarity
- Confirm who pays REET, title, recording, HOA and any non‑allowable fees. Review whether your funding fee is exempt or financed using the VA’s funding fee guide.
Make your move with confidence
Buying in University Place with a VA loan is absolutely doable when you line up your COE, structure the offer correctly, and plan for appraisal and approvals. If you want disciplined guidance from a veteran‑led team that works these steps every week, connect with GQ Home Team Washington to map your purchase from preapproval to closing.
FAQs
Do VA loans always mean zero down in University Place?
- Not always. Zero down depends on the VA appraisal matching your price and your available entitlement, as explained on the VA’s loan limits and entitlement page.
Can I use a VA loan to buy a condo in University Place?
- Yes, if the condo project is VA‑approved. If not, your lender or HOA can seek approval, which can add several weeks. See the VA’s condo requirements.
Can a seller pay my VA funding fee and closing costs?
- Sellers may cover many buyer costs and certain concessions up to 4 percent of the appraised value. Review the VA’s guidance on seller concessions.
What if the VA appraisal comes in low on my University Place home?
- You can pursue a Reconsideration of Value, renegotiate, bring cash for the gap, or use the VA escape clause when applicable. The VA explains options in its appraisal resources.
Who pays real estate excise tax in University Place, WA?
- In Washington, the seller typically pays REET. Check the City of University Place REET guidance and state REET rules for specifics.
