A veteran customer I met in Jackson asked if they could use a VA loan even though there are no military bases nearby. This question comes up more often than you might think.

To answer directly, yes, it is possible. The VA loan program is not limited to areas near military bases; veterans, active duty service members, and some spouses can apply from anywhere in the country. In simpler terms, eligibility is determined by service history, not by the location of Jackson.

Looking at the price range, the average home value in Jackson is $85,739 according to Zillow, which is lower than many small towns in Missouri or Michigan. In contrast, Redfin reported a median sale price of $145,000 over the three months leading up to May, marking a 11.9% increase, while other data showed a median sale price of $149,900 as of July. The significant difference between the average and median values indicates considerable variability among listings.

Military bases in Mississippi are concentrated on the Gulf Coast, such as Keesler Air Force Base in Biloxi and Camp Shelby in Hattiesburg, which are quite far from Jackson. However, the Jackson Veterans Affairs Medical Center is located there, and several lending institutions specializing in VA loans operate in Jackson, making it relatively easy to access these loans. The conditions of 0% down payment and no PMI still apply.

In this price range, FHA loans are also worth comparing. If your credit score is above 580, you can start with a 3.5% down payment, making it a realistic option for first-time homebuyers who are not veterans. However, it's important to understand that if the down payment is less than 10%, mortgage insurance will be required throughout the loan term, which differs from the funding fee structure of VA loans.

The second question the customer asked was whether they could proceed with both a VA loan and a conventional loan. In simpler terms, when purchasing one property at a time, you only need to choose one program. However, I advised them to obtain a Certificate of Eligibility (COE) in advance, as this can save time during the offer stage, so it's better to apply before deciding on a property. I also informed them that if their credit score is still low, the lender may require additional documentation even if they qualify for VA loans.

While VA loans do not require a down payment, closing costs must be prepared separately. These costs are typically around 2-5% of the loan amount, and it is possible to negotiate for the seller to cover some of these costs, which is something to consider when making an offer. In markets like Jackson, where property prices are lower, such negotiations tend to be more feasible.

If a family prioritizes school districts, I recommend checking local variations using GreatSchools ratings, and since boundaries change frequently, it's wise to verify assigned schools before signing a contract. For families relocating from other states, Mississippi's property tax rate may seem low, but it's advisable to consider other costs like insurance as well. For families just arriving from Korea and preparing to settle down, I suggest getting estimates starting with FHA loans, which can be processed even with a short credit history.

Given the significant variability in property prices, relying solely on average values to set a budget can lead to confusion when searching for actual listings. Properties priced in the $70,000 range and those in the $240,000 range can exist within the same Jackson area, so I recommend narrowing down your areas of interest first and then checking recent sale prices in those neighborhoods. Some people also consider rental income, but rather than simply looking at low purchase prices to determine profitability, it's safer to factor in vacancy periods and maintenance costs as well.

Ultimately, the distance to a military base is not a determining factor for using a VA loan, as confirmed in this consultation. If eligible, it is worth considering a VA loan regardless of location. This article is not investment or legal advice, and I recommend consulting with a lender and professionals before finalizing any contracts.