VA Loans in Elizabethtown, KY — A Fort Knox Buyer's Guide

If you're stationed at Fort Knox and thinking about buying a home, a VA loan is almost certainly your best option. The VA loan benefit is one of the most powerful financial tools available to service members — and in a market like Elizabethtown, where home prices are well below the national average, it can put you in a home with zero out-of-pocket cost on day one. Here is everything you need to know about using a VA loan to buy in Hardin County.

VA Loan Basics

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. The VA doesn't lend the money directly — private lenders (banks, credit unions, mortgage companies) issue the loan, and the VA guarantees a portion of it. This guarantee reduces the lender's risk, which is why VA loans come with benefits that no conventional or FHA loan can match:

• Zero down payment. You can finance 100% of the home's purchase price. No 3.5% FHA minimum. No 5% conventional minimum. Zero.
• No private mortgage insurance (PMI). Conventional loans require PMI when you put less than 20% down, typically adding $100-$300/month. VA loans never require PMI — at any loan-to-value ratio.
• Competitive interest rates. VA loan rates are typically 0.25-0.50% lower than conventional rates because of the government guarantee. On a $250,000 loan, that difference saves thousands over the life of the mortgage.
• No prepayment penalty. Pay off your loan early without fees — useful if you sell when you PCS.
• Limited closing costs. The VA limits what lenders can charge in closing costs, and sellers are permitted to pay up to 4% of the purchase price toward your costs.
• Reusable benefit. Your VA loan entitlement is not a one-time use. You can use it again at your next duty station after paying off or selling the current home.

Who Is Eligible for a VA Loan?

VA loan eligibility is based on your service record. You generally qualify if you meet one of the following criteria:

• Active duty: 90 consecutive days of active service during wartime, or 181 days during peacetime. Most service members currently at Fort Knox easily meet this threshold.
• National Guard / Reserves: 6 years of service in the Selected Reserve or National Guard, or 90 days of active service under Title 10 orders.
• Veterans: Met the active duty service requirements above and were discharged under conditions other than dishonorable.
• Surviving spouses: Unremarried surviving spouses of service members who died in the line of duty or from a service-connected disability.

To confirm your eligibility, you will need a Certificate of Eligibility (COE) from the VA. Your lender can pull this electronically in most cases, or you can request it through eBenefits. This takes minutes, not days.

VA Loans in Hardin County: What Makes It Ideal

Not all housing markets are equally friendly to VA buyers. Elizabethtown and Hardin County happen to be one of the best markets in the country for VA loan purchases, and here is why:

• Affordable home prices. The median home price in Elizabethtown is approximately $250,000 — well below the VA loan limit threshold (which has been effectively eliminated for first-time VA loan users with full entitlement). You do not need to worry about loan limit caps here.
• BAH covers the mortgage. At most ranks, your Fort Knox BAH fully covers the PITI payment on a median-priced home. An E-5 with dependents ($1,647/month) can comfortably finance a $250,000-$270,000 home. An O-3 with dependents ($2,421/month) has room for homes in the $350,000-$400,000 range.
• Seller-friendly to VA buyers. In some hot markets, sellers avoid VA offers due to the appraisal requirement. In Elizabethtown, the market is balanced enough that sellers regularly accept VA offers without issue. Local listing agents are accustomed to working with VA transactions.
• Strong VA lender presence. The Fort Knox area has multiple lenders who specialize in VA loans and process them daily. This means faster closings and fewer surprises compared to markets where VA loans are uncommon.

The VA Appraisal Process

Every VA loan requires a VA appraisal — an independent assessment of the home's value and condition ordered through the VA's system (not chosen by the buyer or lender). The VA appraisal serves two purposes:

• Value verification: The appraiser confirms the home is worth at least what you're paying for it. If the appraisal comes in below the contract price, you have options: renegotiate the price, pay the difference out of pocket, or walk away.
• Minimum Property Requirements (MPRs): The appraiser checks that the home meets the VA's basic safety and livability standards — functional heating, safe roofing, adequate water supply, no lead paint hazards, etc. These are not as strict as a full inspection, but they do occasionally flag issues that need to be addressed before closing.

In the Elizabethtown market, VA appraisals typically come in at or above the contract price. The area's steady appreciation and ample comparable sales data make low appraisals relatively uncommon. Appraisal turnaround time is generally 7-14 business days after the order is placed.

VA Loan Myths Debunked

There is a surprising amount of misinformation about VA loans — even within the military community. Here are the facts:

Myth: VA loans take forever to close.

Reality: A VA loan with an experienced lender closes in 30-45 days — the same timeline as a conventional loan. The key is using a lender who processes VA loans regularly and knows the system. In the Fort Knox area, this is standard practice.

Myth: Sellers won't accept VA offers.

Reality: In highly competitive markets (think Northern Virginia or San Diego), some sellers prefer conventional offers. In Elizabethtown, VA offers are extremely common — sellers and their agents deal with them regularly and have no reason to avoid them. A clean VA offer with a pre-approval letter is as strong as any other offer here.

Myth: You can only use a VA loan once.

Reality: Your VA loan entitlement is reusable. Once you sell the home or pay off the mortgage, your entitlement is restored. You can even have two VA loans simultaneously under certain conditions (remaining entitlement). This is particularly relevant for military families who buy, PCS, and want to keep the property as a rental.

Myth: VA loans require perfect credit.

Reality: The VA does not set a minimum credit score. Individual lenders set their own requirements, but most VA lenders approve borrowers with scores of 620 or above — and some go lower. VA loans are more forgiving than conventional loans on credit history.

Myth: The VA funding fee makes it too expensive.

Reality: The VA funding fee (typically 2.15% for first-time use with zero down) can be rolled into the loan amount. On a $250,000 home, that adds about $5,375 to your mortgage — which translates to roughly $35/month at current rates. Compare that to the $150-$300/month PMI you would pay on a conventional loan with less than 20% down. The math strongly favors the VA loan. Note: veterans with service-connected disabilities are exempt from the funding fee entirely.

Using BAH as Qualifying Income

When applying for a VA loan, lenders count your full military compensation as qualifying income — including base pay, BAH, BAS, and any special pays or allowances. Since BAH is tax-free, lenders often "gross it up" by 25% when calculating your debt-to-income ratio, effectively increasing your buying power.

For example, an E-5 receiving $1,647/month in BAH may have that counted as approximately $2,059/month for qualifying purposes. Combined with base pay and BAS, this gives most mid-grade enlisted service members enough qualifying income to purchase homes in the $250,000-$290,000 range in Elizabethtown neighborhoods — which is right in the sweet spot for the local market.

Steps to Get a VA Loan in Elizabethtown

1. Get pre-approved. Contact a VA-experienced lender and provide your LES, orders, and authorize a credit pull. Pre-approval takes 1-2 weeks and costs nothing.
2. Find a home. Work with a local realtor who understands VA transactions and the military timeline. Start your search in the off-post housing communities that match your BAH budget.
3. Make an offer. Your realtor will submit your offer with your VA pre-approval letter. In Elizabethtown, most offers are accepted within 1-3 days.
4. VA appraisal and inspection. Once under contract, the lender orders the VA appraisal. You should also order a separate home inspection (the VA appraisal is not a substitute for a thorough inspection).
5. Close on the home. After appraisal and underwriting are complete, you close at a local title company. Bring your ID and sign the paperwork. With seller concessions covering closing costs (common in this market), you may walk in with nothing and walk out with keys.