VA Home loans. Are they worth it?

I just used one. There were some fees I had to pay, but nothing like what I would've paid otherwise. I'm sure there may be better options for you as every person and their situation is different, but you should try a mortgage calculator. In my experience so far, I'm pleased with mine.

First off, there is no "VA Loan". The loan is from a financial institution, not the Feds. Second, VA only backs up the typical 20% Down Payment. You still have to qualify for the loan at full amount. People who have a regular income that meets the threshold typically qualify. VA backed loans are typically a bit higher on the APR because most are squeezing into it, hence are riskier. That's why a bit down the road you look at a conventional refinance opportunity. That isn't as likely now due to the relatively low rates. You typically refi to a conventional if you can drop the interest 1% or better. I just did that to go from 3.8 to 2.5%. Net result is making the same payment and taking about 5 years off the loan. Also, the sharks out there that advertise 1.8% have so many visible and hidden up front fees, a simple calculation would show you're better off with 2.5% with maybe a grand or two in fees. Always go through the disclosures with a fine toothed comb. For the retired folk, I recommend not paying these loans off but take that money and have a financial house make 7-8%/year on it. You'll be ahead.

You just have to run the numbers through a mortgage calculator to see which will be the better option for you.

As for a second home, the VA will only cover you for a home that will be your primary residence. You can use it over and over as you move. You can rent your home out and leave it as a VA loan. You can't take out a VA loan on a property that will not be your primary residence at the time of your application