VA Loans
Who Is This Loan For?
- Active-duty service members
- Veterans (any era of service)
- National Guard and Reserve members
- Surviving spouses of veterans
- Those who want zero down payment with no monthly mortgage insurance
What Is a VA Loan?
A VA loan is a mortgage benefit guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. It is widely considered the most powerful mortgage program in the country.
VA loans offer zero down payment, no monthly mortgage insurance, competitive interest rates (typically 0.25-0.5% lower than conventional), and flexible qualification standards. The VA doesn’t lend directly - it guarantees a portion of the loan, which allows private lenders to offer these exceptional terms with reduced risk.
If you’ve served in the military, this benefit was earned through your service. Our job is to make sure you use it to its full advantage. For a full walkthrough, see our VA Loan Complete Guide.
Not sure which loan is right for you? Take the quiz or book a free consultation.
VA Loan Eligibility
Eligibility is based on your service history. You generally qualify if you meet one of these criteria:
Active duty: 90 consecutive days of active service during wartime, or 181 consecutive days during peacetime. Current active-duty members are eligible after 90 days of continuous service.
Veterans: Met the active duty requirements above and were discharged under conditions other than dishonorable.
National Guard / Reserves: 6 years of service in the Guard or Reserves, OR 90 days of active duty under Title 10 orders.
Surviving spouses: Un-remarried surviving spouse of a veteran who died in service or from a service-connected disability. Spouses of POW/MIA service members also qualify.
To prove eligibility, you’ll need a Certificate of Eligibility (COE). We can pull this electronically in most cases - it takes minutes, not weeks.
VA Loan Benefits
The advantages of a VA loan are substantial and often save borrowers tens of thousands of dollars over the life of the loan.
No down payment. Purchase a home with $0 out of pocket. With full entitlement, there is no loan limit - you can borrow as much as a lender will approve. Veterans with partial entitlement (from a previous VA loan still active) are subject to the 2026 conforming limit of $832,750 in most areas, up to $1,249,125 in high-cost areas. This is the headline benefit - no other major loan program offers this.
No monthly mortgage insurance. Unlike FHA’s MIP or conventional PMI, VA loans have zero monthly mortgage insurance, regardless of your down payment. This alone can save $150-$400+ per month compared to other loan types.
Lower interest rates. VA rates are typically 0.25-0.5% lower than conventional rates because the VA guarantee reduces lender risk. Over 30 years on a $300,000 loan, that can save over $25,000.
No minimum credit score. The VA does not set a minimum credit score - your eligibility is based on your military service, not a number on your credit report. Individual lenders may set their own minimums (called “lender overlays”), typically 580-620, but the VA program itself has no score requirement. Working with a VA-experienced lender makes a significant difference if your credit is less than perfect.
No prepayment penalty. Pay off your loan early, make extra payments, or refinance anytime without fees.
VA loans are reusable. Your VA entitlement isn’t a one-time benefit. You can use it multiple times throughout your life - sell your home, restore your entitlement, and use it again.
Assumable. VA loans can be assumed by a qualified buyer, which can be a major selling point in a high-rate environment.
The VA Funding Fee
Instead of mortgage insurance, VA loans charge a one-time VA funding fee that can be paid at closing or rolled into the loan. The fee varies based on your down payment, whether it’s your first VA loan, and your type of service. Current rates (effective through November 14, 2031):
Purchase and Construction Loans:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Other Loan Types:
| Loan Type | Funding Fee |
|---|---|
| VA Streamline Refinance (IRRRL) | 0.5% |
| VA Cash-Out Refinance (first use) | 2.15% |
| VA Cash-Out Refinance (subsequent) | 3.3% |
| Manufactured Home | 1.0% |
| Loan Assumption | 0.5% |
Who is exempt from the funding fee:
- Veterans receiving VA compensation for a service-connected disability
- Veterans eligible for disability compensation but receiving retirement or active-duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Purple Heart recipients
- Service members with a pre-discharge disability claim
On a $300,000 loan with no down payment (first use), the fee is $6,450. It can be rolled into the loan so you don’t need extra cash at closing. When compared to the total cost of PMI or MIP on other loan types, VA borrowers still come out ahead.
VA Loan Property Requirements
VA loans have specific property requirements to protect the borrower:
Occupancy: The home must be your primary residence. You must intend to move in within 60 days of closing. VA loans cannot be used for vacation homes or investment properties at purchase - though you can keep a VA-financed home as a rental if you later PCS or relocate. For investment property financing, consider a DSCR loan that qualifies based on rental income.
VA appraisal: A VA-approved appraiser will assess both value and condition. The VA’s Minimum Property Requirements (MPRs) ensure the home is safe, structurally sound, and sanitary. Common issues flagged include peeling paint, faulty electrical systems, and roof damage.
Property types: Single-family homes, condos (VA-approved), manufactured homes (on permanent foundations), and multi-unit properties up to 4 units (if you live in one).
VA Loan Qualification Details
Debt-to-Income Ratio
The VA guideline for DTI is 41%, but this is not a hard cap. VA underwriters evaluate your full financial picture using a unique metric called residual income - the amount of money left over each month after all major expenses are paid. If your residual income is strong, a DTI above 41% can be approved. This makes VA loans more flexible than conventional or FHA loans for borrowers with higher debt loads.
Medical Collections
Per VA Pamphlet 26-7, medical collections and charged-off medical accounts do not need to be counted in your qualifying ratios and should not be held against you when evaluating creditworthiness. Non-medical collections without a listed minimum payment are counted at 5% of the outstanding balance.
VA Loan Process
Step 1 - Certificate of Eligibility (COE). We pull your COE electronically - usually available same day. You’ll need your DD-214 (veterans) or a statement of service (active duty).
Step 2 - Pre-approval. We review your credit, income, and debts. VA pre-approvals carry strong credibility with sellers.
Step 3 - Home search and offer. Shop with confidence knowing exactly what you qualify for. From Fort Liberty in North Carolina to MacDill AFB in Tampa to any base across the country, we can help.
Step 4 - VA appraisal. The VA assigns an approved appraiser. Turnaround varies by area (typically 1-2 weeks). If the home doesn’t meet MPRs, repairs must be completed before closing.
Step 5 - Underwriting and closing. VA underwriting follows specific guidelines but the timeline is similar - 30-45 days from contract to keys.
Not sure how much home you can afford? Use our affordability calculator.
VA Loans Are Assumable
VA loans are assumable, meaning a future buyer can take over your mortgage at its original interest rate - subject to VA approval and the buyer meeting eligibility requirements. The buyer does not need to be a veteran to assume a VA loan, though a non-veteran assuming the loan means your entitlement remains tied up until the loan is paid off. In a high-rate environment, assumability can make your home significantly more attractive to buyers.
Frequently Asked Questions
What credit score do I need for a VA loan?
The VA has no minimum credit score requirement - none at all. Your eligibility comes from your military service, not your credit score. Individual lenders may have their own minimums, but working with a VA-experienced lender gives you the best chance of approval even with lower credit. If you’re having trouble finding a lender, reach out - we work with veterans across the credit spectrum.
Is there a VA loan limit?
With full entitlement, there is no VA loan limit - you can borrow as much as your lender approves with $0 down. If you have remaining (partial) entitlement from a previous VA loan, the 2026 conforming loan limits apply: $832,750 in most areas and up to $1,249,125 in high-cost areas.
Can I use a VA loan more than once?
Yes. VA loan entitlement is reusable. After selling a home and paying off the VA loan, your entitlement is restored. You can even have two VA loans simultaneously if you have enough remaining entitlement.
How much is the VA funding fee?
For purchase loans, the funding fee ranges from 1.25% to 3.3% depending on your down payment and whether it’s your first VA loan. First-time VA borrowers with no down payment pay 2.15%. The fee can be rolled into the loan so you don’t need extra cash at closing. Veterans with service-connected disabilities, Purple Heart recipients, and surviving spouses receiving DIC are fully exempt.
Do I have to be a first-time homebuyer to use a VA loan?
No. VA loans are available to eligible veterans regardless of whether they’ve owned a home before. You can use the benefit for your first home, your fifth home, or a refinance.
Can I use a VA loan for a condo?
Yes, but the condo complex must be on the VA’s approved list. If it’s not approved, we can help submit the complex for approval, though this adds time to the process.
Can I use a VA loan to buy a multi-unit property?
Yes. VA loans allow you to purchase up to a 4-unit property as long as you live in one of the units as your primary residence. The rental income from the other units can help you qualify for the loan. This is one of the most powerful wealth-building strategies available to veterans.
Can my spouse’s income count toward qualification?
Yes. Both military and civilian spouse income can be used for qualification, even if the spouse is not a veteran. The non-veteran spouse does not need to be on the VA loan itself.
What if the appraisal comes in low?
You have several options: negotiate a lower price with the seller, pay the difference out of pocket, request a Reconsideration of Value (ROV) with supporting comparable sales data, or walk away from the deal using the VA amendatory clause.
Can I build a new home with a VA loan?
Yes. VA construction loans let eligible veterans and service members build a custom home with zero down payment. Fewer lenders offer this program, so ask during your consultation.
Can I refinance my existing VA loan?
Yes. The VA IRRRL streamline refinance is one of the easiest ways to lower your rate - no appraisal, no income verification, and minimal paperwork in most cases.
