VA Home Loan — Your Earned Benefit for Homeownership

One of the most powerful benefits you earned through service. No down payment, no PMI, and competitive rates that can save you tens of thousands over the life of your loan.

💡 If you receive VA disability compensation at any rating (even 0%), you are EXEMPT from the VA funding fee — saving you thousands.
Section 1

What Is a VA Loan?

A VA loan is a government-backed mortgage available to veterans, active-duty service members, and eligible surviving spouses. The Department of Veterans Affairs guarantees a portion of the loan, which allows lenders to offer significantly better terms than conventional mortgages.

🏠 No Down Payment

Purchase a home with $0 down, up to the conforming loan limit. Keep your savings for moving costs and emergencies.

🚫 No PMI

No private mortgage insurance required — saves you $100-$300/month compared to conventional loans with less than 20% down.

📉 Lower Interest Rates

Typically 0.25-0.5% lower than conventional mortgages. On a $300K loan, that can save $30,000+ over 30 years.

💰 Limited Closing Costs

The VA restricts what lenders can charge you in closing costs, keeping your out-of-pocket expenses lower.

✅ No Prepayment Penalty

Pay off your loan early or make extra payments any time without penalty fees.

🛡️ Foreclosure Avoidance

VA loan servicers are required to work with veterans who are struggling to make payments before foreclosure.

Section 2

Who's Eligible?

Service Requirements

  • Veterans: 90+ days wartime service or 181+ days peacetime
  • Active Duty: After 90 continuous days of service
  • National Guard/Reserve: After 6 years of service (or 90 days activated under Title 10)
  • Surviving Spouses: Of veterans who died from service-connected causes or while on active duty

Getting Your COE

Your Certificate of Eligibility (COE) proves to lenders that you qualify for a VA loan. Three ways to get it:

  1. Online: Through va.gov (fastest)
  2. Through your lender: Most VA-approved lenders can pull it instantly
  3. By mail: Submit VA Form 26-1880
Section 3

VA Funding Fee

The funding fee is a one-time fee that helps sustain the VA loan program. It can be rolled into your loan so you don't have to pay it out of pocket.

Down Payment First Use Subsequent Use
None2.15%3.3%
5% or more1.5%1.5%
10% or more1.25%1.25%

Funding Fee EXEMPTIONS

  • VA disability compensation recipients — any rating, even 0% service-connected compensable
  • Purple Heart recipients currently serving on active duty
  • Surviving spouses receiving DIC
Example savings: On a $300,000 loan, the funding fee exemption saves you $6,450 to $9,900. This is one of the most valuable financial benefits of having a VA disability rating.

Check our Benefits by Rating page to see the full list of benefits at each rating level, including the funding fee waiver.

Section 4

Types of VA Loans

🏠 Purchase Loan

Buy a home with no down payment required. The most common VA loan type.

💵 Cash-Out Refinance

Refinance your existing mortgage and take cash from your home equity for any purpose.

📉 IRRRL (Streamline Refinance)

Interest Rate Reduction Refinance Loan — lower your rate with minimal paperwork. No appraisal or credit underwriting typically required.

🏛️ Native American Direct Loan (NADL)

For eligible Native American veterans to purchase, build, or improve a home on federal trust land.

♿ Adapted Housing Grants

For severely disabled veterans to modify or build an adapted home: SAH grant (up to $109,986) and SHA grant (up to $44,299).

Section 5

VA Loan Limits

Full Entitlement

No loan limit if you've never used your VA loan benefit, or have paid off a previous VA loan and restored your entitlement.

Reduced Entitlement

County-specific conforming loan limits apply if you have an active VA loan or previously defaulted on one.

High-Cost Areas

Jumbo VA loans are available in high-cost counties, with higher limits to match local housing markets.

Section 6

Common VA Loan Myths — Busted

Myth: "VA loans take forever to close"

Fact: Average closing time is 40-50 days, comparable to conventional loans.

Myth: "Sellers don't like VA offers"

Fact: In 2024 the VA removed the VA amendatory clause requirement, making VA offers more competitive than ever.

Myth: "You can only use your VA loan once"

Fact: You can reuse your VA loan benefit after paying off the previous loan and restoring your entitlement.

Myth: "VA loans are only for first-time buyers"

Fact: There is no limit on how many times you can use the VA loan benefit.

Section 7

How to Get Started

1
Get your COE — online at va.gov, through a lender, or by mail with VA Form 26-1880
2
Get pre-approved with a VA-approved lender — shop around for the best rate
3
Find a home and make an offer — work with a veteran-friendly real estate agent
4
VA appraisal — the lender orders this to verify the home's value and that it meets VA minimum property requirements
5
Close on the home — sign the paperwork, get your keys, and move in
Resources

Official VA Links & Resources