VA Loans
VA loans are the most powerful mortgage benefit available to those who've served. With zero down payment, no PMI ever, competitive rates, and flexible qualification, VA loans help veterans achieve homeownership with significant savings.
Program Details
Key Benefits
- Zero down payment
- No monthly mortgage insurance
- Competitive interest rates
- Flexible credit guidelines
- No loan limits (full entitlement)
- Funding fee waived for disabled veterans
Program Tags
Who It's Best For
- Active-duty service members
- Veterans with honorable discharge
- National Guard and Reserve members (6+ years or activated)
- Surviving spouses of veterans who died in service or from service-connected disability
- Current and former commissioned officers of NOAA and Public Health Service
Advantages
- Zero down payment required—buy with no cash for down payment
- No monthly mortgage insurance (PMI) ever
- Typically lower interest rates than conventional loans
- No maximum loan amount with full entitlement
- Flexible credit and DTI requirements (residual income focus)
- VA funding fee waived for disabled veterans
- Closing costs can be paid by seller
- Assumable by qualified buyers (including non-veterans)
- No prepayment penalty
- VA support if you have trouble making payments
Considerations
- •VA funding fee adds 2.15-3.3% to loan (unless exempt)
- •Primary residence only—no investment properties
- •VA appraisal can be strict on property condition
- •Some sellers prefer conventional offers
- •Surviving spouse eligibility has specific requirements
Eligibility Requirements
- Active-duty service members (90 consecutive days during wartime, 181 days during peacetime)
- Veterans with honorable or general discharge
- National Guard/Reserve members with 6+ years of service or 90+ days of active duty
- Surviving spouses of veterans who died in service or from service-connected disability
- Must obtain Certificate of Eligibility (COE)
Additional Requirements
- Certificate of Eligibility (COE) from the VA
- Sufficient residual income after major expenses
- Property must be primary residence
- VA appraisal with Minimum Property Requirements (MPR)
- Funding fee (unless exempt) of 2.15-3.3% (can be financed)
- Property must be move-in ready (no major repairs needed)
Pro Tips
- Check if you're exempt from the VA funding fee—veterans with 10%+ service-connected disability pay $0
- Your VA entitlement can be restored after paying off a VA loan, allowing you to use VA benefits again
- VA has no maximum DTI—they focus on residual income, which measures money left after bills
- You can use VA loans multiple times throughout your life, even simultaneously in some cases
- VA allows non-veteran spouses and co-borrowers, though this may affect loan terms
- Consider VA IRRRL (Interest Rate Reduction Refinance Loan) for easy rate drops later—minimal paperwork required
- VA allows sellers to pay all of your closing costs plus up to 4% in concessions
Also Known As
Helpful Resources
You can obtain your COE online through the VA's eBenefits portal, through your lender (fastest method—we can pull it instantly in many cases), or by mail using VA Form 26-1880. Active-duty members need a statement of service; veterans need DD-214.
The VA funding fee helps sustain the VA loan program. First-time users pay 2.15% with 0% down (lower with larger down payments). Subsequent users pay 3.3%. The fee is waived entirely for veterans with 10%+ service-connected disability, Purple Heart recipients, and surviving spouses.
For veterans with full entitlement, there is no maximum loan amount—you can finance as much as you qualify for with 0% down. Loan limits only apply to veterans with reduced entitlement (typically those with an existing VA loan not yet paid off).
The VA itself has no minimum credit score requirement. However, most lenders require 580-620+. We work with investors who serve veterans across the credit spectrum. Even with lower scores, VA's residual income focus can help you qualify.
Yes, in certain situations. If you have remaining entitlement after your first VA loan, you can use it for a second primary residence. This commonly occurs when military members PCS to a new location and keep their previous home as a rental.
Instead of just debt-to-income ratio, VA focuses on residual income—the money left each month after taxes, housing costs, debts, and estimated utilities/maintenance. Minimums vary by region, family size, and loan amount, typically $450-$1,000+/month.
Yes! VA allows purchase of 1-4 unit properties as long as you occupy one unit as your primary residence. Rental income from other units can help you qualify. This is an excellent wealth-building strategy for veterans.
The Interest Rate Reduction Refinance Loan (IRRRL), or VA Streamline, lets you refinance an existing VA loan with minimal paperwork. Often no appraisal, income verification, or credit check required. You must show a 'net tangible benefit' like a lower rate or payment.
Unremarried surviving spouses of veterans who died in service or from a service-connected disability are eligible for VA loans with full benefits, including 0% down and no funding fee. Spouses of veterans missing in action or POWs may also qualify.
VA appraisals include Minimum Property Requirements (MPRs) focusing on safety, sanitation, and structural integrity. Issues like peeling paint, broken windows, faulty HVAC, or roof problems must be addressed. Homes in good condition typically pass without issues.
Yes! Once you pay off your VA loan (whether through sale or refinance), your entitlement is typically restored, allowing you to use VA benefits again. This process, called entitlement restoration, lets you use VA loans throughout your lifetime.
Yes, but it may reduce benefits. With a veteran-only loan, you get 100% VA guaranty. Adding a non-veteran spouse means only the veteran's portion (50%) is VA-guaranteed, which may require a down payment for larger loans.
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Typical Documents
- Last 30 days of pay stubs or income docs
- Last 2 years W-2s or 1099s (as applicable)
- Most recent 2 months of bank statements
- Government-issued ID
- Certificate of Eligibility (COE)
- DD214 (if applicable)
Exact items vary by program and scenario.
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Information provided is for educational purposes only and is not a commitment to lend. All loans subject to underwriting approval. Rates and terms subject to change. Equal Housing Lender. Equal Housing Opportunity.