Buying a home with a VA loan can feel overwhelming—especially with so many rules, terms, and steps to understand.
Whether you’re a first-time homebuyer or a seasoned veteran looking to use your benefit again, this guide breaks down the most common VA loan questions in clear, simple language. We’ve covered everything from eligibility and credit to funding fees, appraisals, and refinancing—based directly on the most searched questions Veterans ask online.
Plus, we’ve included official answers straight from VA.gov to help you navigate with confidence. Our goal? Help you make smart, informed decisions about your VA loan benefit so you can move forward with clarity—not confusion. Let’s get started with the 35 most important questions Veterans like you ask every day.
In this Article
Eligibility & Entitlement
Who is eligible for a VA loan?
Veterans, active-duty service members, National Guard/Reservists, and qualifying surviving spouses may be eligible under specific service rules. Full eligibility is outlined by the U.S. Department of Veterans Affairs.
How many days of service are required to be eligible?
You typically need 90 days of wartime or 181 days of peacetime service. National Guard and Reservists need 6 years. Details are on the VA eligibility page.
What is a Certificate of Eligibility (COE)?
The COE confirms your VA loan entitlement. It’s required to apply and can be requested online through the VA’s official COE page.
Can I use my VA loan benefit more than once?
Yes—your VA loan benefit is reusable if you’ve paid off the previous loan or restored entitlement. See the reuse rules at VA.gov.
Can I have two VA loans at the same time?
You may have two VA loans if you have remaining entitlement and meet occupancy rules. Learn about second-tier entitlement on the VA’s COE breakdown.
Can I restore entitlement after selling my home?
Yes—your full VA entitlement can be restored after selling the property or refinancing. Review the process on the VA’s restoration guide.
Can a surviving spouse use a VA loan?
Yes—if the spouse is eligible due to the veteran’s death in service or from a service-connected disability. More info at the VA surviving spouse page.
Funding & Costs
Is a down payment required for a VA loan?
No—most VA loans don’t require a down payment when you have full entitlement. See options at the VA loan types page.
What is the VA funding fee?
The VA funding fee helps offset program costs and ranges from 0.5% to 3.6%. Get the official fee chart on VA.gov.
Can the funding fee be rolled into the loan?
Yes—you can finance the VA funding fee into the total loan amount, as long as the home’s appraised value supports it.
Do VA loans require mortgage insurance?
No—VA loans do not require monthly PMI, which reduces monthly costs compared to FHA or conventional loans.
What closing costs am I responsible for?
VA buyers can pay common costs like appraisals and title fees. Lenders can’t charge certain fees. See the breakdown at VA’s Buyer’s Guide (PDF).
Can the seller pay my closing costs?
Yes—sellers can pay up to 4% of the loan amount in concessions, including prepaid items and other closing costs.
Is there a prepayment penalty on VA loans?
No—VA loans do not have prepayment penalties. You can pay off or refinance at any time without additional charges.
Credit & Income Requirements
What credit score do I need for a VA loan?
The VA sets no minimum credit score, but most lenders require a 620 or higher to qualify for a VA mortgage.
What is residual income in VA loans?
Residual income is your leftover monthly income after expenses. It must meet minimum thresholds by family size and region. See tables in the VA Lender Handbook.
What’s the VA loan debt-to-income (DTI) limit?
The VA prefers a DTI ratio of 41% or lower, but higher ratios may be approved with strong compensating factors.
Can I qualify with recent late payments?
Possibly—lenders evaluate overall credit history, but multiple recent late payments may delay approval until issues are resolved.
Can self-employed veterans get a VA loan?
Yes—with at least two years of verifiable income through tax returns and business financials. The income must be stable and consistent.
Does child support count as income?
Yes—documented, consistent child support that’s expected to continue can count toward qualifying income.
Can changing jobs affect my VA loan approval?
Yes—job changes before closing may delay or impact your loan unless the new role is in the same field and compensation is stable.
Property & Appraisals
Do I need to live in the home I buy?
Yes—VA loans require the home to be your primary residence within 60 days of closing. Spouses may fulfill this in some cases.
What property types qualify for VA loans?
Eligible homes include single-family, condos (VA-approved), townhomes, 2–4 unit properties, and manufactured homes on permanent foundations.
Can I buy a fixer-upper with a VA loan?
Yes—but the home must meet the VA’s Minimum Property Requirements (MPRs). Major repairs must be completed prior to closing. View MPRs in the VA lender handbook Chapter 12.
How strict is the VA appraisal?
VA appraisals are designed to ensure the home is safe, sound, and sanitary—not cosmetic. Appraisers follow rules set by the VA Appraisal System.
Should I still get a home inspection?
Yes—appraisals are not inspections. You should hire an independent inspector to assess the property’s condition before committing to purchase.
Can I build a home with a VA loan?
Yes—VA construction loans exist, though fewer lenders offer them. Often, you’ll need a short-term loan and then refinance into a VA mortgage.
Can I borrow more than the appraised value?
No—VA lenders base maximum loan amounts on the lesser of purchase price or appraised value, though $6,000 for energy improvements may be added.
Refinancing & Special Use
What is a VA IRRRL refinance?
The VA Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance an existing VA loan to lower your interest rate with fewer documents. Learn more at VA.gov.
What is a VA cash-out refinance?
A VA cash-out refinance lets you tap equity or refinance a non-VA loan into a VA loan. Details and limits are on the VA cash-out page.
What is a VA loan assumption?
A VA loan assumption allows a qualified buyer to take over your VA loan and its terms. VA and lender approval are required.
Will a loan assumption affect my entitlement?
Yes—if the assuming borrower isn’t a veteran using their entitlement, your entitlement stays tied to the loan until it’s repaid in full.
What happens if I default on a VA loan?
Foreclosure affects your credit, but VA offers support. Contact a VA loan technician via the VA foreclosure prevention portal for help.
Who’s exempt from the VA funding fee?
Veterans receiving VA disability, Purple Heart recipients, and eligible surviving spouses are exempt from paying the VA funding fee.
Are there loan limits on VA loans?
No limits apply if you have full entitlement. With partial entitlement, county loan limits based on FHFA data apply. Check current limits on the FHFA website.
Want help using your benefit? Explore our VA loan eligibility guide, or see how to apply for a VA loan.
Levi Rodgers is a real estate expert and retired U.S. Army Green Beret. He writes about VA loans, homeownership, and helping Veterans buy homes. After service, he built a top real estate team and shares trusted advice for first-time and military buyers. Get to know Levi Rodgers
