VA Loans: A Comprehensive Guide for Every State

VA loans are a powerful homebuying tool available to veterans, active-duty service members, and certain surviving spouses.

These loans, backed by the U.S. Department of Veterans Affairs (VA), offer substantial benefits that can make the dream of homeownership a reality for those who have served our country.

These guides cover everything you need to know about VA loans, including eligibility, requirements, benefits, and specific state-by-state information for veterans seeking home loans.

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What are VA Loans?

VA loans are government-backed mortgage loans designed to help veterans, service members, and their families purchase a primary residence. The VA guarantees a portion of the loan, reducing the risk for lenders and allowing eligible borrowers to access better loan terms than conventional mortgage products.

Key Features of VA Loans:

• No down payment required (for most borrowers)
• No private mortgage insurance (PMI)
• Competitive interest rates
• Flexible credit requirements
• Limits on closing costs

VA Loan Guides by State

• Montana
• New Jersey
• New York
• North Carolina
• Ohio
• Oklahoma
• Oregon
• South Carolina
• Tennessee
• Texas
• Utah
• Washington

VA Loan Requirements

While the U.S. Department of Veterans Affairs (VA) guarantees the loan, private lenders are the ones who set the specific underwriting criteria. Below are the key requirements you need to meet in order to qualify for a VA loan:

Credit Score

Although the VA does not set a minimum credit score, our VA lenders require a score of at least 580. Some may go lower if other factors like income and savings are strong. The score helps lenders evaluate how responsibly you manage debt and how likely you are to repay the loan.

• Some lenders require a credit score of 580 or higher.
• Lower scores may be accepted with stronger financial compensating factors.
• Timely payments and low credit utilization help improve eligibility.

Income and Debt-to-Income Ratio (DTI)

Lenders review your income and compare it to your monthly debt obligations to determine your debt-to-income ratio, use our VA DTI calculator. A lower ratio suggests you can comfortably afford a mortgage. While the preferred limit is 41%, VA loans allow flexibility depending on other financial strengths such as residual income and overall loan profile.

• Preferred debt-to-income ratio is under 41%.
• Residual income and savings can support higher DTI approvals.
• Income must be consistent, reliable, and verifiable.

Certificate of Eligibility (COE)

The COE is a document from the VA that proves your eligibility to use the VA loan benefit. It verifies your service history or entitlement. You can apply for it online through the VA eBenefits portal or ask your lender to help retrieve it during the preapproval process.

• Confirms service eligibility for the VA loan benefit.
• Can be obtained via the VA’s eBenefits portal or lender request.
• Required before final loan approval can proceed.

Primary Residence Requirement

VA loans are designed strictly for homes that will serve as your primary residence. You must intend to occupy the property within a reasonable time after closing—typically 60 days. The program does not allow use of funds for vacation homes, rental properties, or investment purchases.

• Must live in the home as your main residence.
• Occupancy generally required within 60 days of closing.
• VA loans cannot be used for second homes or investment properties.

VA Funding Fee

The VA funding fee is a one-time cost that helps support the VA loan program. This fee can be financed into your mortgage and varies based on your loan type and usage history. Veterans receiving disability compensation are typically exempt from paying the fee altogether.

• Helps reduce the cost of the VA program to taxpayers.
• Fee amount varies by down payment and prior usage.
• Disabled Veterans are usually exempt from paying it.

Benefits of VA Loans

VA loans provide a variety of powerful benefits that help Veterans and active-duty service members achieve homeownership with fewer financial obstacles. Here are the most impactful advantages:

No Down Payment Required

One of the most attractive features of VA loans is the ability to buy a home with no down payment. Most other loan programs require 3% to 20% down, but VA loans let you finance 100% of the home’s value—putting homeownership within reach much faster.

• Eliminates the need to save tens of thousands for a down payment.
• Makes homeownership accessible to more Veterans and military families.
• Helps buyers act quickly in competitive markets.

No Private Mortgage Insurance (PMI)

Unlike conventional loans with less than 20% down, VA loans don’t require private mortgage insurance. This means lower monthly payments and significant long-term savings. Over time, skipping PMI can add up to thousands of dollars back in your pocket.

• PMI savings reduce monthly mortgage costs significantly.
• No need to refinance later just to remove PMI.
• Helps keep VA loans more affordable over the long term.

Lower Interest Rates

VA loans typically offer interest rates that are lower than those for conventional or FHA loans. These lower rates are made possible because the VA guarantees a portion of the loan, reducing the lender’s risk and passing savings on to the borrower.

• Lower rates reduce lifetime interest payments.
• Lower monthly payments improve affordability and approval odds.
• Locking in a low rate helps protect against market volatility.

Flexible Credit Guidelines

VA lenders are more lenient when evaluating credit history compared to conventional loan providers. They consider your full financial picture, allowing Veterans with past credit challenges to still qualify for home financing under more favorable terms.

• Late payments or past collections may not automatically disqualify you.
• Lenders often accept lower credit scores if other strengths exist.
• Perfect credit is not a requirement for VA loan approval.

Limited Closing Costs

The VA restricts the types and amounts of closing costs that can be charged to Veterans. Additionally, sellers are allowed to contribute up to 4% toward closing expenses. These cost protections help reduce the amount of cash needed to finalize your home purchase.