VA Loan Guides by State
VA Loans by State: 2026 Guide to Benefits, Eligibility, and What Changes Locally
VA.gov Home Loans
VA Lender’s Handbook (M26-7)
VA Funding Fee + Closing Costs
VA Loan Limits + Entitlement
A VA home loan is a mortgage made by a private lender and supported by a VA guaranty. That guaranty can open the door to more flexible terms for eligible Veterans, active-duty service members, and qualifying surviving spouses. What changes by state is usually the “local layer”—property taxes, insurance costs, county loan limits used for partial entitlement math, and any state-level Veteran programs or exemptions.
VA Home Loans
- How it works: Banks and mortgage companies originate VA loans. The VA backs a portion of the loan, which can reduce lender risk and improve borrower terms.
- $0 down can be possible: Many eligible borrowers can purchase with no down payment when the price is supported by the VA appraisal and the lender approves the file.
- Use it more than once: VA entitlement can often be reused after payoff/sale, and some borrowers may carry remaining entitlement for another purchase.
- 2026 “VA loan limit” (1-unit): For partial entitlement calculations, the baseline conforming limit is $832,750 in most U.S. counties (higher in designated high-cost areas).
State-by-state differences
- Some states add extra benefits: A few states offer separate Veteran home loan programs or down-payment resources beyond the federal VA benefit.
- Tax savings can vary: Many states (and counties) offer Veteran property tax exemptions or credits, but eligibility and application rules differ widely.
- Local housing costs matter: Property taxes, homeowners insurance (and flood/wind/wildfire coverage), and HOA dues can change your payment more than the interest rate in some markets.
Eligibility + COE
- COE required: Your Certificate of Eligibility confirms your VA home loan eligibility and entitlement status.
- Service-based qualification: Eligibility is tied to service history, duty status, and character of discharge, plus certain surviving spouse scenarios.
- Credit & income: The VA doesn’t set a minimum credit score, but lenders do. Expect underwriting to review stability of income, debts, and overall risk.
- Primary residence: VA purchase loans require intent to occupy. The property must meet VA Minimum Property Requirements (MPRs) as part of the appraisal process.
Key benefits, fees, and closing costs
- No monthly PMI: VA loans do not require monthly private mortgage insurance like many conventional low-down-payment loans.
- Competitive pricing: Many VA borrowers find rates and terms that compare favorably to other common loan options, depending on market conditions and the lender’s overlays.
- Closing costs are controlled: The VA limits certain lender fees, and seller credits can help offset costs (within VA rules).
- VA funding fee: Most borrowers pay a one-time funding fee that varies by loan type, down payment, and whether it’s first use or subsequent use. Some borrowers (including many with service-connected disability compensation and certain surviving spouses) are exempt.
FAQs
What credit score do I need for a VA loan?
Can I use my VA loan benefit more than once?
Is it really a $0 down payment program?
What Are the VA Loan Requirements?
To qualify for a VA loan, borrowers must meet both VA eligibility guidelines and lender-specific underwriting requirements. This means proving minimum credit strength, manageable debt-to-income ratios, and obtaining a Certificate of Eligibility. Additionally, VA loans require owner occupancy, and most borrowers pay a one-time funding fee unless exempt.
- Credit Score: Most VA lenders prefer applicants with scores of 580 or higher, though some will consider lower scores if supported by strong compensating financial factors such as income stability or significant savings.
- Debt-to-Income Ratio: A DTI under 41% is typically preferred. However, Veterans with strong residual income or additional assets may qualify even when their ratio exceeds the standard guideline.
- Certificate of Eligibility (COE): Confirms service-based eligibility. Veterans can obtain their COE through the VA eBenefits portal or by having their lender request it during preapproval.
- Primary Residence Rule: Borrowers must occupy the home as their primary residence, generally within 60 days of closing, ensuring VA loans are used to promote stable, long-term housing for Veterans.
- VA Funding Fee: A one-time charge—often waived for disabled Veterans—that supports the program and reduces taxpayer burden. Details are outlined at va.gov.
Credit Score Requirements for VA Loans
The VA does not impose a universal minimum credit score requirement, but most lenders use 580 as a common benchmark. Stronger overall financial health, such as low debt or substantial savings, can help offset weaker credit scores and improve approval chances.
- Minimum Standards: While 580 is the general baseline, some lenders may consider scores below this threshold if the borrower demonstrates exceptional residual income or other positive financial strengths.
- Compensating Factors: Stable employment, consistent income, and strong savings accounts often persuade lenders to approve applicants with less-than-ideal credit scores, reducing risk and supporting repayment confidence.
- Healthy Credit Habits: A record of on-time payments, low credit utilization, and responsible debt management improves the likelihood of VA loan approval and ensures better long-term mortgage terms.
VA Loan Income and DTI Guidelines
Lenders review your debt-to-income (DTI) ratio to confirm affordability. Although 41% is the recommended limit, VA underwriting flexibility allows approvals above this level when residual income is strong and household finances are stable.
- Preferred Ratio: VA lenders typically prefer a DTI under 41%, but exceptions are granted when borrowers show significant monthly disposable income that ensures repayment capacity and financial stability.
- Helpful Tools: Veterans can use our VA DTI calculator to estimate their eligibility and see how income and debt interact with VA loan guidelines.
- Income Stability: Lenders prioritize consistent, documentable income such as wages, pensions, or disability benefits, ensuring long-term ability to meet monthly mortgage and housing-related obligations.
How to Get Your VA Certificate of Eligibility (COE)
The Certificate of Eligibility is required to verify that a Veteran or service member qualifies for VA loan benefits. This document confirms service history and remaining entitlement, and it can be requested online or through a VA-approved lender during preapproval.
- Service Verification: The COE verifies your military service record and confirms your entitlement to VA home loan benefits based on duty status and length of service.
- How to Access: Apply directly via the VA eBenefits portal or request your COE through a lender who can retrieve it instantly online.
- Required for Processing: No VA loan can proceed to underwriting without a valid COE, making it one of the first and most important steps in the application process.
VA Occupancy Requirements
VA loans are intended to promote stable homeownership for Veterans. As such, borrowers must occupy the purchased property as their primary residence. Occupancy must typically occur within 60 days of closing, though extensions are possible under certain conditions.
- Primary Home Rule: The property must serve as your main residence, excluding use as a vacation property, rental, or investment asset.
- Occupancy Timeline: Veterans must move into the property within approximately 60 days of closing unless active-duty obligations delay relocation under approved exceptions.
- Official Guidance: Full occupancy requirements are detailed at va.gov, including allowable exceptions and military-specific considerations.
What Is the VA Funding Fee?
The VA funding fee is a one-time charge that helps sustain the program without taxpayer reliance. While required for most borrowers, Veterans receiving disability compensation, Purple Heart recipients, and certain surviving spouses qualify for exemptions.
- Requirement: The funding fee applies unless the borrower qualifies for an exemption based on disability status or surviving spouse eligibility under VA rules.
- Variable Rate: The fee ranges depending on loan type, usage history, and down payment amount, with purchase loans and cash-out refinances carrying higher percentages than IRRRLs.
- Financing Option: Borrowers can roll the funding fee into the loan balance, reducing upfront costs while preserving cash for moving expenses, repairs, or financial reserves.
Top Benefits of Using a VA Loan
VA loans deliver unique benefits not found with most mortgage products. By removing down payments, PMI, and imposing caps on closing costs, VA loans create lasting affordability for Veterans while keeping barriers to homeownership low. These features ensure greater financial stability and buying power for Military families.
- Zero Down Payment: Borrowers can finance 100% of the home’s purchase price, avoiding years of saving and allowing faster access to stable housing opportunities without draining personal reserves.
- No PMI: Unlike conventional mortgages, VA loans do not require private mortgage insurance, saving hundreds monthly and thousands in lifetime costs.
- Lower Interest Rates: VA loans typically feature below-average rates, reducing borrowing costs over the life of the mortgage and ensuring greater affordability for Veteran homeowners.
- Lenient Credit Standards: Flexible credit guidelines allow approval despite past credit issues, supporting Veterans rebuilding their financial profile.
- Limited Closing Costs: The VA caps fees and allows seller concessions up to 4%, minimizing upfront expenses and protecting Veterans from excessive lender charges.
Buy a Home with No Down Payment
One of the most significant VA loan benefits is the ability to buy with no down payment. This unique feature reduces upfront costs, shortens the savings timeline, and allows Veterans to secure housing sooner in competitive real estate markets.
- No Down Savings: Skip saving tens of thousands for a 5–20% down payment, a hurdle that prevents many buyers from entering homeownership quickly.
- Faster Access: Veterans can compete in hot housing markets without waiting years to save for a down payment, improving chances of securing desired homes earlier.
- First-Time Buyer Advantage: Particularly beneficial for first-time buyers or those with limited savings, VA loans provide affordable, immediate access to homeownership opportunities.
Skip Private Mortgage Insurance (PMI)
Unlike conventional loans, VA loans never require PMI, regardless of down payment size. Eliminating PMI saves borrowers hundreds monthly, lowering payments while making homeownership accessible and sustainable for Veterans and Military families.
- No Extra Insurance: Borrowers avoid PMI charges entirely, which typically add significant expense to conventional mortgages where buyers put less than 20% down.
- No Need to Refinance: With VA loans, borrowers never need to refinance just to remove PMI, unlike many FHA or conventional loan products.
- Lower Monthly Costs: Eliminating PMI reduces monthly obligations, improving affordability and freeing household income for other priorities like savings, retirement, or family expenses.
Access Lower Interest Rates
VA loans usually feature lower interest rates than FHA or conventional loans. This translates into reduced monthly payments and significant lifetime savings, strengthening financial security for Veterans and their families over decades of homeownership.
- Below Market Rates: VA loans consistently deliver rates below conventional averages, saving borrowers substantial amounts across the life of their mortgages.
- Lower Lifetime Borrowing Costs: Reduced interest ensures lower overall repayment amounts, helping Veterans build equity faster and preserve financial health long-term.
- Improved Approval Chances: By lowering monthly payments, VA loans increase affordability ratios, often improving a borrower’s chance of approval compared with conventional financing options.
More Flexible Credit Standards
VA lenders consider the entire financial picture when evaluating applications. Even Veterans with past credit challenges may qualify, provided they demonstrate stable income, manageable debt, and sufficient residual income to handle ongoing obligations.
- Collections Allowed: Past collections or delinquencies don’t automatically disqualify applicants if they show improved financial behavior and consistent repayment patterns moving forward.
- Approval Flexibility: Lenders may approve applicants with lower scores if their income, savings, or residual income offset potential risk factors.
- Veteran-Friendly Guidelines: VA underwriting emphasizes fairness and flexibility, opening doors to homeownership for borrowers excluded from many conventional programs.
Save on Closing Costs
The VA limits lender fees and allows seller contributions of up to 4% of the home’s value, reducing borrower out-of-pocket expenses and ensuring closing costs remain manageable and transparent for Military families.
- Capped Fees: The VA restricts how much lenders and third parties can charge, keeping costs transparent and affordable compared to other mortgage products.
- Seller Assistance: Veterans may receive up to 4% in seller concessions to offset closing costs, prepaid taxes, or other expenses at settlement.
- More Affordable Closings: These protections make VA loan closings far less expensive, reducing upfront cash requirements and easing financial stress for buyers.
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet the service and eligibility standards set by the Department of Veterans Affairs. These guidelines ensure that Veterans, active-duty service members, Guard and Reserve personnel, and surviving spouses can access the benefit if they meet required service time and duty conditions.
- Veterans: Eligible if they have completed the minimum active-duty service requirements and received a discharge that is other than dishonorable, confirming entitlement to full VA home loan benefits.
- Active-Duty Service Members: Current Military members serving on active duty may qualify immediately once service requirements are met, ensuring that benefits are available during their time of service.
- National Guard and Reserves: Must complete at least six years of service or serve a minimum of 90 days of active duty during wartime, with additional eligibility through Title 32 activation periods.
- Surviving Spouses: Widows or widowers of service members who died in the line of duty or from service-connected causes may be eligible for VA loan benefits, ensuring continued housing support.
Minimum Service Time Requirements
The VA specifies minimum service thresholds that determine eligibility. These requirements vary depending on whether the applicant served during wartime or peacetime, in the Guard or Reserves, or under Title 32 orders.
- Wartime Service: At least 90 consecutive days of active duty during periods officially designated as wartime meets the eligibility threshold for VA loan benefits.
- Peacetime Service: Veterans who complete a minimum of 181 consecutive days of active duty during peacetime qualify for VA home loan eligibility under standard requirements.
- National Guard and Reserve: At least six years of service, or 90 days of active duty under Title 32 orders with at least 30 consecutive days, satisfies eligibility criteria for VA loan access.
VA Loan Eligibility Calculator
What Types of Homes Can You Buy With a VA Loan?
Your VA loan benefit isn’t just for a traditional house. You can use it to buy many different kinds of properties to fit your lifestyle, as long as it will be your primary residence.
🏡 Single-Family Home
The most common choice. A traditional, detached house that provides space and privacy for families.
🏢 Condominium
Using a VA loan to buy a condo is a great, often more affordable option. The key is that the entire condo complex must be on the VA-approved list.
🏘️ Multi-Unit Property
Use a VA loan to buy a property with up to four units (a duplex, triplex, or fourplex) as long as you live in one of the units yourself.
🏭 Modular Home
Using a VA loan to buy a modular home is generally easier to finance than manufactured homes.
🏗️ New Construction
Use your VA benefit to finance the construction of a brand-new home from the ground up, subject to lender approval.
🔧 Fixer-Upper (with a Renovation Loan)
A VA Renovation Loan allows you to buy a home and roll the costs of repairs or improvements into your mortgage.
What Are the Different Types of VA Loans?
The VA loan program is not a one-size-fits-all solution. It offers several distinct loan types designed for different goals, from buying your first home to refinancing or even making energy-efficient upgrades.
🛒 VA Purchase Loan
The standard loan for buying a primary residence. It’s famous for requiring no down payment for most Veterans.
⬇️ VA IRRRL (Streamline Refinance)
The Interest Rate Reduction Refinance Loan helps you easily refinance an existing VA loan to get a lower rate and payment.
💰 VA Cash-Out Refinance
This refinance option allows you to tap into your home’s equity, turning it into cash for expenses like debt consolidation or home improvements.
🔧 VA Renovation Loan
A VA Renovation Loan lets you buy a “fixer-upper” and roll the costs of repairs and upgrades directly into your mortgage.
🌲 Native American Direct Loan (NADL)
The VA NADL program for eligible Native American Veterans to buy, build, or improve a home on Federal Trust Land.
☀️ Energy Efficient Mortgage (EEM)
The Energy Efficient Mortgage Program allows you to finance the cost of energy-efficient upgrades—like solar panels or new windows—when you buy or refinance a home.
Pros and Cons of VA Loans
✅ The Advantages
- No Down Payment: The ability to finance 100% of the home’s value.
- No Monthly PMI: Saves hundreds of dollars every month compared to other loans.
- Competitive Interest Rates: Government backing results in lower rates.
- Flexible Credit Rules: More lenient credit requirements make it easier to qualify.
- Limited Closing Costs: The VA restricts what lenders can charge Veterans.
❌ The Limitations
- VA Funding Fee: A mandatory one-time closing cost for most borrowers.
- Primary Residence Only: Cannot be used for vacation homes or pure investment properties.
- Stricter Appraisal (MPRs): The property must meet safety and livability standards.
- No Initial Equity: With 0% down, you start with no equity in your home.
- Entitlement Can Be Tied Up: Your VA loan remains with the property if the loan is assumed.
Frequently Asked Questions about VA Loans
What is a VA loan and how does it work?
A VA loan is a mortgage backed by the Department of Veterans Affairs for eligible Veterans, active-duty service members, and certain surviving spouses. It often allows zero down financing and does not require monthly private mortgage insurance. Approval is still based on income, debts, residual income, and the full monthly payment.
Who is eligible for a VA loan?
Eligible borrowers can include Veterans, active-duty service members, some National Guard and Reserve members, and certain surviving spouses. Eligibility depends on service type and length, discharge status, and remaining entitlement. A lender can verify eligibility by pulling your Certificate of Eligibility, which shows entitlement and status.
Do I need a down payment for a VA loan?
Often no. Many eligible borrowers can finance 100% of the purchase price, which preserves cash for inspections, escrow setup, moving expenses, and reserves. Down payment requirements can appear in partial entitlement cases or when the purchase price and guaranty math create a gap, so confirm early with a lender.
Is there private mortgage insurance with a VA loan?
No. VA loans do not require monthly private mortgage insurance, which can materially lower the monthly payment compared with many low-down conventional loans. You may still have a one-time VA funding fee unless you are exempt. Removing PMI is one of the most powerful long-term savings features of the VA program.
What is the VA funding fee?
The VA funding fee is a one-time charge that supports the program and helps keep VA lending available. The amount depends on loan type, down payment, and whether you have used the benefit before. Many borrowers finance it into the loan. Veterans with qualifying service-connected disabilities are often exempt.
Can I use a VA loan more than once?
Yes. VA entitlement is a reusable benefit when you have remaining entitlement available or you restore entitlement after paying off or selling a prior VA-financed home. Some situations allow a one-time restoration even if you still own the property. Your COE and lender calculations determine whether zero down is possible on the next purchase.
Are there credit score requirements for a VA loan?
The VA does not set a minimum credit score, but lenders do, and many prefer around 620 for smoother approvals and pricing. Some lenders can approve lower scores with strong income and clean recent payment history, but conditions and rates can vary. The fastest way to know is a full preapproval review.
Can I buy an investment property with a VA loan?
No. VA loans are intended for primary residences, meaning you must plan to live in the home. However, you can purchase a one to four unit property, such as a duplex or fourplex, as long as you occupy one unit as your primary residence. Lenders will still review property condition and payment affordability.
How much can I borrow with a VA loan?
With full entitlement, most borrowers are not capped by county loan limits and can borrow as much as the lender approves based on income, debts, residual income, and total monthly payment. With partial entitlement, county limits and guaranty math can create down payment requirements at higher prices. See VA loan limits by county for details.
Do VA loans take longer to close?
Not usually. Many VA purchases close in about 30 to 45 days, similar to conventional loans. Timeline risk is usually driven by appraisal scheduling, repairs, condo document review, and how quickly documents are provided. Working with a VA-experienced lender and submitting paperwork early typically reduces delays.
