VA Home Loans in 2025: A Veteran’s Guide

Since 1944, the VA loan program has helped over 25 million Veterans and military families become homeowners—often without needing a down payment. For active-duty service members, Veterans, and eligible surviving spouses, this benefit is more than just a loan—it’s a powerful path to homeownership and long-term financial stability.

Even today, VA loans remain one of the most accessible and affordable ways to buy or refinance a home, thanks to low rates, flexible credit requirements, and no mortgage insurance.

But what exactly is a VA loan? At its core, it’s a mortgage backed by the U.S. Department of Veterans Affairs, created to give those who’ve served our country an easier, more affordable way to own or improve a home.

In this guide, we’ll walk you through everything you need to know—eligibility, benefits, how to apply, and answers to the most common questions—so you can feel confident as you explore your home financing options.

Download our Complete VA Loan Guide PDF here

In this Article

What is a VA Loan?

A VA loan is a government-backed mortgage program offered to Veterans, active-duty military service members, and eligible surviving spouses. These loans are backed by the U.S. Department of Veterans Affairs (VA) and are designed to make homeownership more accessible and affordable for those who have served our country.

Unlike traditional mortgages, VA loans are not issued directly by the federal government. Instead, the VA provides a guarantee to approved lenders, which reduces their risk and allows them to offer more favorable terms to qualified borrowers.

Key features of VA loans include:

$0 Down Payment: Most VA borrowers can purchase a home without needing to put any money down.
No PMI: VA loans don’t require private mortgage insurance (PMI), which saves hundreds per month compared to FHA or conventional loans.
Competitive Interest Rates: Lenders often offer lower VA mortgage rates than conventional loan options.
Flexible Credit Guidelines: VA loans are available to borrowers with lower credit scores and offer manual underwriting when needed.
Limited Closing Costs: The VA limits what borrowers can be charged, and sellers can pay closing costs.
Lifetime Benefit: Eligible Veterans can use their VA home loan benefit more than once with no cap on usage.

Because the VA guarantees a portion of the loan—typically up to 25%—lenders are able to offer more flexible qualification terms. If the borrower defaults, the VA absorbs part of the lender’s loss, which lowers the financial risk for banks and credit unions.

To learn more about today’s VA loan rates, qualification requirements, or how to get preapproved, explore the rest of this guide or speak with one of our VA loan experts.

Real-Life Veteran Story

“After serving in the Marine Corps for four years, I struggled to save for a down payment. With a VA loan, I bought my first home without putting down a cent. It felt like my service was truly recognized and rewarded.”
– John R., Marine Veteran, Ohio

2025 VA Loan Requirements

VA loan requirements in 2025 are built to help Veterans, active-duty service members, and surviving spouses access safe, affordable housing with peace of mind. To qualify, borrowers must meet flexible but important standards around credit, income, property condition, and VA appraisal guidelines—ensuring the loan is a good fit for both the homeowner and the lender.

Property Requirements

The home must be your primary residence. VA loans are not available for investment properties or vacation homes. The property must be occupied by the Veteran or eligible borrower shortly after closing.
The home should be a standard single-family property—including condos and townhomes approved by the VA. Multi-unit homes (up to 4 units) may also qualify if the borrower intends to live in one of the units.
Unique or unconventional properties—like tiny homes, barndominiums, or dome houses—may not meet VA appraisal standards. The VA appraisal process ensures the home is structurally sound, sanitary, and safe for occupancy.
All homes must meet the VA’s Minimum Property Requirements (MPRs), which cover essential livability standards such as working utilities, adequate roofing, safe electrical systems, and access to clean water.

Credit and Income

To qualify for a VA loan, you must meet the lender’s credit and income standards. Lenders in our network may be able to approve VA loans to borrowers with a 580 credit score.
The VA generally prefers a debt-to-income (DTI) ratio of 41% or less.
Exceptions may apply if your residual income exceeds VA requirements by 20% or if you have tax-free income.

Inspection and Appraisal

A home inspection is strongly recommended before closing. While not required by the VA, an inspection helps uncover major issues such as foundation cracks, roof damage, plumbing problems, or mold that could lead to expensive repairs.
A VA-approved appraiser will assess the home’s value and condition. The appraiser ensures the property meets the VA’s Minimum Property Requirements (MPRs), which include structural safety, livability, sanitation, and access standards.
The VA appraisal is not the same as a home inspection. It focuses on determining the home’s fair market value and verifying that it’s a safe investment for both the Veteran and the VA loan program.
If the property does not meet MPRs, the seller may be required to make repairs before the loan can close. In some cases, buyers may request repair concessions as part of their offer.

Service Requirements

To qualify for a VA loan, you must meet specific service requirements. These vary depending on your status:

Veterans:

At least 90 consecutive days of active service during wartime.
At least 181 days of active service during peacetime.
Honorable discharge or discharge under honorable conditions is required.

Active-Duty Service Members:

Currently serving with 90 days of continuous active duty.

National Guard and Reserves:

At least six years of service or 90 days of active service under Title 10 or Title 32 orders.

Surviving Spouses:

Unmarried spouses of service members who died in the line of duty or from a service-related disability.
Some remarried spouses are eligible if the remarriage occurred after the age of 57.

VA Loan Benefits

VA loans offer unique advantages that make them one of the best home financing options for Veterans, active-duty military, and eligible surviving spouses. Backed by the Department of Veterans Affairs, these benefits include:

No Down Payment

The ability to buy a home with no down payment is the hallmark benefit of VA loans. Since its inception, this program has enabled qualified Veterans and service members to purchase homes without the burden of saving for a hefty down payment.

Unlike most conventional loans that require a down payment—often starting at 3% or more—VA loans eliminate this financial barrier. Saving for a down payment can take years for many military families, making this benefit a game-changer. For those who have the cash, opting for a VA loan allows them to allocate that money toward other investments or savings goals.

Lower Interest Rates

VA loans consistently offer some of the lowest average interest rates in the mortgage market, according to Optimal Blue data. For the past two years, VA loans have maintained this position, making them an attractive choice for Veterans.

A lower interest rate helps buyers save significantly over time, both in monthly payments and overall loan costs. It also increases purchasing power, allowing Veterans to qualify for larger loans with the same monthly budget.

Flexible Credit Guidelines

VA loans are designed to make homeownership accessible, especially for Veterans with less-than-perfect credit. They feature more forgiving credit standards compared to other loan programs.

While credit score requirements vary by lender, VA loans often accept scores lower than those required for conventional loans. At Veterans United, for instance, borrowers typically need a FICO score of 620. Additionally, VA loans offer flexibility with debt-to-income (DTI) ratios and shorter waiting periods after financial hardships like bankruptcy or foreclosure.

Closing Cost Limits

VA loans come with protections to limit the financial burden of closing costs. Lenders are restricted on how much they can charge Veterans for loan origination and processing.

Sellers in a VA loan transaction can cover all the buyer’s loan-related closing costs and provide up to 4% of the loan amount in concessions. Furthermore, certain fees and costs are prohibited from being charged to VA borrowers, further reducing out-of-pocket expenses.

No Private Mortgage Insurance

Conventional loans typically require private mortgage insurance (PMI) for borrowers who put down less than 20%, adding an ongoing monthly cost. FHA loans also come with upfront and monthly mortgage insurance premiums.

VA loans eliminate the need for PMI altogether, even with zero down payment. This not only saves Veterans money but also maximizes their purchasing power, enabling them to afford more home for their budget.

Lifetime Benefit

One of the most significant advantages of VA loans is that they are a lifetime benefit. Eligible Veterans, active-duty service members, and surviving spouses can use their VA loan benefits multiple times throughout their lives, provided they meet the eligibility criteria and have sufficient entitlement remaining.

Whether you’re buying your first home, upgrading to a larger property, or purchasing a vacation home, the VA loan program remains accessible. Even if you’ve defaulted on a previous VA loan, you may still regain eligibility after repaying the loan or restoring your entitlement. This flexibility ensures that your VA loan benefit can support your housing needs at every stage of life.

Today’s VA Loan Rates for

VA Loan Type	Interest Rate	APR	Points
30‑Year Fixed VA (Purchase)	6.40%	6.58%	–
15‑Year Fixed VA (Purchase)	5.97%	–	–
20‑Year Fixed VA (Purchase)	6.40%	–	–
30‑Year Fixed VA Jumbo (Purchase)	6.50%	6.58%	–
30‑Year VA Cash‑Out Refinance	6.50%	6.54%	–
30‑Year VA Cash‑Out Jumbo Refinance	6.13%	6.46%	–
30‑Year Streamline (IRRRL) Refinance	5.99%	6.32%	–
30‑Year Streamline (IRRRL) Jumbo Refinance	6.50%	6.69%	–

Disclaimer

Rates shown reflect current VA loan products available through VA Loan Network.

15-year VA Fixed-Rate Loan:
An interest rate of 5.25% (5.75% APR) is for the cost of 1.50 Point(s) ($4,125.00) paid at closing. On a $275,000 mortgage, you would make monthly payments of $2,196.10. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 100%, as VA loans allow eligible veterans to secure financing with no down payment.

With VA loans, private mortgage insurance (PMI) is not required, leading to significant savings. The loan consists of equal monthly principal and interest payments throughout the loan term.

20-year VA Fixed-Rate Loan:
An interest rate of 5.75% (6.25% APR) is for the cost of 1.75 Point(s) ($4,812.50) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,898.76. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater, and no down payment is required due to the 100% LTV that VA loans allow.

25-year VA Fixed-Rate Loan:
An interest rate of 6.00% (6.35% APR) is for the cost of 2.00 Point(s) ($5,500.00) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,769.29. Monthly payments do not include taxes and insurance premiums. The actual payment amount will be greater. This loan, with 100% financing and no PMI, follows standard VA loan guidelines.

30-year VA Fixed-Rate Loan:
An interest rate of 6.125% (6.50% APR) is for the cost of 1.75 Point(s) ($4,812.50) paid at closing. On a $275,000 mortgage, you would make monthly payments of $1,672.11. Monthly payments do not include taxes and insurance premiums. As with other VA loans, the LTV is 100%, and no PMI is required, which helps reduce long-term costs.

Assumptions:

Mortgage rates are subject to change daily.
Actual payments will vary based on your individual financial situation and prevailing rates.
Certain loan products may not be available in every state.
Lending services may not be available in all locations.
Assumes the property is a primary residence, a single-family home, with a debt-to-income ratio under 30% and a credit score of 720 or higher.
The lock period for these rates is 45 days.
VA loans do not require private mortgage insurance (PMI).

Please keep in mind that we don’t have all of your financial details. Therefore, the rates and payment amounts displayed may differ from your actual situation. To receive more precise information tailored to your needs, reach out to a VA Loan Network mortgage expert today.

Who Qualifies for a VA Home Loan?

To be eligible for a VA home loan, applicants must meet certain criteria established by the U.S. Department of Veterans Affairs. These qualifications are based on your service duration, duty status, and the character of your discharge.

Wartime Service: At least 90 consecutive days of active duty during a period of war.
Peacetime Service: A minimum of 181 continuous days of active duty during peacetime.
National Guard/Reserves: Six years of honorable service, or 90 active days under Title 32 (with at least 30 served consecutively).

Veterans: Must have completed qualifying service and received an honorable or general discharge.
Active-Duty Military: Current service members may be eligible based on time in service.
Guard and Reserve Members: Eligibility applies with sufficient years of service or specific active-duty stints.
Eligible Surviving Spouses: Spouses of service members who passed away in service or from service-connected causes may also qualify.

View all 2025 VA Loan Requirements

VA Loan Eligibility Calculator

How VA Loans Compare

Each type of mortgage comes with its own unique benefits and limitations. However, for many Veterans and military families, VA loans often provide a clear advantage when compared to conventional loans and FHA loans, another popular government-backed option.

VA Loans	Conventional Loans	FHA Loans
No Down Payment	Up to 20% Down	Minimum 3.5% Down
Qualified borrowers can finance 100% of the home price, eliminating the need for any upfront down payment.	Most conventional loans require some form of a down payment, often between 5% and 20%.	FHA loans mandate a 3.5% down payment, making them a popular choice for first-time buyers.
No PMI	PMI Required	Upfront and Annual MIP
VA loans waive private mortgage insurance, even for zero-down buyers, saving hundreds each month.	Unless you put down at least 20%, most conventional loans require private mortgage insurance.	FHA borrowers pay an upfront mortgage insurance premium and recurring annual premiums.
Competitive Interest Rates	Best Rates for Top Credit	Mid-Level Interest Rates
VA loans typically have the most favorable rates, ensuring lower monthly payments for eligible borrowers.	Conventional loans offer low rates for applicants with excellent credit and substantial down payments.	FHA rates are lower than conventional rates but still higher than VA rates, on average.
Low Origination Fees	Moderate Origination Costs	Higher Origination Costs
VA loans have some of the lowest upfront fees, as recorded in recent federal mortgage data.	Conventional loans come with moderate fees, usually higher than VA loans but lower than FHA.	FHA loans tend to have the highest upfront fees among these options, adding to the initial costs of buying a home.
Simpler Qualification	Stricter Qualification Rules	Flexible but Limited
VA loans are designed to help service members and veterans qualify more easily with lenient credit and income requirements.	Conventional loans usually require higher credit scores, larger down payments, and strict income verification.	FHA loans aim to help moderate-income buyers but are limited in maximum loan amounts and property types.

More About VA Loans

Who are VA Loans For?

VA loans are ideal for veterans, active-duty service members, and eligible surviving spouses looking to buy a home with no down payment. This option is especially beneficial for those who may not have a high credit score or the savings for a large down payment. VA loans are also a great choice for refinancing existing mortgages.

Lenient Credit Requirements

VA loans are guaranteed by the Department of Veterans Affairs (VA), which protects lenders against potential loss if the borrower defaults. This guarantee makes it easier for veterans to qualify for loans with favorable terms, such as lower interest rates and no requirement for private mortgage insurance (PMI).

How to Qualify for a VA Loan?

Served at least 90 consecutive days during wartime or 181 days during peacetime.
VA Certificate of Eligibility
No down payment required.
Minimum 620 credit score
Debt-to-income of 45% or lower

How to Get a Certificate of Eligibility

Obtaining a Certificate of Eligibility (COE) is one of the first steps to qualifying for a VA loan. A COE proves that you meet the VA’s eligibility requirements.

Steps to Obtain a COE:

Online through eBenefits: The fastest way to apply is through the VA’s eBenefits portal.
Through a Lender: Many VA-approved lenders can assist you in obtaining your COE through the VA’s online system.
By Mail: You can submit VA Form 26-1880, the Request for Certificate of Eligibility, by mail. However, this method takes longer.

Documents Needed for a COE:

Veterans: DD Form 214, which details your military service and discharge status.
Active-duty service members: A statement of service signed by your commanding officer or personnel office.
National Guard/Reserve members: Point statements and proof of service if you’ve never been activated.
Surviving spouses: A copy of the Veteran’s death certificate and marriage license may be required.

What is the VA Funding Fee?

The VA funding fee is a one-time charge paid to the U.S. Department of Veterans Affairs (VA) at the closing of a VA-backed loan. This fee helps cover the cost of the VA’s loan guarantee, protecting the VA lender in case of default.

The fee is calculated as a percentage of the total loan amount, typically ranging from 0.5% to 3.3%, depending on factors such as:

Down payment: Amount of money put down on the property.
Loan purpose: Whether the loan is for buying, building, improving, repairing, or refinancing.
Usage frequency: Whether it’s the borrower’s first time or a repeat use of VA loan benefits.

VA funding fee Amounts:

First-time use for regular military: 2.15%
Subsequent use for regular military: 3.3%
First-time use for Reserves/National Guard: 2.4%
Subsequent use for Reserves/National Guard: 3.3%
Interest Rate Reduction Refinance Loan (IRRRL): 0.5%

VA Funding Fee Rate Chart

Loan Type	Down Payment	First-Time Use	Subsequent Use
Purchase and Construction Loans	None	2.15%	3.3%
	5% or more	1.5%	1.5%
	10% or more	1.25%	1.25%
National Guard and Reserves	None	2.4%	3.3%
	5% or more	1.75%	1.75%
	10% or more	1.5%	1.5%
Cash-Out Refinance	N/A	2.15%	3.3%
IRRRL (Interest Rate Reduction Refinance Loan)	N/A	0.5%	0.5%
Native American Direct Loan (NADL)	N/A	1.25%	1.25%
Loan Assumption	N/A	0.5%	0.5%

Veterans with service-connected disabilities are exempt from paying the funding fee.

What Types of Homes Can You Buy With a VA Loan?

A VA loan gives veterans and active-duty service members the chance to buy different kinds of properties that fit their lifestyle and needs.

Single-Family Homes: These traditional, detached houses are the most popular choice for those looking for space and privacy. They’re great for families and generally meet VA standards if maintained properly.
Condos: Often a practical option for first-time buyers, condos are usually more affordable than single-family homes. However, the entire condo project needs VA approval, so be sure to check with your lender.
Manufactured Homes: These homes, often called mobile homes, need to follow HUD construction rules to qualify. They’re a flexible option but come with a few extra requirements.
Modular Homes: Similar to manufactured homes but generally easier to finance with a VA loan. They’re built in sections in a factory but assembled on a permanent foundation, making them more comparable to traditional homes.
Multi-Family Properties: If you’re interested in rental income, you can buy a property with up to four units—just remember, you’ll need to live in one of them as your primary residence. This setup lets you live in one unit while potentially renting out the others.

How Do VA Loans Compare to Other Mortgages?

VA loans offer distinct advantages over other mortgage types, including conventional, FHA, and USDA loans. These benefits help eligible veterans, active-duty service members, and surviving spouses achieve homeownership, reflecting the program’s unique purpose.

Key Advantages of VA Loans

VA loans offer significant benefits, including no down payment, making homeownership more accessible. They typically feature competitive interest rates and notably, no private mortgage insurance (PMI), which saves borrowers money monthly. Additionally, VA loans have flexible credit requirements and limits on certain closing costs, further easing the path to homeownership for eligible service members and veterans.

No Down Payment: Unlike most mortgages requiring 3.5% to 20% down, VA loans allow 100% financing, significantly reducing upfront costs.
Competitive Interest Rates: VA loans often have lower interest rates than conventional loans, thanks to the VA’s government guarantee.
No Private Mortgage Insurance (PMI): A major cost-saving benefit of VA loans is the absence of monthly PMI, which is typically required on conventional loans with less than 20% down.
Flexible Credit Requirements: While lenders set their own standards, VA loans generally have more lenient credit requirements than many other mortgage options.
Limited Closing Costs: The VA restricts certain closing costs, and sellers can even pay some on behalf of the veteran.

Potential Limitations of VA Loans

While beneficial, VA loans do have some limitations. Most borrowers pay a one-time VA funding fee, though exemptions exist. The loans are generally for primary residences only, limiting use for investment properties. Properties must meet the VA’s Minimum Property Requirements (MPRs) through a specific appraisal process, which can sometimes require repairs and impact closing timelines.

VA Funding Fee: Most VA borrowers pay a one-time funding fee (1.25% to 3.3%), though veterans with service-connected disabilities or surviving spouses are typically exempt.
Primary Residence Only: VA loans are generally restricted to primary residences; you can’t use them for investment properties or vacation homes.
Initial Equity: With no down payment, buyers might start with less immediate home equity.
Stricter Appraisal Requirements: Properties must meet the VA’s Minimum Property Requirements (MPRs) for safety and soundness, which can sometimes impact closing timelines if repairs are needed.

What are the Types of VA Loans?

The Department of Veterans Affairs (VA) provides several loan options designed to meet various homeownership and financial needs of veterans and active-duty service members. These programs cover purchasing, refinancing, and even renovations.

1. VA Purchase Loan

Designed to help eligible borrowers buy a home with zero down payment and competitive interest rates.

Offers 100% financing.
Can be used for single-family homes, VA-approved condos, or multi-unit properties (if you occupy one unit).

2. Interest Rate Reduction Refinance Loan (IRRRL)

Also known as a VA Streamline Refinance, this loan helps veterans refinance an existing VA loan to secure a lower interest rate or switch to a fixed-rate mortgage with minimal documentation.

Streamlines refinancing with no appraisal or credit check needed in most cases.
Reduces monthly payments or offers rate stability.

3. Cash-Out Refinance Loan

A cash-out VA refinance loan allows veterans to refinance an existing VA or conventional mortgage and access cash based on their home equity for various expenses.

Allows access to home equity (often up to 100% of home value).
Can replace an existing VA or conventional mortgage.

4. Native American Direct Loan (NADL)

Native American Direct Loans are for eligible Native American veterans (or those married to one) to buy, build, or improve a home on federal trust land.

Features no down payment and competitive interest rates for trust land properties.
Covers purchases, renovations, or new construction in eligible areas.

5. Rehabilitation and Renovation Loan

VA Renovation loans provide financing to repair or enhance an existing home, allowing homeowners to improve property value and functionality.

Covers essential repairs and modernization projects.
Allows rolling renovation costs directly into the primary VA loan.

6. Energy Efficient Mortgage (EEM)

A VA Energy Efficient Mortgage (EEM) finances energy-efficient upgrades like solar panels or enhanced insulation, helping veterans reduce utility costs.

Covers energy-saving improvements like solar panels, HVAC upgrades, or insulation.
Can be combined with other VA loan types.

VA Appraisal and Minimum Property Requirements (MPRs)

Properties financed with a VA loan must meet the VA’s Minimum Property Requirements (MPRs), ensuring the home is safe, sanitary, and structurally sound. A VA appraiser assesses the property for MPR compliance and its market value.

Any needed repairs must be completed before closing. Appraisal costs typically range from $400 to $1,200 and are part of closing costs. For more detailed MPR information, refer to the official VA website on property requirements.

VA Loan Limits and Entitlement

VA loan limits generally align with federal conforming loan limits. For veterans with full VA entitlement, there may be no loan limit, allowing 100% financing regardless of loan amount. If entitlement has been used or in high-cost areas, specific county limits might apply.

The VA doesn’t set a minimum credit score, but lenders typically require 620-640. The longest permissible term is 30 years and 32 days.

Standard Limit (Conforming Counties): $806,500 (current year).
High-Cost Areas: Can be significantly higher, up to around $1,209,750 or more, adjusted annually.

VA Entitlement Explained: This is the portion of the loan the VA guarantees to the lender. Basic entitlement is typically $36,000, supporting loans up to $144,000. Bonus entitlement covers larger loans, often up to 25% of the county limit. You can restore your full entitlement after it has been used, often by selling your home or refinancing your VA loan.

How to Restore My VA Loan Entitlement?

Restoring your VA loan entitlement allows you to use your benefit again for a new home purchase. The VA provides several pathways:

Sell the Home and Pay Off the Loan: Fully restore entitlement by selling the property and paying off the VA loan.
Pay Off the Loan but Keep the Home: A one-time restoration option allows you to pay off the loan in full while retaining ownership of the home.
Transfer the Loan to Another Qualified Veteran: If another eligible veteran assumes your VA loan and substitutes their entitlement, yours is freed up.
Refinance the Existing Loan: Refinancing your VA loan into a conventional or other non-VA mortgage restores your entitlement.
Request a One-Time Entitlement Restoration: This special option lets you use entitlement for a new VA loan even if you keep your existing VA-financed home.

If your VA loan goes into foreclosure or short sale, you typically need to repay the VA’s loss to restore entitlement. For details, call a VA loan technician at 877-827-3702 or visit the VA’s official page on entitlement restoration.

VA Home Loan Payment Assistance Options

The U.S. Department of Veterans Affairs (VA) helps veterans facing financial difficulties with their VA home loan payments. If you’re struggling, act early and reach out for assistance.

Key Options:

VA Loan Technicians: Call 877-827-3702 for expert advice, to explore options, and to get help negotiating with your lender.
Repayment Plans: Catch up on missed payments by adding a portion to your regular monthly payment over a set period.
Special Forbearance: Temporarily pause or reduce mortgage payments during hardship, providing crucial relief.
Loan Modification: Permanently change original loan terms (e.g., extend term, reduce interest) to make payments more manageable.
Avoiding Foreclosure: The VA actively works to prevent foreclosure through tailored options and direct intervention with loan servicers.

For more information, visit the VA’s official site for homeowners experiencing payment difficulties.

How to Apply for a VA Loan (Step by Step)

Applying for a VA loan involves several key stages to ensure a smooth homebuying process:

Obtain Your Certificate of Eligibility (COE): This document proves your eligibility. Apply online via the VA’s eBenefits portal or have your lender pull it. Have your DD-214 (for veterans) or statement of service (for active duty) ready.
Get Pre-Approved: Fill out our form to speak to VA-approved lenders. Provide pay stubs, tax returns, and bank statements for income and credit verification to determine your borrowing capacity.
Find a VA-Approved Home: Work with a VA-experienced real estate agent. Ensure the property meets the VA’s Minimum Property Requirements (MPRs).
Undergo the VA Appraisal: A VA-certified appraiser evaluates the home’s market value and confirms it meets MPRs. Any needed repairs must be done before closing.
Complete the Loan Application: Submit your COE, purchase contract, and financial documents. Ensure accuracy to avoid processing delays in underwriting.
Close on Your New Home: Review and sign all final loan paperwork. Pay the VA funding fee (if applicable) or have it rolled into your loan. Then, you’ll receive your keys!

Potential Drawbacks of a VA Loan

While VA loans offer numerous advantages, borrowers should be aware of a few potential drawbacks:

VA Funding Fee: This one-time fee (1.25% to over 3%) supports the program. It can be financed, increasing your loan amount, though disabled veterans are typically exempt.
Primary Residence Only: You generally cannot use a VA loan for investment properties or vacation homes.
Stricter Appraisal Requirements: VA properties must meet MPRs, which can sometimes lead to required repairs and potential closing delays.

The Bottom Line

VA loans remain an unparalleled opportunity for veterans and active-duty service members. Whether buying your first home or refinancing, the benefits — zero down payment, no PMI, flexible credit, and robust assistance — are unmatched. You’ve earned these through your service, so explore and maximize them.

To start your homeownership journey, connect with a reputable VA-approved lender and secure your Certificate of Eligibility. The VA loan is a powerful tool for achieving your homeownership dreams.

Frequently Asked Questions

What is a VA loan? Copied!

A VA loan is a government-backed mortgage for eligible veterans, active-duty service members, and surviving spouses to buy, build, or refinance a home, guaranteed by the U.S. Department of Veterans Affairs.

Who is eligible for a VA loan? Copied!

Eligibility typically includes veterans meeting service requirements, active-duty service members, some National Guard and Reserve members, and certain surviving spouses. A Certificate of Eligibility (COE) confirms this.

What are the primary benefits of a VA loan? Copied!

Key benefits include no down payment, often lower interest rates, no private mortgage insurance (PMI), flexible credit requirements, and caps on certain closing costs.

How do I apply for a VA loan? Copied!

Apply by obtaining your Certificate of Eligibility (COE), gathering financial documents, and working with a VA-approved lender to complete the application process.

What is the VA funding fee? Copied!

The VA funding fee is a one-time cost paid by most VA loan borrowers to support the program, with the amount varying based on loan type, down payment, and prior use. Exemptions apply for disabled veterans.

Can I use a VA loan more than once? Copied!

Yes, you can use your VA loan benefit multiple times throughout your lifetime, provided you meet eligibility and your entitlement is restored (e.g., by selling your previous VA-financed home).

What is the difference between a VA loan and a conventional loan? Copied!

VA loans generally don’t require a down payment or PMI, unlike conventional loans which often mandate both, especially if your down payment is less than 20%.

How long does it typically take to close a VA loan? Copied!

Closing a VA loan typically takes 30 to 45 days, similar to conventional loans, depending on your lender and how quickly documentation is provided.

Can a VA loan be used to refinance an existing mortgage? Copied!

Yes, VA loans can be used to refinance via the Interest Rate Reduction Refinance Loan (IRRRL) for existing VA loans, or a Cash-Out Refinance for VA or conventional mortgages.

What are the VA’s Minimum Property Requirements (MPRs)? Copied!

MPRs are VA standards ensuring a property is safe, sanitary, and structurally sound, with functional utilities. The VA appraiser verifies compliance before loan approval.

What if I’ve had a bankruptcy or foreclosure in the past? Can I still get a VA loan? Copied!

Yes, a past bankruptcy or foreclosure doesn’t automatically disqualify you. You may qualify after a specific waiting period (typically two years) if you demonstrate financial stability.

Does a VA loan require an appraisal? Copied!

Yes, nearly all VA loans require an appraisal by a VA-certified appraiser to determine market value and ensure the home meets the VA’s MPRs.

Can I use a VA loan to build a new home? Copied!

Yes, VA loans can finance new home construction, typically converting from a construction loan to a permanent VA mortgage upon completion.

Are there specific lenders for VA loans, or can any lender offer them? Copied!

Only lenders approved by the Department of Veterans Affairs can originate VA loans. It’s often beneficial to work with lenders specializing in VA financing.