Last updated: September 2026. This guide covers VA home loans in the United States. It is educational content, not financial advice.
VA loans are one of the most valuable benefits available to people who have served in the US military. They let eligible borrowers buy a home with no down payment, no monthly mortgage insurance and often a lower interest rate than other loan types.
To use this benefit, you need to meet two sets of requirements: service rules set by the Department of Veterans Affairs (VA), and financial rules set by the VA and the lender. In this guide we explain both, including 2026 funding fees, entitlement, credit and income guidelines, so you can see whether you qualify and what to expect.
What Is a VA Loan?
A VA loan is a mortgage from a private lender, such as a bank or mortgage company, that is partly guaranteed by the US Department of Veterans Affairs. The VA guarantee protects the lender if the borrower defaults, which allows lenders to offer better terms.
VA loans can be used to:
- Buy a home, condo or new construction.
- Build a home.
- Refinance an existing loan, including a VA streamline refinance (IRRRL) or a cash out refinance.
- In some cases, make energy efficient improvements.
Key Benefits of VA Loans
- No down payment for most eligible borrowers with full entitlement.
- No monthly mortgage insurance, unlike FHA loans and most conventional loans with less than 20% down.
- Competitive interest rates, often among the lowest available.
- Limits on certain closing costs, which protect borrowers from excessive fees.
- No prepayment penalties, so you can pay off the loan early.
- Reusable benefit, which can be used more than once.
VA Loan Requirements at a Glance
| Requirement | Guideline |
|---|---|
| Service eligibility | Meet VA service requirements and have a Certificate of Eligibility (COE) |
| Discharge | Other than dishonorable (honorable or general under honorable conditions usually qualifies) |
| Down payment | None required with full entitlement |
| Credit score | No VA minimum; many lenders look for around 620 |
| Debt to income ratio | VA benchmark of 41%, with flexibility for strong residual income |
| Residual income | Must meet VA guidelines based on family size and region |
| Funding fee | 0.5% to 3.3% depending on loan type, use and down payment (some borrowers exempt) |
| Property use | Must be your primary residence |
| Property standards | Must pass a VA appraisal and meet minimum property requirements |
1. Service Requirements
You may be eligible for a VA loan if you meet one of these service requirements.
Active duty service members
In general, you qualify after 90 continuous days of active service.
Veterans who served on or after August 2, 1990
You generally need 24 continuous months of active duty, or the full period (at least 90 days) for which you were called or ordered to active duty. Shorter service may qualify in some cases, such as discharge for a service connected disability, hardship or a reduction in force.
Veterans of earlier eras
Different minimums apply depending on when you served. For example, between September 8, 1980 and August 1, 1990, the rule is generally 24 months or the full period of at least 181 days. Earlier eras use 90 day wartime or 181 day peacetime minimums.
National Guard members
You may qualify with any of the following:
- At least 90 days of non training active duty service under Title 10.
- At least 90 days of qualifying Title 32 service, including at least 30 consecutive days, under specific sections of the law.
- Six creditable years in the National Guard.
Reserve members
You may qualify with at least 90 days of non training active duty service or six creditable years in the Selected Reserve.
Surviving spouses
Surviving spouses may be eligible, for example if their spouse died in service or from a service connected disability and they receive Dependency and Indemnity Compensation, or if their spouse is missing in action or a prisoner of war. Remarriage rules apply.
Discharge status
Your discharge must be other than dishonorable. An honorable discharge qualifies, and a general discharge under honorable conditions usually does too. If you have an other than honorable discharge, you can ask the VA for a character of discharge review.
2. Certificate of Eligibility (COE)
The Certificate of Eligibility proves to lenders that you meet the service requirements. You can get it in three main ways:
- Through your lender, who can often request it electronically in minutes.
- Online through the VA’s website.
- By mail, using VA Form 26-1880.
You will typically need proof of service, such as a DD Form 214 for veterans or a statement of service for current service members.
3. Credit Score Requirements
The VA does not set a minimum credit score. Instead, it asks lenders to review your overall credit history. In practice, many lenders look for a score of about 620, although some accept lower scores with other strengths.
Lenders will also consider past credit events. Typical waiting periods include about two years after a Chapter 7 bankruptcy or a foreclosure, and possible approval during a Chapter 13 bankruptcy after 12 months of on time payments with court approval. Rules vary by lender.
For tips on improving your score, see our guide on what credit score you need to buy a house.
4. Income, DTI and Residual Income
VA loans use two measures to check affordability.
Debt to income ratio
The VA uses 41% as a benchmark for your total debt to income ratio. Borrowers can be approved above that level if they have strong residual income or other compensating factors.
Residual income
This is what makes VA underwriting unique. Residual income is the money left each month after paying your mortgage, taxes, insurance, debts and estimated living costs. The VA sets minimum amounts based on:
- Your family size.
- Your region of the country.
- Your loan amount.
This approach focuses on whether you will have enough money left for daily life, not just on ratios, which is one reason VA loans have historically had strong performance.
Employment
Lenders generally look for stable income, often a two year history. Military pay, VA disability compensation, retirement income and civilian wages can all count if properly documented.
5. The VA Funding Fee
Most borrowers pay a one time VA funding fee, which helps keep the program running. It can be paid at closing or added to the loan.
2026 VA funding fee for purchase loans
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Refinance loans
| Loan type | Funding fee |
|---|---|
| VA IRRRL (streamline refinance) | 0.5% |
| Cash out refinance, first use | 2.15% |
| Cash out refinance, subsequent use | 3.3% |
Who is exempt?
You do not have to pay the funding fee if you:
- Receive VA compensation for a service connected disability.
- Are eligible for disability compensation but receive retirement or active duty pay instead.
- Are a Purple Heart recipient on active duty.
- Are an eligible surviving spouse receiving Dependency and Indemnity Compensation.
Example
On a $350,000 home with no down payment and first time use, the funding fee is 2.15%, or $7,525. Most borrowers add this to the loan, making the total loan about $357,525.
6. Entitlement and Loan Limits
Entitlement is the amount the VA guarantees on your behalf. It determines how much you can borrow without a down payment.
- Full entitlement: Since 2020, borrowers with full entitlement have no VA loan limit. You can borrow as much as a lender will approve based on your income and credit, with no down payment.
- Partial entitlement: If you already have an active VA loan or have not restored entitlement from a previous one, VA loan limits apply. These follow the county conforming loan limits, which are $832,750 for a one unit home in most areas in 2026 and higher in expensive counties. Above that level, you may need a down payment.
You can usually restore your entitlement after selling a home and paying off the VA loan, which lets you use the full benefit again.
7. Property and Occupancy Requirements
- Primary residence. You must intend to live in the home as your main residence, generally moving in within 60 days of closing. VA loans cannot be used for pure investment properties.
- Multi unit homes. You can buy a property with up to four units if you live in one of them.
- VA appraisal. A VA assigned appraiser values the home and checks that it meets the VA’s minimum property requirements for safety, soundness and sanitation.
- Repairs. Problems such as roof damage, unsafe electrical systems or lack of heating may need to be fixed before closing.
8. Closing Cost Protections
VA rules limit what borrowers can be charged:
- Lenders can charge an origination fee of up to 1% of the loan amount, or itemize certain fees instead.
- Some fees cannot be charged to the veteran.
- Sellers can pay all of your normal closing costs, plus concessions of up to 4% of the loan amount for items such as prepaid taxes or the funding fee.
VA Loans vs FHA and Conventional Loans
| Feature | VA loan | FHA loan | Conventional loan |
|---|---|---|---|
| Down payment | 0% | 3.5% | 3% to 20% |
| Mortgage insurance | None | Upfront and annual MIP | PMI if under 20% down |
| Upfront fee | Funding fee (exemptions available) | 1.75% UFMIP | None required |
| Credit score | No VA minimum, often 620 | 580 (500 with 10% down) | Around 620 |
| Who can use it | Eligible service members, veterans, some spouses | Anyone who qualifies | Anyone who qualifies |
For most eligible borrowers, a VA loan offers the lowest upfront cost. Compare it with our FHA loan requirements guide if you are weighing options.
Common Myths About VA Loans
“VA loans take much longer to close.” In reality, VA loans typically close in a similar time frame to other loan types when you work with an experienced lender.
“Sellers don’t accept VA offers.” Some sellers once worried about stricter appraisals, but a well prepared VA offer from a pre-approved buyer can be just as strong as any other.
“You can only use the benefit once.” The benefit is reusable, and entitlement can be restored after you sell and repay the loan.
“You need perfect credit.” The VA does not set a minimum score, and lenders often accept scores that would be too low for the best conventional pricing.
“VA loans are only for first time buyers.” Eligibility depends on service, not on whether you have owned a home before.
How to Apply for a VA Loan
- Get your Certificate of Eligibility, or ask your lender to request it.
- Check your credit and review your budget.
- Compare VA approved lenders. Rates and fees vary, so get several Loan Estimates. Our list of the best mortgage lenders in the US includes VA specialists.
- Get pre-approved to understand your budget.
- Find a home and make an offer that includes a VA financing contingency.
- Complete the VA appraisal and underwriting, then close.
Frequently Asked Questions
Can I use a VA loan more than once?
Yes. The VA loan benefit can be used multiple times. You can restore full entitlement after selling a home and paying off the loan, and in some cases you can have more than one VA loan at the same time using remaining entitlement.
Do VA loans require mortgage insurance?
No. VA loans do not have monthly mortgage insurance. Most borrowers pay a one time funding fee instead, unless they are exempt.
Can a surviving spouse get a VA loan?
Yes, eligible surviving spouses can qualify, for example if their spouse died in service or from a service connected disability. They also need a Certificate of Eligibility.
Is there a maximum VA loan amount?
With full entitlement, there is no VA loan limit, although lenders still set limits based on your income, credit and the property. With partial entitlement, county loan limits apply.
Can I buy a second home with a VA loan?
VA loans are for primary residences. You cannot use one to buy a vacation home or an investment property, although you can buy a multi unit home if you live in one of the units.
The Bottom Line
VA loans offer eligible service members, veterans and some surviving spouses a rare combination of benefits: no down payment, no monthly mortgage insurance and competitive rates. To qualify, you need to meet the VA’s service requirements, obtain a Certificate of Eligibility and satisfy lender guidelines on credit, income and residual income.
If you think you may be eligible, request your COE, compare several VA approved lenders and check whether you are exempt from the funding fee. A lender experienced with VA loans can help you make the most of the benefit you have earned.
Disclaimer: This article is for general educational purposes only and does not constitute financial or legal advice. VA eligibility rules, funding fees and loan limits are set by the Department of Veterans Affairs and may change. Lenders may apply additional requirements. Always confirm your eligibility and current rules with the VA or a VA approved lender.