What it is
The VA Home Loan is a guarantee program rather than a lending program. The VA does not lend the money. It guarantees part of the loan, which is what allows a lender to offer no down payment and no monthly mortgage insurance.
The headline terms are zero down on most purchases, no monthly mortgage insurance at any loan-to-value, and entitlement that can be used again later. In place of monthly insurance the VA charges a one-time funding fee, which most borrowers finance into the loan. It is waived entirely for borrowers who receive compensation for a service-connected disability, certain Purple Heart recipients, and some surviving spouses.
VA files have their own vocabulary: PCS orders, BAH, entitlement restoration, minimum property requirements, and disability income that is not taxed. Knowing how each of those is documented is most of the work on a VA file.
Who it fits
- Active-duty service members (90+ continuous days)
- Veterans who met the required service period
- National Guard and Reservists (6+ years)
- Surviving spouses of service members, where eligibility applies
How it runs
- 1Get Your COEWe help request your Certificate of Eligibility from the VA and confirm your available entitlement.
- 2Pre-ApprovalA written pre-approval based on verified income, assets, and credit.
- 3VA AppraisalA VA-assigned appraiser sets value and confirms the property meets the VA minimum property requirements.
- 4CloseSign the closing documents. VA purchases run on a timeline similar to other purchase loans.
Questions
What is the VA funding fee?
A one-time fee that can be financed into the loan. On a purchase with first use of entitlement it is 2.15% with less than 5% down, 1.50% with 5% to 9.99% down, and 1.25% with 10% or more down. On subsequent use it is 3.30%, 1.50%, and 1.25% at those same tiers. A cash-out refinance is 2.15% on first use and 3.30% on subsequent use. An IRRRL is 0.50%. The fee is zero for borrowers receiving compensation for a service-connected disability, certain Purple Heart recipients, and some surviving spouses.
Is there a minimum credit score?
The VA does not set one. Individual lenders set their own thresholds, and many look for 620 or higher.
Can I have two VA loans at once?
In some circumstances, most often a permanent change of station. Your remaining entitlement determines how much of a second loan the VA will guarantee.
Is there a maximum loan amount?
There is no VA cap on the loan amount for a borrower with full entitlement, though the lender still has to approve the loan. County limits matter when entitlement is partial.
Other programmes
Fixed Rate Mortgage
A predictable rate and payment for the life of the loan.
FHA Home Loan
Government-insured loans with 3.5% down and flexible credit guidelines.
Rehab Loan
Finance the purchase and renovation of a home in a single mortgage.
USDA Loan
0% down loans for eligible rural and suburban homes.
Jumbo Home Loan
Financing for homes priced above the conforming loan limit.
First Time Home Buyer
Programs and guidance built for buyers purchasing their first home.