VA home loans: who is eligible, what they cost, and how to buy with one
A VA home loan is a mortgage from a private lender that the U.S. Department of Veterans Affairs partly guarantees. Eligible veterans, service members, National Guard and Reserve members and some surviving spouses can use it to buy a home they will live in. There is no monthly mortgage insurance, and no down payment is required for eligible borrowers when the price is not above the appraised value, subject to VA eligibility and lender approval.
BEDRWay is a private company. We are not a lender and not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. We connect you with licensed loan officers. We set no rates and quote none, and nothing on this page is an offer of credit. Only a licensed loan officer can tell you what your own file allows.
Quick answers
- Down payment: none required when the price is not above the appraised value. In fiscal year 2025, 74% of VA purchase loans had no down payment (VA Annual Benefits Report).
- Funding fee: a one-time charge instead of monthly mortgage insurance, 2.15% of the loan on a first use with less than 5% down. Many borrowers are exempt.
- Credit: VA sets no minimum score. Lenders set their own, often around 620.
- Loan limit: none with full entitlement, since 1 January 2020. You still need to meet the lender’s standards.
- Reuse: the benefit can be used again, and in some cases you can hold two VA loans at once.
What is a VA home loan?
A VA loan is not a loan from the government. A bank, credit union or mortgage company makes the loan, and VA guarantees part of it, up to 25% of the loan on most home purchases. Because the lender is protected against part of the loss, it can lend with no down payment and no mortgage insurance.
VA also sets rules the lender must follow: who can borrow, which homes qualify, how debt is measured and which costs the buyer may be charged. The lender adds its own standards on top, and those vary. That is why two lenders can answer the same VA file differently.
Who is eligible for a VA home loan?
Eligibility for the benefit depends on your service. The lender then checks your credit and income for the loan itself. The main service requirements are below. VA’s eligibility page has the full list for every era.
| Who you are | Service usually needed |
|---|---|
| On active duty now | At least 90 continuous days of active service |
| Veteran who served since 2 August 1990 | 24 continuous months, or the full period you were called to active duty (at least 90 days) |
| Veteran of an earlier wartime period | At least 90 total days |
| Veteran of an earlier peacetime period | At least 181 days (for most service from 1980 to 1990, 24 continuous months) |
| National Guard or Reserve | 6 creditable years, or 90 days of non-training active duty under Title 10. Guard members can also count 90 days under certain Title 32 orders, including 30 days in a row |
| Discharged for a service-connected disability | Less than the minimum can be enough |
Summary of VA’s service requirements, read on VA.gov on 23 September 2026. The discharge must be other than dishonorable. If yours is not, you can ask VA for a character of discharge review or apply for a discharge upgrade.
Surviving spouses
A surviving spouse can use the benefit if they are eligible for, or receiving, Dependency and Indemnity Compensation (DIC) and meet one of VA’s conditions. The most common is being the unremarried spouse of a service member or veteran who died in service or from a service-connected disability. A spouse who remarried on or after 16 December 2003, and after turning 57, can also be eligible. So can the spouse of a service member missing in action or held as a prisoner of war for more than 90 days. VA’s surviving spouse page lists every case. The spouse of a living veteran has no eligibility of their own, but can be a co-borrower on the veteran’s loan.
The Certificate of Eligibility (COE)
The COE is the document that tells a lender you can use the benefit. There are three ways to get it:
- Through your lender. Most lenders can request it through VA’s online system, called Web LGY. This is how most buyers get it.
- Online at VA.gov.
- By mail, with VA Form 26-1880 sent to your regional loan center. VA notes that mail takes longer.
Veterans usually need a DD214. Active duty members need a statement of service signed by their commander, adjutant or personnel officer. Guard and Reserve members need documents that match their service history.
What are the key features of a VA loan?
- No down payment required for eligible borrowers, as long as the price is not higher than the appraised value. Subject to VA eligibility and lender approval.
- No monthly mortgage insurance. There is no PMI and no MIP. A one-time VA funding fee applies unless you are exempt.
- No VA loan limit with full entitlement. Since 1 January 2020, VA sets no cap if your entitlement is whole. You still need to qualify, and the home must appraise.
- Reusable for life. Entitlement comes back after an earlier VA loan is paid off and the home is sold. There is also a one-time restoration if you paid it off but kept the home.
- Two VA loans at once. With enough remaining entitlement you can keep one VA loan and buy again, as long as you will live in the new home.
- Closing costs stay separate. On a purchase, the funding fee is the only cost that can be added to the loan. Other closing costs are paid at closing, by you, the seller or a lender credit.
- Seller help. Sellers can pay your normal closing costs, plus up to 4% of the home’s reasonable value in concessions.
When a loan limit does apply
A limit only applies if part of your entitlement is still tied up in another VA loan you have not paid off. Then your remaining entitlement is set against the county loan limit. For 2026 the baseline conforming limit on a one-unit home is $832,750, set by the Federal Housing Finance Agency (FHFA), and it is higher in expensive counties. If the loan goes past what your remaining entitlement covers, the lender may ask for a down payment on that part. Look up your county on the 2026 loan limits page.
Paying your own agent
Since 10 August 2024, VA lets a veteran pay a buyer’s agent directly, under VA Circular 26-24-14. That fee is paid in cash at closing and cannot be added to the loan. If the seller pays your agent instead, VA does not count it as a seller concession.
How much is the VA funding fee in 2026?
The funding fee is a one-time charge that helps keep the VA loan program running. It takes the place of monthly mortgage insurance. It is a percentage of the loan amount, not of the price, and you can pay it at closing or add it to the loan. The table below is for purchase and construction loans.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Percent of the loan amount. Source: VA.gov, funding fee and closing costs, read on 23 September 2026. These rates took effect on 7 April 2023 and are unchanged for 2026. If your only earlier VA loan was for a manufactured home, you still pay the first-use fee.
Who is exempt from the funding fee?
You do not pay the funding fee if any of these is true:
- You are receiving VA compensation for a service-connected disability.
- You are eligible for that compensation but receive retirement or active duty pay instead.
- You are a surviving spouse receiving Dependency and Indemnity Compensation.
- You are a service member with a proposed or memorandum rating, before closing, that says you are eligible for compensation because of a pre-discharge claim.
- You are on active duty and show, on or before closing, that you received a Purple Heart.
VA says more than half of VA borrowers since 2021 paid no funding fee. If you pay the fee and are later awarded compensation back to a date before closing, you may be able to get a refund from VA. Want to see what the fee does to the loan amount? The VA loan calculator runs every tier.
What credit score and income do you need for a VA loan?
Credit score
VA does not set a minimum credit score. Lenders set their own, often around 620, and some go lower. For context, the median credit score on VA purchase loans was 727 in 2023, according to the Consumer Financial Protection Bureau (CFPB). A score that meets one lender’s floor may not meet another’s.
Debt-to-income ratio
VA’s guideline is a debt-to-income ratio of 41%. That is your monthly debts, including the new housing payment, divided by your gross monthly income. Going above 41% is allowed. If your residual income is at least 20% above VA’s minimum, the lender needs no extra justification (38 CFR 36.4340). Work out your own ratio with the debt-to-income calculator.
Residual income
Residual income is the money left each month after the housing payment, other debts and taxes. VA sets a minimum by region and family size. It asks a simple question: after the bills, is enough left to live on?
Income that is not taxed
VA disability compensation, and other verified income that is not taxed and is likely to continue, can be “grossed up” when the lender works out your ratio. That can help the numbers.
Which homes can you buy with a VA loan?
The home has to be the one you live in. You certify that you intend to live there. If you are on active duty and cannot move in yet, your spouse can meet the rule, and so can a dependent child through a guardian or attorney-in-fact (38 U.S.C. 3704(c)). Rentals and vacation homes do not qualify.
- Single-family homes, including new construction.
- 2 to 4 unit homes, if you live in one of the units.
- Condos, if VA has approved the condo project, or the single unit gets approval.
- Manufactured homes on a permanent foundation, titled as real property.
The home must pass a VA appraisal and meet VA’s Minimum Property Requirements. VA updated those rules in June 2026. It removed an old radon requirement and revised some rules for older homes (VA News, 25 June 2026).
VA vs FHA vs conventional: how do they compare?
| VA | FHA | Conventional | |
|---|---|---|---|
| Who can use it | Eligible veterans, service members, Guard and Reserve, some surviving spouses | Any borrower who meets FHA rules | Any borrower who meets lender rules |
| Down payment | None required for eligible borrowers when the price is not above the appraised value | 3.5% with a 580 score, 10% with 500 to 579 | 3% on HomeReady and Home Possible, 5% on most others |
| Mortgage insurance | None. A one-time funding fee instead, unless exempt | Upfront and annual premiums, usually for the life of the loan | PMI under 20% down, and it can be removed |
| Credit score floor | None set by VA. Lenders often want about 620 | 580, or 500 with 10% down | About 620 is typical |
| Loan size | No VA limit with full entitlement | County FHA limits | County conforming limits |
| Occupancy | Must be your home | Must be your home | Home, second home or rental |
Program rules and common lender practice, not offers. Lenders often set stricter thresholds of their own. The other programs are covered on the home loans page.
For most eligible buyers, the VA loan’s mix of no required down payment and no monthly mortgage insurance is hard to match. The trade is the funding fee, and many borrowers are exempt from it. If you are weighing FHA against a conventional loan instead, FHA vs conventional walks through that choice.
How do you buy a home with a VA loan, step by step?
- Check that you are eligible. Match your service to the table above. If you are not sure, a lender can request your COE and tell you.
- Look at your credit and budget. Pull your credit reports, list your monthly debts, and run your debt-to-income ratio. Set aside cash for closing costs and moving, even with no down payment.
- Talk to a loan officer who does VA loans. Not every lender makes them. Ask for a preapproval letter so sellers take your offer seriously. How preapproval works covers the documents.
- Pick a real estate agent. Ideally one who has closed VA sales. Agree up front on how the agent will be paid.
- Make an offer. You can ask the seller to pay closing costs, plus up to 4% of the home’s reasonable value in concessions.
- Get the VA appraisal. The lender orders it. The appraiser sets the home’s value and checks VA’s Minimum Property Requirements. You also get a VA Notice of Value.
- Go through underwriting. The lender checks your income, debts, assets and credit, and may ask for more documents.
- Close and move in. Pay or finance the funding fee unless you are exempt, sign, and move into the home you certified you would live in.
Many VA buyers are buying for the first time. If that is you, state first-time buyer programs are on the first-time home buyer page, and the closing cost calculator estimates the cash to bring.
What are the most common VA loan myths?
- “I can only use it once.” False. The benefit is reusable. In fiscal year 2025, 50.2% of all VA loans were made on restored entitlement.
- “I need a down payment.” Not if the price is not above the appraised value and you meet VA and lender rules.
- “VA needs a 620 credit score.” VA sets no minimum. Lenders set their own.
- “There is a loan limit.” Not with full entitlement, since 2020.
- “The funding fee is like mortgage insurance forever.” It is charged once, can be added to the loan, and many borrowers pay nothing.
- “The VA is my lender.” Private lenders make the loan. VA guarantees part of it.
- “My spouse cannot use it while I am deployed.” A spouse living in the home can meet the occupancy rule for an active duty borrower.
Already have a VA loan?
This page is about buying. If you already own a home with a VA loan, the streamline refinance (IRRRL) is covered on the refinance guide, and VA cash-out is covered on the cash-out refinance page.
VA home loan questions people ask
Who is eligible for a VA home loan?
Veterans, active duty service members, National Guard and Reserve members who meet VA service requirements, and some surviving spouses. Most veterans need a discharge that is other than dishonorable. You prove eligibility with a Certificate of Eligibility (COE), which a lender can usually request for you online.
Do you need a down payment for a VA loan?
No down payment is required for eligible borrowers when the price is not higher than the appraised value, subject to VA eligibility and lender approval. In fiscal year 2025, 74% of VA purchase loans had no down payment, according to the VA Annual Benefits Report.
What credit score do you need for a VA loan?
VA does not set a minimum credit score. Lenders set their own, often around 620, and some go lower. The median credit score on a VA purchase loan was 727 in 2023, according to the CFPB.
How much is the VA funding fee in 2026?
On a purchase it is 2.15% of the loan amount on first use with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. After first use it is 3.3% with less than 5% down. The fee is charged once and can be added to the loan. These fees took effect on 7 April 2023 and still apply in 2026.
Who does not pay the VA funding fee?
VA lists five groups: people receiving VA compensation for a service-connected disability, people eligible for that compensation who get retirement or active duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation, service members with a proposed or memorandum rating before closing, and active duty members who show a Purple Heart on or before closing. VA says more than half of VA borrowers since 2021 paid no funding fee.
Is there a VA loan limit in 2026?
Not if you have full entitlement. Since 1 January 2020, VA sets no loan limit for borrowers with full entitlement, though you still have to meet the lender’s standards and the home has to appraise. A limit applies only when part of your entitlement is still tied up in another VA loan.
Can you use a VA loan more than once?
Yes. The benefit is reusable. Entitlement is restored once an earlier VA loan is paid off and the home is sold, and there is a one-time restoration if you paid it off but kept the home. In fiscal year 2025, 50.2% of all VA loans were made on restored entitlement.
Can you have two VA loans at the same time?
Yes, if you have enough remaining entitlement. The new home must still be the home you live in. On a larger purchase, the lender may ask for a down payment on the part of the loan your remaining entitlement does not cover.
Can a surviving spouse get a VA home loan?
Yes, in several cases. The spouse must be eligible for, or receiving, Dependency and Indemnity Compensation, and meet one of the conditions VA lists, such as being the unremarried spouse of a service member or veteran who died in service or from a service-connected disability. Surviving spouses who receive that compensation are also exempt from the funding fee.
Can the seller pay closing costs on a VA loan?
Yes. VA does not limit seller credits for normal closing costs. It caps seller concessions, such as paying the funding fee or paying off a buyer’s debts, at 4% of the home’s reasonable value.
Can you buy a condo, a 2 to 4 unit home or a manufactured home with a VA loan?
Yes. A 2 to 4 unit home works if you live in one unit. A condo project must be approved by VA, or the single unit must be. A manufactured home must sit on a permanent foundation and be titled as real property.
Does the VA lend the money, and is BEDRWay part of the VA?
No to both. Private lenders make VA loans and VA guarantees part of each loan. BEDRWay is a private company. We are not a lender and not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. We connect you with licensed loan officers.
Use your VA home loan benefit
Program rules are general. Your file is specific. Answer a few questions and BEDRWay introduces you to one licensed loan officer in your state who can talk you through VA loans. The loan officer pays BEDRWay for the introduction, and you do not pay BEDRWay anything. BEDRWay is a private company. We are not a lender and not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. We connect you with licensed loan officers.
Check my VA loan options →Sources
- U.S. Department of Veterans Affairs, VA funding fee and closing costs, read 23 September 2026.
- U.S. Department of Veterans Affairs, eligibility for VA home loan programs, read 23 September 2026.
- U.S. Department of Veterans Affairs, VA home loan entitlement and limits, read 23 September 2026.
- U.S. Department of Veterans Affairs, how to request a COE, read 23 September 2026.
- U.S. Department of Veterans Affairs, VA-backed purchase loan, read 23 September 2026.
- U.S. Department of Veterans Affairs, VA home loans for surviving spouses, read 23 September 2026.
- VA, Annual Benefits Report, fiscal year 2025, Loan Guaranty, data as of 30 September 2025.
- VA News, who pays the funding fee and who is exempt, 11 June 2026.
- VA News, VA updates home loan appraisal requirements, 25 June 2026.
- VA, Circular 26-24-14, buyer-broker charges, effective 10 August 2024.
- 38 CFR 36.4340, VA underwriting standards, and 38 U.S.C. 3704, occupancy.
- FHFA, conforming loan limit values for 2026, announced 25 November 2025.
- CFPB, 2023 mortgage market activity and trends, December 2024.