Updated July 2026 · 12-minute read · Reviewed by a VA-approved lender
VA loans are one of the most powerful benefits available to military service members, veterans, and eligible spouses. With no down payment, no mortgage insurance, and competitive interest rates, VA loans have helped millions of Americans buy homes. Here's everything you need to know.
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. The VA doesn't lend money directly, instead, it guarantees a portion of the loan, which allows private lenders to offer better terms to eligible borrowers.
Key benefits:
You qualify for a VA loan if you meet one of the following service requirements:
Not sure if you qualify? You can get a Certificate of Eligibility (COE) from the VA to confirm your status.
As of 2020, there's no maximum loan limit for borrowers with full VA entitlement. However, lenders may impose their own limits based on your income, credit, and the property.
While there's no cap on the loan amount, the VA guarantees up to 25% of the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2026:
If you're buying a home above these limits, you may need to make a down payment on the amount over the limit.
Your "entitlement" is the amount the VA guarantees on your loan. Most borrowers have:
If you've used your VA loan benefit before, you may have "remaining entitlement" available for a second loan.
The VA charges a one-time funding fee to help offset the program's cost to taxpayers. This fee can be paid upfront or rolled into the loan.
| Loan type | First-time use | Subsequent use |
|---|---|---|
| Purchase, no down payment | 2.15% | 3.3% |
| Purchase, 5-10% down | 1.5% | 1.5% |
| Purchase, 10%+ down | 1.25% | 1.25% |
| IRRRL refinance | 0.5% | 0.5% |
| Cash-out refinance | 2.15% | 3.3% |
Your COE proves to lenders that you qualify for a VA loan. You can get it:
Shop around with at least three VA-approved lenders. Compare:
Use our mortgage calculator to estimate your monthly payment with different rates and down payments.
Work with a real estate agent who understands VA loans. Some sellers are hesitant about VA loans due to stricter appraisal requirements, so your agent can help navigate this.
The VA requires an appraisal to ensure the home meets minimum property requirements (MPRs) and is worth the purchase price. The appraisal costs $400-$800 and is paid by the buyer.
Review your Closing Disclosure (CD) at least three days before closing. Sign the final paperwork, and you'll get the keys to your new home.
| Feature | VA Loan | Conventional Loan |
|---|---|---|
| Down payment | 0% (no down payment) | 3-20% (PMI if <20%) |
| Mortgage insurance | None (just funding fee) | PMI required if <20% down |
| Credit score | 620 (some lenders 580) | 620-660+ (better rates with 740+) |
| Interest rates | Lower (0.25-0.5% less) | Higher for low down payment |
| Property requirements | Stricter (VA appraisal) | More flexible |
| Loan limits | No limit (with full entitlement) | Conforming: $806,500 most areas |
Bottom line: If you're eligible, a VA loan is almost always the better choice, especially if you have less than 20% for a down payment.
Yes. You can use your VA loan benefit multiple times, as long as you have remaining entitlement. If you've paid off a previous VA loan, you can restore your entitlement and use it again. Some borrowers have used VA loans 3-4 times.
No. VA loans are only for primary residences. You must intend to occupy the home as your main residence. However, you can use a VA loan to buy a multi-unit property (up to 4 units) as long as you live in one of the units.
Typically 30-45 days from application to closing. The VA appraisal can add 1-2 weeks compared to a conventional appraisal. Streamline refinances (IRRRL) can close in as little as 2-3 weeks.
Yes, but not for the same property. You can use a VA loan for your primary residence and a conventional loan for a second home or investment property. You can't have two mortgages on the same property.
Some sellers prefer conventional or cash offers because VA loans have stricter appraisal requirements. Work with your real estate agent to educate the seller about VA loans. In competitive markets, you may need to offer a higher price or cover some of the seller's costs to make your offer more attractive.
VA loans are an incredible benefit for eligible service members and veterans. With no down payment, no mortgage insurance, and competitive rates, they make homeownership accessible to those who've served. If you qualify, a VA loan should be your first choice, especially if you have limited savings for a down payment.
Ready to explore your options? Use our mortgage calculator to estimate your monthly payment, then get pre-approved with a VA-approved lender.
See how much you can save with a VA loan, no down payment, no PMI.
Open the Mortgage Calculator →