VA Loans
VA loans are guaranteed by the Department of Veterans Affairs and let eligible veterans, active-duty service members, and surviving spouses buy with zero down payment and no monthly mortgage insurance.
At a glance
| Minimum down payment | 0% |
|---|---|
| Minimum credit score | Most lenders require 580–620; the VA itself sets no minimum |
| Maximum loan amount | No maximum for borrowers with full entitlement; jumbo VA available above conforming limits |
| Mortgage insurance | None. A one-time VA funding fee (1.25%–3.3%) is charged instead and can be rolled into the loan |
Best for
- Active-duty service members, veterans, and National Guard/Reserve members
- Surviving spouses of service members who died in the line of duty
- Buyers with no down payment savings
- Veterans who want to avoid monthly mortgage insurance
Eligibility requirements
- Valid Certificate of Eligibility (COE) from the VA
- Minimum service: 90 days active duty wartime, 181 days peacetime, or 6 years Guard/Reserve
- Property must be the borrower's primary residence (occupied within 60 days)
- Home must pass a VA appraisal and meet Minimum Property Requirements
- Sufficient income and acceptable credit per lender overlay
Pros
- Zero down payment required
- No monthly mortgage insurance
- Competitive interest rates, often lower than conventional
- Assumable by another qualified VA borrower
- Funding fee waived for veterans with service-connected disabilities
- Reusable benefit — you can use VA financing more than once
Cons
- Only available to eligible service members and qualifying spouses
- Funding fee adds 1.25%–3.3% to the loan amount (unless waived)
- VA appraisal can be stricter on property condition
- Cannot be used for investment properties or vacation homes
Documents you'll need
- Certificate of Eligibility (COE) — we can pull this for you
- DD-214 (for veterans) or Statement of Service (active duty)
- Two most recent pay stubs (LES for active duty)
- Two years of W-2s and tax returns
- Two months of bank statements
- VA disability award letter, if applicable
Why the VA loan is the best benefit in mortgage lending
For eligible borrowers, a VA loan is almost always the best financing option available. Zero down, no monthly mortgage insurance, and competitive rates create thousands of dollars in monthly and lifetime savings versus any other program.
The most common mistake we see is veterans defaulting to FHA or conventional because they didn’t realize they were eligible. If you served — even briefly in the Reserves — let’s pull your Certificate of Eligibility and confirm.
Frequently asked questions
- How many times can I use my VA loan benefit?
- Unlimited times, as long as you have remaining entitlement or have paid off a previous VA loan. You can also have two VA loans simultaneously in some scenarios — for example, when relocating for a PCS move.
- What's the VA funding fee?
- A one-time fee that funds the VA loan program. For first-time use with 0% down, it's 2.15% (regular military) or 2.4% (Guard/Reserve). Subsequent uses are 3.3%. It's waived for veterans receiving VA disability compensation.
- Can I buy a multi-unit property with a VA loan?
- Yes. VA allows 1–4 unit properties as long as you occupy one unit as your primary residence.
- Do VA loans have a maximum loan amount?
- Not for borrowers with full entitlement. You can borrow above the conforming loan limit, though loans above the limit may require a down payment on the portion above.
Related loan programs
- FHA Loans — FHA loans are insured by the Federal Housing Administration and let you buy with as little as 3.5% down and a 580 credit score, making them a top choice for first-time buyers and credit rebuilders.
- Conventional Loans — Conventional loans aren't backed by a government agency, follow Fannie Mae and Freddie Mac guidelines, and reward strong credit with the lowest rates and most flexible terms available.
- Jumbo Loans — Jumbo loans finance home purchases above the annual conforming loan limit set by the FHFA. They require stronger credit and reserves but offer competitive pricing on luxury and high-cost area properties.