Who is eligible for a VA loan?

Veterans with 90+ days of active wartime service or 181+ days of peacetime service, active duty service members, National Guard/Reserve members with 6+ years of service, and surviving spouses of veterans who died in service or from a service-connected disability.

Do VA loans require a down payment?

No. VA loans offer 100% financing with no down payment required. There's also no private mortgage insurance (PMI). You'll pay a one-time VA funding fee (1.25-3.3% of the loan), which can be rolled into the loan amount.

Is there a VA loan limit?

For veterans with full entitlement (no existing VA loans), there is no loan limit—lenders can offer any amount they qualify you for. For veterans with reduced entitlement (existing VA loan), the 2026 conforming loan limit of $766,550 applies in most areas.

VA Loans: Eligibility, Benefits, and How to Apply (2026)

VA loans are one of the best mortgage benefits available to U.S. military members. Zero down payment, no PMI, and often the lowest rates on the market. Here’s how to use your benefit.

VA Loan Benefits at a Glance

Benefit	Details
Down payment	$0 required
Private mortgage insurance (PMI)	None
Interest rates	Typically 0.25-0.5% lower than conventional
Credit score minimum	No VA minimum (lenders typically require 620+)
Closing costs	Limited by VA; seller can pay up to 4%
Prepayment penalty	None
Loan limits	None for full entitlement
Assumable	Yes—buyer can assume the VA loan
Funding fee	1.25-3.3% (one-time, can be financed)
Number of times you can use it	Unlimited (entitlement can be restored)

Eligibility Requirements

Minimum Service Requirements

Service Type	Minimum Service	Certificate of Eligibility
Active duty (wartime)	90 consecutive days	DD-214
Active duty (peacetime)	181 consecutive days	DD-214
Currently active duty	90 days (can be less during wartime)	Statement of service from commander
National Guard	90 days active duty OR 6 years in Guard	DD-214 or NGB Form 22
Reserves	90 days active duty OR 6 years in Reserves	DD-214 or proof of service
Surviving spouse	Spouse died in service or from service-connected disability	VA Form 26-1817

Who Is NOT Eligible

Not Eligible	Alternative
Civilians with no military service	FHA, conventional, USDA loans
Veterans with dishonorable discharge	May appeal discharge status
Guard/Reserve with < 6 years and no active duty	Complete 6 years or serve 90 days active duty
Ex-spouses after divorce	Eligibility ends with marriage

VA Funding Fee (2026)

The funding fee is a one-time charge that helps fund the VA loan program:

First-Time Use

Down Payment	Active Duty/Veteran	National Guard/Reserves
0% down	2.15%	2.40%
5-9.99% down	1.50%	1.75%
10%+ down	1.25%	1.50%

Subsequent Use

Down Payment	Active Duty/Veteran	National Guard/Reserves
0% down	3.30%	3.30%
5-9.99% down	1.50%	1.75%
10%+ down	1.25%	1.50%

Funding Fee Exemptions

Exempt Group	Fee
Veterans receiving VA disability compensation	$0
Surviving spouse receiving DIC benefits	$0
Purple Heart recipients (active duty)	$0
Veterans eligible for disability but receiving retirement pay	$0

Funding Fee In Dollars

Loan Amount	First Use (0% Down)	Subsequent Use (0% Down)	With 10% Down
$200,000	$4,300	$6,600	$2,500
$300,000	$6,450	$9,900	$3,750
$400,000	$8,600	$13,200	$5,000
$500,000	$10,750	$16,500	$6,250

VA Loan vs. Other Mortgage Types

Feature	VA Loan	FHA Loan	Conventional
Min. down payment	0%	3.5%	3-5%
Mortgage insurance	None	UFMIP + annual MIP	PMI until 78-80% LTV
Min. credit score (VA/FHA min)	None (lender: 620)	580	620
Funding/guarantee fee	2.15% first use	1.75% UFMIP	None
Interest rate	Lowest	Low	Moderate
Loan limits	None (full entitlement)	$498,257-$1,149,825	$766,550 (conforming)
Property types	Primary residence	Primary residence	Primary, second, investment
Seller concessions	Up to 4%	Up to 6%	3-9%

Monthly Payment Comparison: $350,000 Home

Cost	VA (0% Down)	FHA (3.5% Down)	Conventional (5% Down)
Down payment	$0	$12,250	$17,500
Loan amount	$350,000	$337,750 + $5,911 UFMIP	$332,500
Funding fee/UFMIP	$7,525 (financed)	$5,911 (financed)	$0
Total loan	$357,525	$343,661	$332,500
Rate	6.25%	6.5%	6.75%
P&I	$2,201	$2,173	$2,156
MI/MIP	$0	$155/month	$139/month
Total monthly	$2,201	$2,328	$2,295

VA loan wins: lowest monthly payment despite 0% down and no PMI.

VA Loan Entitlement

Full vs. Reduced Entitlement

Type	Situation	Loan Limit
Full entitlement	No existing VA loans; or previous VA loans fully paid and entitlement restored	No limit
Reduced entitlement	One VA loan currently active (haven’t sold or paid off)	County conforming limit applies

Restoring Entitlement

Scenario	Entitlement Restored?
Sold the home, paid off the VA loan	Yes—one-time restoration
Refinanced out of VA loan into conventional	Yes
Still own the home with VA loan	No—must sell or pay off first
Assumed by another veteran	Yes, if buyer substitutes their entitlement

The VA Loan Process

Step	Action	Timeline
1	Get your Certificate of Eligibility (COE)	Instant online or 1-2 weeks by mail
2	Get pre-approved with a VA-approved lender	1-3 days
3	Find a home and make an offer	Varies
4	VA appraisal ordered	5-10 business days
5	Underwriting and loan processing	2-4 weeks
6	Closing	30-45 days total from offer

VA Appraisal Requirements

Requirement	What the VA Appraiser Checks
Market value	Home must be worth the purchase price
Minimum Property Requirements (MPRs)	Safe, sanitary, structurally sound
Adequate heating/cooling	Must have functional HVAC
Roof condition	Must have at least 3 years of remaining life
Pest inspection	Required in most areas (termites, etc.)
No lead paint hazards	Peeling paint in pre-1978 homes must be addressed
Safe water supply	Well water must be tested

If the Appraisal Comes in Low

Option	Details
Negotiate with seller	Ask seller to lower the price to appraised value
Pay the difference	Cover the gap in cash (above the loan amount)
Request a Reconsideration of Value	Provide comparable sales to challenge the appraisal
Walk away	VA loans allow this without penalty

VA Loan Myths

Myth	Reality
“VA loans are only for first-time buyers”	No—you can use VA benefits repeatedly
“VA loans take forever to close”	Average is 30-45 days, same as conventional
“Sellers don’t like VA offers”	Less true now; VA offers are often competitive
“You need perfect credit”	No—620 is a common lender minimum
“You can only use it once”	Entitlement can be restored and reused
“VA loans are only for houses”	VA covers houses, condos (VA-approved), and manufactured homes