The Key to Homeownership for Veterans & Service Members
For those who have served our country, the path to homeownership can be made easier, more affordable, and more flexible through a VA loan. Whether you’re an eligible veteran, active-duty service member, or surviving spouse, this benefit can be a powerful tool to help you purchase, build, or refinance a home — often with no down payment required.
In this guide, we’ll walk through what a VA loan is, how it works, who qualifies, and whether it might be the right choice for you.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. It’s not issued directly by the VA — instead, it’s offered by VA-approved lenders like banks, credit unions, and mortgage companies.
If you qualify, you can use a VA loan to:
The real draw? VA loans typically require no down payment, no monthly mortgage insurance, and they often have competitive interest rates.
How VA Loans Work
While the VA guarantees part of the loan for your lender (reducing their risk), you’ll still go through the application process with a bank or mortgage company. Terms can range from 10 to 30 years, with fixed or adjustable rates available.
Most borrowers skip the down payment entirely and avoid paying mortgage insurance — a major savings compared to FHA or conventional loans. However, there are still some upfront costs to consider, especially the VA funding fee.
Understanding the VA Funding Fee
The VA funding fee helps sustain the program and offsets the risk of offering no-down-payment loans.
Funding Fee Ranges:
| Down Payment |
First-Time Use |
Subsequent Use |
| 0%–5% |
2.15% |
3.30% |
| 5%–9.99% |
1.50% |
1.50% |
| 10% or more |
1.25% |
1.25% |
Exemptions: Veterans receiving (or eligible for) service-related disability compensation do not have to pay this fee.
You can pay the funding fee upfront at closing or roll it into your mortgage — though this will increase your total loan amount and interest over time.
Who’s Eligible for a VA Loan?
Eligibility is based on your service history, duty status, or — in some cases — that of your spouse. You’ll need to meet minimum service requirements, which vary depending on whether you’re:
The first step is obtaining your Certificate of Eligibility (COE) through the VA’s eBenefits portal, by mail, or via your lender. This document proves you meet the service requirements for the program.
Other Requirements
While the VA is flexible, most lenders look for:
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Credit score: Typically 620 or higher
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Debt-to-income ratio: Usually 41% or less, though exceptions can be made
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Primary residence: You must live in the property (no vacation homes or investment properties)
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Property condition: The home must meet VA safety and structural standards
VA Loan Limits in 2025
If you have full entitlement, there’s no official cap on how much you can borrow — though your lender will still determine what you qualify for.
For borrowers with partial entitlement, loan limits apply. In most counties for 2025, the limit is $806,500, and up to $1,209,750 in high-cost areas.
Types of VA Loans
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VA Purchase Loan – Buy a primary residence
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VA Construction Loan – Build a new home (including land, labor, and materials)
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VA IRRRL (Streamline Refinance) – Lower your rate or change your term with minimal paperwork
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VA Cash-Out Refinance – Tap into your home equity for cash
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VA Renovation Loan – Buy and improve a property
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Native American Direct Loan (NADL) – For eligible Native American veterans on federal trust land
VA Loan Pros & Cons
Pros:
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No down payment in most cases
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No monthly mortgage insurance
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Competitive interest rates
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Limits on certain lender fees
Cons:
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Funding fee (unless exempt)
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Primary residence requirement
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Property condition standards may be stricter than conventional loans
Is a VA Loan Right for You?
A VA loan can be a game-changer if you:
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Would struggle to qualify for a conventional loan
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Want to avoid a large down payment
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Plan to stay in your home long-term
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Live in a high-cost area but still want to avoid mortgage insurance
On the other hand, if you can comfortably put 20% down on a conventional mortgage, you might pay fewer fees.
How to Apply for a VA Loan
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Get Your COE
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Gather Financial Documents – Pay stubs, bank statements, tax returns
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Shop Around – Compare at least three VA-approved lenders
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Get Preapproved – Strengthen your homebuying offer
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Apply for the Loan – Once you find a home and have an accepted offer
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Close & Move In – Celebrate your new home!
Final Thoughts
For those who have served, a VA loan can be one of the most powerful and cost-effective paths to homeownership. The combination of no down payment, competitive interest rates, and no mortgage insurance creates a financial advantage that’s hard to match.
If you’re a veteran, active-duty service member, or surviving spouse considering buying, building, or refinancing a home, now may be the perfect time to explore your VA loan benefits.