VA Loan Guide
VA loans are guaranteed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and certain surviving spouses. They're designed to make homeownership more accessible as a benefit of military service.
Who It Tends to Fit
VA loans fit eligible borrowers who want to minimize upfront cash needed at closing, since the program is well known for allowing no down payment for qualified buyers with full entitlement.
Key Features
- Often no down payment required for eligible, qualifying borrowers
- No ongoing monthly mortgage insurance, unlike FHA or low-down-payment conventional loans
- A one-time VA funding fee applies in most cases, though some borrowers (such as certain disabled veterans) are exempt
- Available for purchase and refinance, including a streamlined refinance option (IRRRL) for existing VA loan holders
General Qualifying Factors
- A Certificate of Eligibility (COE) confirming your service meets VA requirements
- Sufficient, verifiable income and an acceptable debt-to-income profile per VA and lender guidelines
- The home must generally be the borrower's primary residence
- The property must meet VA minimum property requirements, confirmed through a VA appraisal
Exact requirements vary by lender and can change over time, so treat the figures above as general starting points rather than guarantees. A licensed loan officer can confirm current guidelines for a specific program.
Costs to Expect
VA loans typically eliminate the need for a down payment and monthly mortgage insurance, but borrowers should still budget for the VA funding fee (which can often be financed into the loan) and standard closing costs.
Also Worth Knowing
Eligibility and entitlement rules can be nuanced, especially for borrowers who have used a VA loan before, so confirming your Certificate of Eligibility early is a useful first step.