VA loans, guaranteed by the Department of Veterans Affairs, let eligible veterans, service members and some surviving spouses buy with no down payment and no monthly mortgage insurance, usually at competitive rates. Instead, most borrowers pay a one-time funding fee (2.15% of the loan for a first use with less than 5% down), which veterans with a service-connected disability rating don’t pay.
Who’s eligible
Eligibility depends on length and type of service: typically 90 days of active service in wartime, 181 days in peacetime, or six years in the National Guard or Reserves, among other paths. Some surviving spouses qualify too. You’ll need a Certificate of Eligibility (COE), which your lender can usually request online.
The main benefits
- No down payment with full entitlement.
- No monthly mortgage insurance.
- No loan limit for borrowers with full entitlement, though lenders set their own maximums.
- Flexible credit: the VA sets no minimum score, though many lenders want around 620.
- Limits on closing costs the veteran can be charged.
The funding fee
| Down payment | First use | Later uses |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to under 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
The fee can be financed into the loan. It’s waived for veterans receiving compensation for a service-connected disability and some others.
Try it: VA funding fee calculatorSee your funding fee for your down payment and use, and the total loan with the fee financed.VA vs. other loans
Compared with FHA (3.5% down plus lifetime mortgage insurance) or conventional with less than 20% down (PMI), a VA loan usually has the lowest monthly payment for eligible buyers. Compare the payment with the mortgage payment calculator.
Things to know
- Primary residence only: you must plan to live in the home, though it can be a two- to four-unit property.
- Appraisal standards: the VA appraisal checks that the home is safe and sound, which can mean repairs before closing.
- Seller concessions are capped at 4%, but normal closing costs paid by the seller don’t count toward it; see the seller concessions calculator.
- Assumable: a qualified buyer can take over your VA loan later, which can be valuable if rates are higher then; see assumable mortgages.
Competing with a VA offer
Some sellers worry about VA appraisals. A strong pre-approval and an agent who explains the process help. Check your position with the offer strength score.
Common questions
Do VA loans have a down payment?
No down payment is required for borrowers with full entitlement, and there’s no monthly mortgage insurance.
What is the VA funding fee?
A one-time fee, 2.15% of the loan for a first use with less than 5% down, lower with more down. It can be financed and is waived for veterans with service-connected disability compensation.
Can I use a VA loan more than once?
Yes. Entitlement can be restored after you sell and repay a VA loan, and later uses carry a higher funding fee with less than 5% down.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.