VA Loans

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs and available to active-duty service members, veterans, and eligible surviving spouses. This valuable benefit was established in 1944 as part of the GI Bill to help veterans purchase homes.

The VA doesn't actually lend money—they guarantee a portion of the loan, which enables lenders to offer favorable terms including zero down payment, no monthly mortgage insurance, and competitive interest rates.

VA loans are one of the most powerful benefits available to those who have served our country, helping millions of veterans achieve homeownership since the program's inception.

No Down Payment: VA loans allow you to finance 100% of a home's purchase price. This is one of the few remaining zero-down loan programs available.

No Mortgage Insurance: Unlike FHA and conventional loans with less than 20% down, VA loans don't require monthly mortgage insurance, which can save you hundreds per month.

Competitive Rates: VA loans typically offer some of the lowest interest rates available because they're backed by the federal government.

Flexible Credit Requirements: While lenders set their own standards, VA loans generally have more lenient credit requirements than conventional loans.

Limited Closing Costs: The VA limits what closing costs veterans can pay, and sellers can pay all of your closing costs if negotiated.

Active Duty: Service members who have served 90 consecutive days during wartime or 181 days during peacetime.

Veterans: Those who served the minimum service requirements and received a discharge other than dishonorable.

National Guard/Reserves: Members who have completed at least 6 years of service.

Surviving Spouses: Spouses of service members who died in service or from a service-connected disability may be eligible.

Certificate of Eligibility: You'll need to obtain a COE from the VA, which your lender can help you get, often instantly.

While VA loans don't have monthly mortgage insurance, there is a one-time VA funding fee that helps keep the program running. This fee typically ranges from 1.4% to 3.6% of the loan amount, depending on your down payment and whether it's your first VA loan.

The funding fee can be rolled into your loan amount, so you don't have to pay it out of pocket at closing. Veterans receiving VA disability compensation are exempt from the funding fee.

Even with the funding fee, VA loans are typically more affordable than conventional or FHA loans due to the lack of monthly mortgage insurance and competitive interest rates.

As of 2020, the VA eliminated loan limits for veterans with full entitlement. This means eligible veterans can borrow as much as a lender is willing to lend based on their income and credit, without having to make a down payment.

Veterans with remaining entitlement from a previous VA loan may have limits, but can still use their remaining benefit. Your lender can calculate your available entitlement.

Even without loan limits, lenders will still qualify you based on your ability to repay the loan, considering your income, debts, and creditworthiness.