Loan option
VA loans
A VA loan is made by a private lender and guaranteed in part by the U.S. Department of Veterans Affairs. For eligible service members, veterans and certain surviving spouses it is often the strongest option available, with no down payment required on many purchases and no monthly mortgage insurance.
How it works
How VA loans work
The loan is funded by a private lender. The VA guarantees a portion of it under the VA home loan program rules, which is what allows terms such as no required down payment on many purchases.
Eligibility is established with a Certificate of Eligibility, which the VA issues based on your service record. A lender can usually help you obtain it, and the VA publishes the process directly.
VA loans have no monthly mortgage insurance. Most carry a one-time funding fee instead, which can often be financed into the loan. Some borrowers are exempt from the funding fee, and the exemption criteria are set by the VA.
The property must be appraised by a VA-assigned appraiser and meet the VA's Minimum Property Requirements. The loan is also for a home you intend to occupy; the VA program is not an investment property program.
What to weigh up
- VA entitlement can be partially used and restored, which affects what is available for a subsequent purchase. This is worth checking before you plan a second VA purchase.
- Some sellers and agents misunderstand VA appraisals. A well-prepared offer can address that directly.
- Occupancy requirements apply, with specific allowances for deployment and other circumstances defined by the VA.
Set by the lender, not by us
These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.
- Minimum credit score and residual income analysis
- Maximum loan amount the lender will extend without a down payment
- How the lender handles appraisal repair requirements
Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.
Terms used on this page
- Pre-approval
- A lender's assessment after reviewing documentation and credit, indicating what it expects to lend. It carries more weight with sellers than a pre-qualification.It is not a loan commitment. The lender still underwrites the file and the property, and terms can change if your situation does.
- Appraisal
- An independent opinion of a property's value, prepared by a licensed appraiser for the lender, supported by recent sales of comparable properties.Some programs also apply property condition standards through the appraisal, which is where older housing stock can run into trouble.
- Underwriting
- The lender's assessment of whether to make the loan: the borrower, the property, the documentation and the risk, measured against the program's guidelines and the lender's own overlays.No mortgage program skips underwriting. Programs described as "no income verification" change what is documented, not whether the file is reviewed.
Questions about this program
- Is this company part of the VA, or endorsed by it?
- No. This is a private mortgage brokerage. It is not a government agency, and it is not affiliated with, endorsed by, or acting on behalf of the U.S. Department of Veterans Affairs or any other government body. VA loans are originated by private lenders under VA program rules.
- Can I use a VA loan more than once?
- VA entitlement can often be reused, and in some circumstances it can be used for a second loan while a first is still outstanding. How much entitlement remains available depends on your history, so it needs to be confirmed with the VA and the lender.
- Do VA loans require mortgage insurance?
- No monthly mortgage insurance. Most VA loans carry a one-time funding fee instead, which some borrowers are exempt from. The VA sets the fee structure and the exemption criteria.
Official sources
Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.
- VA home loan programs (opens in a new tab) — U.S. Department of Veterans Affairs
- How to request a Certificate of Eligibility (COE) (opens in a new tab) — U.S. Department of Veterans Affairs
- Explore loan options (opens in a new tab) — Consumer Financial Protection Bureau
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Talk it through before you start shopping
Bring your situation, not your paperwork. A first conversation is about which programs actually fit and what the numbers look like — no documents, no credit pull, no commitment.