A Powerful Benefit Earned by Those Who Served — Zero Down, No PMI
VA loans are backed by the U.S. Department of Veterans Affairs and offer exceptional terms for eligible veterans, active-duty service members, and surviving spouses. No down payment required. No private mortgage insurance. Ever.
What Is a VA Loan?
A VA loan is a mortgage benefit provided to eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. The U.S. Department of Veterans Affairs guarantees a portion of the loan, allowing private lenders to offer favorable terms without requiring a down payment or private mortgage insurance.
VA loans are widely considered the best mortgage program available for those who qualify. The combination of zero down payment, no PMI, competitive interest rates, and limited closing costs can save eligible borrowers tens of thousands of dollars over the life of the loan compared to conventional financing.
Eligibility Requirements
Service Requirement
90 days active duty (wartime) or 181 days (peacetime); 6 years National Guard/Reserve
Certificate of Eligibility
Required — your lender can typically obtain this for you
Minimum Credit Score
No VA minimum; most lenders require 620+
Down Payment
0% required (full entitlement)
Debt-to-Income Ratio
41% guideline; higher ratios considered with residual income
Property Types
Primary residence only; single-family, condos (VA-approved), multi-unit (up to 4 units)
Down Payment Options
Full VA Entitlement (Most Borrowers)
No down payment required; no loan limit with full entitlement
Reduced Entitlement / Second VA Loan
A down payment may be required if entitlement is partially used
Voluntary Down Payment
Putting money down reduces the VA funding fee and monthly payment
Key Benefits
Zero Down Payment
Eligible borrowers with full entitlement can purchase a home with no down payment — regardless of the purchase price.
No Private Mortgage Insurance
VA loans never require PMI, saving borrowers $100–$300+ per month compared to conventional loans with less than 20% down.
Competitive Interest Rates
Because the VA guarantees a portion of the loan, lenders can offer rates that are typically 0.25–0.5% lower than conventional rates.
Limited Closing Costs
The VA limits the fees lenders can charge, and sellers can pay all of the buyer's VA-allowable closing costs.
No Prepayment Penalty
Pay off your VA loan early — or make extra payments — without any penalty.
VA Streamline Refinance (IRRRL)
Existing VA borrowers can refinance to a lower rate with minimal paperwork and no appraisal through the Interest Rate Reduction Refinance Loan program.
VA Funding Fee
VA loans don't require PMI, but most borrowers pay a one-time VA funding fee. This fee helps sustain the program for future veterans. It can be rolled into the loan balance.
First Use, 0% Down
2.15% of the loan amount
First Use, 5–9.99% Down
1.5% of the loan amount
First Use, 10%+ Down
1.25% of the loan amount
Subsequent Use, 0% Down
3.3% of the loan amount
Funding Fee Exemption
Veterans with a service-connected disability rating of 10%+ are exempt from the funding fee
Common Questions
How do I get a Certificate of Eligibility (COE)?
Your lender can typically obtain your COE directly through the VA's automated system in minutes. You can also request it yourself through the VA's eBenefits portal or by mailing VA Form 26-1880. Most VA-approved lenders handle this step for you.
Can I use a VA loan more than once?
Yes. VA loan benefits can be used multiple times. If you've paid off a previous VA loan and sold the property, your entitlement is fully restored. You can also have two VA loans simultaneously in some circumstances.
Can surviving spouses use VA loan benefits?
Yes. Unremarried surviving spouses of veterans who died in service or from a service-connected disability are eligible for VA loan benefits. Spouses of POW/MIA service members may also qualify.
Are there VA loan limits?
Borrowers with full VA entitlement have no loan limit — you can borrow as much as a lender will approve with no down payment. Loan limits only apply if you have reduced entitlement (e.g., you have an existing VA loan you haven't paid off).
Ready to Take the Next Step?
Connect with a licensed local lender who specializes in this program. Free pre-approval, no obligation, no hard credit pull.
Or call us at 800-206-4360