🇺🇸 What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA) for eligible military service members, veterans, and surviving spouses. Created in 1944 as part of the GI Bill, VA loans have helped 25+ million veterans become homeowners.
The VA doesn't lend money directly - instead, it guarantees a portion of the loan (usually 25%), protecting lenders from losses if borrowers default. This guarantee allows lenders to offer unbeatable terms: 0% down payment, no PMI, and competitive rates.
🎖️ VA Loan Benefits (Why It's the BEST Mortgage):
- ✅ 0% down payment - Buy $806K home with $0 down (save $161,300 vs 20% down)
- ✅ NO private mortgage insurance (PMI) - Save $200-$400/month ($72K-$144K over 30 years)
- ✅ Lower rates - 5.75-6.25% (0.25% lower than conventional)
- ✅ No maximum income limits - Any income level qualifies
- ✅ Flexible credit requirements - 580+ credit score accepted by most lenders
- ✅ Seller can pay ALL closing costs - Up to 4% of purchase price
- ✅ No prepayment penalty - Pay off early without fees
- ✅ Assumable loans - Buyer can take over your rate (huge benefit in high-rate environment)
- ✅ Reusable benefit - Use VA loan multiple times throughout life
- ✅ Foreclosure protection - VA helps prevent foreclosure with loan modifications
💰 How Much Veterans Save with VA Loans:
Example: $500,000 Home Purchase
VA Loan:
- • Down payment: $0
- • PMI: $0/month
- • Rate: 6.0%
- • Payment: $2,998/month
Conventional Loan:
- • Down payment: $100,000 (20%)
- • PMI: $0/month (20% down)
- • Rate: 6.25%
- • Payment: $2,462/month
💰 VA Loan Savings:
- • $100,000 saved on down payment (can invest or use for renovations)
- • Lower upfront costs = easier to buy
- • Total savings: $100,000+
🚀 Ready to Get Pre-Approved for VA Loan?
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Compare VA Lenders →✅ VA Loan Eligibility Requirements 2026
Here's who qualifies for VA loans in 2026:
1. Service Requirements
✅ Active Duty Military:
- 90+ consecutive days during wartime
- 181+ consecutive days during peacetime
✅ Veterans:
- Honorable discharge required
- Meet minimum service requirements above
✅ National Guard & Reserves:
- 6+ years of service
- Honorable discharge or still serving
✅ Surviving Spouses:
- Spouse of service member who died in service
- Spouse of veteran who died from service-connected disability
- Must not have remarried (some exceptions)
2. Certificate of Eligibility (COE)
You MUST obtain a Certificate of Eligibility (COE) from the VA to use a VA loan.
How to Get Your COE (3 Ways):
- Online (Fastest): Apply at eBenefits.va.gov - Get COE in minutes
- Through Lender: VA-approved lenders can request COE on your behalf
- By Mail: Submit VA Form 26-1880 with DD-214 to VA Regional Loan Center
📄 Documents Needed for COE:
- DD Form 214 (discharge papers)
- Statement of Service (if active duty)
- NGB Form 22 (National Guard)
- Marriage certificate + death certificate (surviving spouses)
3. Credit & Income Requirements
While the VA has no minimum credit score requirement, most lenders require:
- Credit score: 580-620+ (varies by lender)
- Debt-to-income ratio: 41% maximum (some lenders allow 50%)
- Stable income: 2 years employment history preferred
- No maximum income limits (unlike USDA loans)
💵 VA Loan Limits 2026
VA loan limits increased 5.4% in 2026. Here's what you need to know:
🔑 Key Point: NO LIMIT with Full Entitlement
If you have full VA entitlement (never used VA loan OR previous VA loan paid off), there is NO maximum loan amount. You can buy a $2 million home with 0% down if you qualify income-wise.
Loan limits ONLY apply if you have remaining entitlement (still have an active VA loan on another property).
| Area Type | 2026 Limit | Examples |
|---|---|---|
| Standard Areas | $806,500 | Most US counties (75%) |
| High-Cost Areas | $1,209,750 | San Francisco, LA, NYC, Seattle |
💰 VA Funding Fee Explained
The VA funding fee is a one-time charge that helps keep the VA loan program running. It's the ONLY major cost of VA loans (no PMI, no down payment required).
| Loan Type | Down Payment | First Use | Subsequent Use |
|---|---|---|---|
| Purchase/Construction | 0% | 2.15% | 3.3% |
| Purchase/Construction | 5-9.99% | 1.5% | 1.5% |
| Purchase/Construction | 10%+ | 1.25% | 1.25% |
| Refinance (IRRRL) | N/A | 0.5% | 0.5% |
✅ WHO IS EXEMPT from VA Funding Fee:
- ✅ Veterans receiving VA disability compensation
- ✅ Veterans entitled to disability but receiving retirement pay instead
- ✅ Surviving spouses of veterans who died in service or from service-connected disabilities
- ✅ Purple Heart recipients
Exemption saves $10,750-$16,500 on typical VA loan!
🚀 Get Pre-Approved for VA Loan Today
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Get Pre-Approved Now →❓ Frequently Asked Questions
Can I use a VA loan to buy investment property?
NO. VA loans are for primary residences only. You must live in the home. EXCEPTION: Multi-unit properties (2-4 units) are allowed if you live in one unit and rent out the others.
Can I use my VA loan benefit more than once?
YES! VA loans are reusable. Your entitlement restores when you sell the home and pay off the VA loan. You can also use remaining entitlement to buy a second home while keeping the first VA loan active.
What are VA loan rates in 2026?
VA loan rates in January 2026: 5.75-6.25% for 30-year fixed. Rates are typically 0.25% LOWER than conventional due to government guarantee. 15-year VA rates: 5.25-5.75%. Rates vary by credit score and lender.
Can I refinance my VA loan?
YES! Two options: (1) VA IRRRL (Interest Rate Reduction Refinance Loan) - Streamlined refinance to lower rate, 0.5% funding fee. (2) VA Cash-Out Refinance - Take cash out of home equity, 2.15-3.3% funding fee.
Do I need an appraisal for VA loan?
YES. VA requires a VA appraisal to ensure property meets minimum property requirements (MPRs). VA appraisals are stricter than conventional - property must be safe, sanitary, and structurally sound. Cost: $500-$800.
Ready to Use Your VA Loan Benefit?
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