Advertise with us! Contact us for pricing information.Advertise with us! Contact us for pricing information.Advertise with us! Contact us for pricing information.Advertise with us! Contact us for pricing information.

VA Loan Guide 2025: Eligibility, Benefits & Zero-Down Application Steps

Everything veterans and service members need to know to buy a home with no down payment in 2025 — updated funding fee chart, loan limits, credit guidelines and a step-by-step approval roadmap.

What Is a VA Loan? 2025 Program Overview

The VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs allowing eligible borrowers to purchase a home with 0% down, competitive rates, and no private mortgage insurance (PMI). In 2025, the program remains one of the most affordable paths to homeownership, especially as conventional rates stay elevated.

Key 2025 update: The Blue Water Navy Vietnam Veterans Act removed county loan limits for most borrowers, meaning eligible buyers can now finance homes above $1M with no down payment as long as they have full entitlement.

8 Stand-Out VA Loan Benefits

  1. 0% down payment — keep your savings intact.
  2. No mortgage insurance — saves ~$150/mo vs FHA on a $400k loan.
  3. Flexible credit — many lenders approve scores as low as 580.
  4. Lower rates — VA averages ~0.25% below conventional.
  5. Reusable benefit — no lifetime cap on how many times you can use it.
  6. Assumable — future buyers can take over your low rate.
  7. Limited closing costs — sellers can pay up to 4% in concessions.
  8. Foreclosure avoidance help — dedicated VA servicing assistance.

VA Loan Eligibility & Certificate of Eligibility (COE)

You typically qualify if you meet ONE of the following service tests:

  • 90 consecutive days of active service during wartime, OR
  • 181 days of active service during peacetime, OR
  • 6 years in the National Guard or Reserves, OR
  • Spouse of a service member who died in the line of duty or from a service-connected disability.

Request your COE instantly via eBenefits or have your lender pull it during pre-approval.

2025 VA Funding Fee Chart

The one-time funding fee helps keep the program self-sustaining. It can be financed into the loan amount.

Down PaymentFirst-Time UseSubsequent Use
0% – 4.99%2.15%3.30%
5% – 9.99%1.50%1.75%
10% or more1.25%1.50%

Exemptions: Disabled veterans, Purple Heart recipients and surviving spouses typically pay $0 funding fee.

Do VA Loan Limits Still Exist?

If you have full entitlement, there is no VA-imposed loan limit. However, lenders may set internal caps (often $1.5M–$2M). If you have partial entitlement, FHFA conforming limits apply (currently $766,550 in most counties for 2025).

Current VA Rates vs Conventional (June 2025)

  • 30-Year VA Fixed: 5.95%
  • 30-Year Conventional Fixed: 6.25%
  • 30-Year FHA Fixed: 6.10%

Rates vary by lender and borrower profile. Always compare Loan Estimates from multiple lenders.

How to Apply: 6 Simple Steps

  1. Request your COE or have your lender retrieve it.
  2. Get pre-approved and compare offers.
  3. Find a VA-approved property and sign a purchase agreement.
  4. Order VA appraisal and satisfy loan conditions.
  5. Receive Clear to Close and sign final documents.
  6. Get the keys — and enjoy zero-down homeownership!

VA IRRRL: Streamline Refinance for Lower Rates

If you currently have a VA loan, the Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance with no appraisal, no income verification and little to no out-of-pocket cost. You can even roll closing costs into the new loan.

Frequently Asked Questions

Can I use a VA loan more than once?

Yes — you can restore entitlement after selling or pay down the existing loan to reuse remaining entitlement.

Can I buy a duplex?

Yes, up to 4 units if you occupy one as your primary residence.

Is there a minimum credit score?

The VA sets no minimum; most lenders require 580–620.

Additional Resources

Stay Updated with Mortgage News

Subscribe to our newsletter to receive the latest mortgage news, tips, and exclusive guides directly to your inbox.

We respect your privacy. Unsubscribe at any time.