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
- 0% down payment — keep your savings intact.
- No mortgage insurance — saves ~$150/mo vs FHA on a $400k loan.
- Flexible credit — many lenders approve scores as low as 580.
- Lower rates — VA averages ~0.25% below conventional.
- Reusable benefit — no lifetime cap on how many times you can use it.
- Assumable — future buyers can take over your low rate.
- Limited closing costs — sellers can pay up to 4% in concessions.
- 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 Payment | First-Time Use | Subsequent Use |
|---|---|---|
| 0% – 4.99% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.75% |
| 10% or more | 1.25% | 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
- Request your COE or have your lender retrieve it.
- Get pre-approved and compare offers.
- Find a VA-approved property and sign a purchase agreement.
- Order VA appraisal and satisfy loan conditions.
- Receive Clear to Close and sign final documents.
- 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
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