Mortgage

VA Loan A government-backed mortgage for eligible veterans with no down payment and no monthly mortgage insurance

Priya Shah By Priya Shah, Senior Mortgage Editor · Updated 2026-06-09
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A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans and service members. Its biggest advantages are no down payment and no monthly mortgage insurance, which lowers your upfront and ongoing costs compared with many conventional loans. To qualify, you must obtain a Certificate of Eligibility (COE) that confirms your service record meets VA requirements. Most borrowers pay a one-time VA funding fee rolled into the loan, though this fee is waived for some disabled veterans. The VA doesn't lend money directly; private lenders issue the loan while the VA guaranty reduces their risk. Specific rates, fees, and credit standards vary by lender and by your individual situation, so it's worth comparing offers before you commit.
Also Known As
VA mortgage VA home loan VA-guaranteed loan Department of Veterans Affairs loan
Used in Context
  1. After 10 years of service, she used a VA loan to buy her first home without saving for a down payment.
  2. His lender requested a Certificate of Eligibility before underwriting the VA loan application.
  3. A Dreamy Leads form helped match the veteran with lenders who specialize in VA loans.
Related Terms
Mortgage FHA Loan A government-backed mortgage with low down payments for buyers with moderate credit Mortgage Conventional Loan A mortgage not backed by a government agency — the most common home loan type Mortgage USDA Loan A zero-down government-backed mortgage for eligible rural and suburban buyers Mortgage Amortization The schedule that shows how each loan payment splits between principal and interest over time
Frequently Asked Questions

Do I need a down payment for a VA loan?

No. A core benefit of a VA loan is that eligible veterans and service members can finance the home with no down payment. This makes it easier to buy without years of saving. Keep in mind a one-time VA funding fee usually applies, though it may be rolled into the loan amount.

Is there mortgage insurance on a VA loan?

No. VA loans do not require monthly mortgage insurance, unlike many conventional or FHA loans. That can meaningfully lower your monthly payment. Instead, most borrowers pay a one-time VA funding fee, which is waived for some disabled veterans. Other closing costs and lender fees still apply and vary.

How do I prove I'm eligible for a VA loan?

You'll need a Certificate of Eligibility (COE) confirming your service meets VA requirements. Your lender can often request it for you, or you can obtain it through the VA directly. Specific eligibility based on service time, status, and discharge varies, so confirm your details before applying.

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