A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, service members, and surviving spouses. Its signature benefits are no down payment and no private mortgage insurance. Most borrowers pay a one-time funding fee of 0.5% to 3.3%, and those with full entitlement have no VA loan limit in 2026.
What Is a VA Loan?
A VA loan is a home mortgage issued by a private lender and partially guaranteed by the U.S. Department of Veterans Affairs. That government backing lets lenders offer terms most borrowers cannot get on a conventional loan — most notably no down payment and no monthly mortgage insurance.
The VA does not lend money directly. You apply with a bank, credit union, or mortgage company that participates in the program, and the VA guarantees a portion of the loan so the lender takes on less risk. To qualify you need a Certificate of Eligibility based on your military service, plus the lender's approval on your credit, income, and the home itself. For a quick definition, see our VA loan glossary entry.
What Are the Benefits of a VA Loan?
- No down payment for borrowers with full entitlement, as long as the price does not exceed the home's appraised value.
- No private mortgage insurance (PMI), which conventional loans charge whenever you put down less than 20 percent.
- Competitive interest rates, often lower than comparable conventional loans.
- Limited closing costs, because the VA caps certain fees a lender can charge you.
- No prepayment penalty if you pay the loan off early.
- A reusable benefit — your entitlement can be restored and used again on a future home.
Who Qualifies for a VA Loan?
Eligibility is based on your length and character of military service. In general, you may qualify if you are a current service member with at least 90 continuous days of active duty, a veteran who met the service requirement for your era, a National Guard or Reserve member with qualifying service, or the surviving spouse of a service member in certain situations.
Service alone is not enough — you also need a lender's approval on credit and income. For the full breakdown of service periods, credit expectations, and how to request your Certificate of Eligibility, see our VA loan requirements guide for 2026.
How Much Does a VA Loan Cost?
VA loans skip monthly mortgage insurance, but most borrowers pay a one-time VA funding fee that helps keep the program self-sustaining. For a purchase with no down payment, the fee is 2.15 percent of the loan amount for first-time use and 3.3 percent for later use; a larger down payment lowers it. Veterans receiving compensation for a service-connected disability are exempt.
The funding fee can be paid at closing or financed into the loan. See the full breakdown, including refinance rates and every exemption, in our VA funding fee guide.
Do VA Loans Have a Loan Limit?
For veterans with full entitlement, there is no VA loan limit. You can borrow as much as a lender will approve with no down payment, as long as the appraisal supports the price. County loan limits only come into play if you have partial (remaining) entitlement — for example, if you already have an active VA loan.
When limits do apply, they equal the FHFA conforming loan limit for your county, which is $832,750 across most of the country in 2026. Our VA loan limits and entitlement guide walks through both scenarios.
How to Get a VA Loan
- Request your Certificate of Eligibility (COE). Apply online at VA.gov or have your lender pull it for you.
- Check your credit and budget. The VA sets no minimum score, but most lenders look for about 580 to 620.
- Get pre-approved. Compare quotes from several VA-approved lenders so you can see real rates and closing costs.
- Find a home and make an offer. The home must be your primary residence.
- Complete the VA appraisal and underwriting. A VA appraiser confirms the value and that the home meets minimum property requirements.
- Close on the loan. Pay or finance the one-time funding fee, sign, and move in.
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Frequently Asked Questions
Is a VA loan only for first-time home buyers?
No. VA loans are available to eligible borrowers whether or not they have owned a home before. The benefit can be reused multiple times as your entitlement is restored.
Do you need a down payment for a VA loan?
Not if you have full entitlement. Most VA borrowers buy with zero down, as long as the purchase price does not exceed the home's appraised value.
Do VA loans require mortgage insurance?
No. VA loans never charge monthly private mortgage insurance. In its place, most borrowers pay a one-time VA funding fee that can be financed into the loan.
Can you use a VA loan more than once?
Yes. The VA loan is a reusable benefit. Once you pay off a VA loan and sell the home, your full entitlement can be restored for another purchase.
What credit score do you need for a VA loan?
The VA sets no minimum credit score. Lenders set their own standards, and most look for a score of about 580 to 620 along with steady income.
Who is eligible for a VA loan?
Eligible borrowers include qualifying veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses, based on service history.