Every VA loan question, answered.

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and originated by private, VA lender partners. The VA doesn't lend the money (except for the Native American Direct Loan) — its guaranty lets lenders offer $0 down and no monthly mortgage insurance to eligible veterans, active-duty service members, National Guard/Reserve members, and surviving spouses. Source: va.gov/housing-assistance/home-loans.

No. Eligible veterans with full entitlement can finance 100% of the purchase price — $0 down — up to the amount a lender is willing to approve. A down payment is never required by the VA itself, though a veteran can choose to put money down to reduce the funding fee or monthly payment.

No. VA loans never carry monthly mortgage insurance or PMI — that's the program's single biggest cost advantage over FHA and conventional financing. Instead, most veterans pay a one-time VA funding fee, which can be financed into the loan.

A one-time fee paid to the VA that helps keep the program running at no cost to taxpayers. For a first-time purchase loan it's 2.15% of the loan amount with less than 5% down, 1.50% with 5–9.99% down, and 1.25% with 10% or more down; subsequent use with less than 5% down is 3.30%. Cash-out refinances are 2.15% (first use) or 3.30% (subsequent use); an IRRRL is a flat 0.50%. Veterans receiving VA compensation for a service-connected disability, Purple Heart recipients on active duty, and certain surviving spouses are exempt. Source: va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs.

Veterans receiving (or entitled to receive) VA compensation for a service-connected disability, veterans rated eligible for compensation from a pre-discharge exam, active-duty Purple Heart recipients, and surviving spouses of veterans who died in service or from a service-connected disability (or who receive DIC) pay no funding fee. Your Certificate of Eligibility will show the exemption; if a disability rating is granted after closing, the fee may be refunded.

Since the Blue Water Navy Vietnam Veterans Act took effect January 1, 2020, there is no VA loan limit for a veteran with full entitlement — you can borrow whatever a lender approves with $0 down. Limits only apply to veterans with reduced/partial entitlement (because of an existing VA loan or a prior default), and those limits match the FHFA conforming loan limits: $832,750 in most counties for 2026, up to a $1,249,125 ceiling in high-cost areas. Source: va.gov/housing-assistance/home-loans/loan-limits.

The VA sets no minimum credit score — that's decided by each lender. Lenders review the complete loan profile, including residual income, recent payment history, debt obligations, and the automated underwriting result.

Residual income is the amount of money left over each month after the mortgage payment, taxes, insurance, other debts, and estimated maintenance and utility costs. It's the VA's signature underwriting tool and varies by region (Northeast, Midwest, South, West), family size, and loan amount. Strong residual income can qualify a veteran even with a debt-to-income ratio above the 41% guideline, since the VA treats 41% as a benchmark, not a hard cap. Source: VA Lenders Handbook M26-7, Chapter 4.

You can get your COE instantly online at va.gov, ask your lender to pull it through WebLGY, or mail VA Form 26-1880. Veterans typically need a DD-214; active-duty service members need a Statement of Service; National Guard/Reserve members need an NGB-22 or points statements; surviving spouses need VA Form 26-1817 (and often a DIC-based VA Form 21P-534EZ).

The Interest Rate Reduction Refinance Loan refinances an existing VA loan into a new VA loan at a lower rate or from an ARM to a fixed rate. VA generally does not require a new appraisal or traditional income review, although lender overlays and credit-qualifying cases may. It carries a 0.50% funding fee and must satisfy VA seasoning, net-tangible-benefit, rate-reduction, and 36-month recoupment rules.

A VA cash-out refinance replaces any existing mortgage — VA or non-VA — with a new VA loan, letting you pull cash out of your equity. The VA allows up to 100% loan-to-value, though most lenders cap it around 90%. Unlike an IRRRL, it requires a full appraisal, income documentation, and a credit check, plus a net tangible benefit test and a VA loan comparison disclosure.

Yes. Entitlement can be restored once a prior VA loan is paid in full and the property is sold, and a one-time restoration is available even if you keep the home. Veterans can also hold two VA loans simultaneously using remaining entitlement — common during a PCS move — as long as enough entitlement remains to support the new loan.

Yes. A qualified buyer — veteran or not — can assume a VA loan and its interest rate with lender and VA approval, which is a real advantage when your rate is well below market. Note that the seller's entitlement stays tied up unless the buyer is also a veteran who substitutes their own entitlement.

A VA-assigned appraiser establishes market value and checks the home against the VA's Minimum Property Requirements (MPRs): safe, sanitary, structurally sound housing with working heat, safe water and sewage disposal, an adequate roof, no exposed wiring, safe access, and no wood-destroying-insect damage. The result is a Notice of Value (NOV). If the value looks like it may come in low, the lender can request Tidewater; after the NOV is issued, a Reconsideration of Value (ROV) is the formal appeal.

The NADL is the one VA product where the VA itself is the direct lender. It helps Native American veterans (or veterans married to one) buy, build, or improve a home on federal trust land, and requires a Memorandum of Understanding between the VA and the tribal government. It comes with $0 down, no monthly mortgage insurance, and a 1.25% funding fee (0.50% for an IRRRL).