The complete 2026 guide to VA-guaranteed mortgages — how they work, who qualifies, what they cost, and how approval actually happens. Written by licensed loan officers and sourced directly from VA.gov and the VA Lenders Handbook M26-7.
No-obligation VA pre-qualification review.
VA loans are mortgages guaranteed by the Department of Veterans Affairs and made by private lenders, with $0 down and no mortgage insurance. The lineup covers the VA Purchase Loan, the Renovation loan, the IRRRL streamline refinance, Cash-Out refinance up to 90–100% LTV, and the Native American Direct Loan (NADL) for trust-land properties.
Pick the program that matches your goal — buying, renovating, lowering your rate, or pulling cash out — and the rest of the file follows the same VA rulebook.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 31, 2026 against the VA Lenders Handbook (M26-7)
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Pricing shown is based on the scenario entered and wholesale pricing available at the time of the search. It is not a rate lock, loan approval, commitment to lend, or guarantee of terms. Rates and pricing change frequently and expire. Your actual rate, APR, payment, and costs depend on a complete application, verified credit and income, property and appraisal review, and lender underwriting approval. Binding figures appear on your Loan Estimate.
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SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
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AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and made by a private, VA lender partner — the VA itself does not lend the money, except through the Native American Direct Loan. The guaranty lets lenders finance 100% of the purchase price with $0 down and no monthly mortgage insurance, ever. In place of mortgage insurance, most borrowers pay a one-time VA funding fee, which can be rolled into the loan. Veterans with full entitlement face no VA-imposed loan limit.
No down payment saved up yet: VA almost always wins — conventional loans require at least 3% down and PMI below 20% equity.
Credit in the 580–660 range: VA's lack of a VA-set minimum and no mortgage insurance usually make it the cheaper path. Run the numbers.
Buying a second home or investment property: VA does not apply — occupancy as a primary residence is required.
Obtain your COE instantly on VA.gov, through your lender via WebLGY, or by mailing VA Form 26-1880 with your DD-214 or Statement of Service.
We review income, residual income and assets with you. Lenders may review credit as part of underwriting, and requirements vary by lender.
A documented pre-approval can strengthen your offer. Most existing 1-to-4 unit homes, VA-approved condos and new construction qualify.
We collect pay stubs, W-2s or LES, tax returns, and bank statements. Underwriting checks credit, DTI, and VA residual income.
A VA-assigned appraiser values the home and confirms it meets Minimum Property Requirements (MPRs), producing the Notice of Value (NOV).
The underwriter signs off, we issue final disclosures, and you sign at closing — no down payment and no mortgage insurance on the note.
The VA funding fee is a one-time charge paid to the Department of Veterans Affairs that keeps the program self-sustaining at no cost to taxpayers. It replaces monthly mortgage insurance entirely — there is never a recurring MIP or PMI payment on a VA loan. On a purchase loan the fee is 2.15% of the loan amount with less than 5% down on a first use, dropping to 1.25% with 10% or more down. An IRRRL is a flat 0.50%, and a cash-out refinance is 2.15% on first use. Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses pay $0. The fee can be financed into the loan rather than paid at closing.
See the full breakdown, including every exemption, on the funding fee calculator.
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.
More answers in the full VA FAQ library, or compare programs on the VA loan programs page and check your 2026 VA loan requirements.
Start a VA pre-qualification with a licensed loan originator. Licensed in Colorado and Florida.
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Related VA topics for this page — tap any question to jump straight to the answer.
The VA funding fee schedule sets the one-time cost that replaces mortgage insurance on every VA loan. Here's the current chart, who's exempt, and how it's financed.
A VA loan can finance up to a 4-unit property with $0 down, as long as you live in one unit. Rent from the other units can even help you qualify.
Veterans receiving VA disability compensation pay $0 funding fee — often the single biggest savings in the entire loan. Here's how the exemption is proven and refunded.
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