$0 down. No PMI. The benefit you've already earned.

Why it matters

A VA-backed loan isn't issued by the VA — it's issued by a private lender, with the VA guaranteeing 25% of the loan amount. That guarantee is why lenders skip the down payment and PMI, often offer below-market rates, and have lighter credit thresholds than conventional loans.

The benefits at a glance

• $0 down payment in most cases — no county loan limits since 2020 for full-entitlement vets
• No PMI — saves you ~0.5–1% of the loan annually for the life of the loan
• Competitive interest rates — usually 0.25–0.5% lower than conventional
• Limited closing costs — VA caps what you can be charged; sellers can pay them
• Reusable for life — pay it off, sell, and use it again
• Funding fee waived if 10%+ service-connected disabled, or for surviving spouses receiving DIC
• Easier credit — most lenders accept FICO scores in the 580-620 range

Who qualifies

• Veterans with 90 days continuous service in wartime, or 181 days peacetime, or 6 years in Reserves/Guard with honorable discharge (varies)
• Active duty after 90 days of continuous service
• Surviving spouses of service members who died in the line of duty or from service-connected conditions, or who were 100% P&T disabled

Even an OTH discharge may qualify — request a Character of Discharge determination from the VA. See discharge upgrade options.

Step-by-step

1. Get your Certificate of Eligibility (COE). Request through VA.gov, your lender, or by mailing VA Form 26-1880. Most lenders pull it instantly.
2. Pre-approval from a VA-savvy lender. Not all lenders have VA expertise — ask how many VA loans they close per year. Veterans United, Navy Federal, USAA, and Penny Mac are common starting points but rates vary; shop 3-5 lenders.
3. Find a VA-friendly real estate agent. Some agents discriminate against VA buyers because they assume slow closings or seller-paid costs. Get one who has done it before.
4. Make an offer. Houses must pass the VA appraisal — which checks Minimum Property Requirements (no lead paint, working systems, etc.).
5. VA appraisal happens. Lower than expected? You can re-negotiate, request a Reconsideration of Value (ROV), or pay the difference in cash.
6. Close. Most VA loans close in 30-45 days, on par with conventional.

The funding fee — what it is, who pays

The funding fee is the VA's way of keeping the program self-funded. It's a one-time fee rolled into the loan (you don't pay cash at close).

• First-time use, $0 down: 2.15% regular, 2.40% Reserves/Guard
• Subsequent use, $0 down: 3.30%
• 5% down: drops to ~1.5–1.75%
• 10%+ down: drops further
• Waived for 10%+ service-connected disabled veterans and surviving spouses receiving DIC

Common myths debunked

• "VA loans take forever to close." Untrue — average 30-45 days, same as conventional.
• "You can only buy single-family homes." 1-4 unit properties qualify if you live in one. Condos must be VA-approved.
• "You can't refinance a VA loan." The IRRRL (Interest Rate Reduction Refinance Loan) and Cash-Out refinance are core features.
• "You only get one VA loan." Reusable for life. Multiple at once is even possible with restored entitlement.
• "You can't buy a fixer-upper." The VA Renovation Loan exists for moderate rehab; for major rehab, look at FHA 203(k) or conventional.

The IRRRL refinance — your secret weapon

If rates drop, the Interest Rate Reduction Refinance Loan lets you refinance with minimal paperwork — usually no appraisal, no income verification, low cost. Best move when rates fall significantly below your current rate.

State home loan programs that stack on top

California (CalVet) and Oregon (ODVA) run their own state-level direct VA-style loan programs. Texas (VLB) offers below-market state loans for land purchases. Many other states offer first-time-homebuyer assistance for veterans on top of the federal VA loan.

If you've defaulted on a VA loan before

Lost a VA-backed home? You may still qualify for a new one. Restoration of entitlement is possible after foreclosure (with conditions) and especially common for surviving spouses or service members who lost the home due to deployment-related hardship.

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