The VA mortgage loans offers amazing benefits for military home buyers seeking to buy a home with affordable financing and no down-payment. If you’re a military veteran or active-duty military, and you want to buy a home, consider the VA mortgage program that requires no money down and no mortgage insurance. For many active military and retired military, VA mortgages are the best financing choice to buy a home in 2026. Let’s take a closer look at these excellent loans below.
VA Loans Are Backed by The US Government
VA house loans are guaranteed by the US Department of Veteran Affairs and are issued by private mortgage lenders such as a credit union mortgage company or bank. A VA home loan can make it easier to buy a home because down payments aren’t required, and credit scores are typically lower to qualify.
The VA loan guarantee means that the US government will pay back the lender for most of the costs of a loan if you default. This ensures that the risk for the VA lender is less, so this makes it possible for them to offer lower interest rates and more flexible lending criteria to VA loan applicants.
People who are eligible for VA mortgage loans should look at them closely because you can rarely get as good of a deal in any other government program.
VA Loan Eligibility
You may be eligible for a VA loan if you’re on active duty in the military or a veteran who meets the required length of service standards. You also may qualify if you are a surviving partner, husband, or wife of a service member who passed away while on active duty.
Also, you need to meet the mortgage lender’s requirements for income and credit. There isn’t a minimum credit score to qualify for a VA loan; the mortgage lenders can set their own standards. Some lenders may have a 620 or 640 credit score, but if your score is too low, keep shopping.
The lender also will look at your debts and income to determine if you will be able to repay the mortgage. The home that you want to buy also needs to meet minimum standards set by the VA, as well as local building codes.
To be eligible for a VA mortgage:
Military Service Requirements: You must meet specific service requirements, which vary depending on the era in which you served. Generally, veterans with at least 90 consecutive days of active duty during wartime or 181 days during peacetime are eligible. National Guard and Reserve members may also qualify after six years of service or if called to active duty.
Character of Service: Veterans must have been discharged under conditions other than dishonorable. Individuals with dishonorable discharges are not eligible for VA mortgage loans in most cases.
Eligibility for Specific Groups: Certain groups, such as surviving spouses of veterans who died in service or as a result of service-connected disabilities, may also be eligible for VA mortgage loans. The VA provides specific guidelines for these cases. Find loans for disabled Vets.
Obtaining a Certificate of Eligibility (COE): To apply for a VA mortgage loan, you need a Certificate of Eligibility, also known as the COE. This document verifies your military service and confirms your eligibility. You can apply for a COE online, through your VA mortgage lender, or by mail using VA Form 26-1880.
Occupancy Requirement: You must intend to live in the home you are purchasing with a VA mortgage loan as your primary residence. This means you can’t use VA financing to buy investment properties or vacation homes.
Credit and Income Criteria: While the VA does not set a minimum credit score requirement, lenders may have their own standards. Additionally, your income should be sufficient to cover the monthly mortgage payments and other living expenses.
VA Loan Limit
One factor to consider with VA loans is the VA loan limit. This is the maximum amount you’re allowed to borrow from a mortgage lender without needing to come up with a down payment. As of 2024, the VA loan limit for most borrowers was $548,250 for the typical US county. But it can be as high as $822,375 in higher-cost areas such as parts of California.
VA Loan Advantages
If you’re a veteran, you should consider trying to get a VA loan because there are many advantages.
The first advantage is no mortgage insurance or down-payment is required. Most other loan types including FHA loans require mortgage insurance, and you usually need to make at least a 3% or 5% down payment. VA loans are one of the few loans left in the US that you don’t need to make a down payment. The VA guarantees zero-down home loans for veterans and active military borrowers.
It could be beneficial for you to come up with a down payment, so you have a lower mortgage rate, but you don’t have to for a VA loan.
The next advantage is interest rates for VA loans are often lower than market rates. This is because VA loans are seen as a significant benefit for veterans. So, the VA sets the mortgage rates well below market rates and they’re even better than FHA mortgage rates.
Closing costs for VA loans are also lower than most other loans. The origination fee for the mortgage lender can be no more than 1% of the loan amount. Lenders also aren’t allowed to charge some of the closing costs that they do for FHA and conventional loans.
VA Loan Considerations
Of course, any loan has advantages and disadvantages. One of the considerations for VA loans is the VA loan funding fee. You don’t have to pay mortgage insurance, but you do have to pay an upfront funding fee ranging from 1.4% to 3.6% of the loan. It depends on whether it’s your first VA loan and if you made a down payment.
Also, you can only use a VA loan for your primary residence; you cannot use your VA entitlement to buy an investment property or a second home.
Also, not every home is going to be eligible for a VA mortgage loan. The appraiser from VA will look at the home and determine if it meets its minimum standards. Not every fixer-upper is going to meet the VA loan requirements.
One thing that many people don’t know is that getting a VA loan isn’t something you only can do once. You’re only allowed to use your VA entitlement one at a time, but you can get more than one loan in your life.
For example, if you get a VA mortgage and then you sell the house, you can get another VA loan. If you’re interested in applying for a VA loan.
VA Mortgage for Home Buying FAQ
Can you use a VA loan to buy a second home or investment property?
No, VA loans require borrowers to occupy the property as their primary residence, prohibiting second homes or investment properties. You must sign an occupancy certification at closing and move in within 60 days, maintaining primary residence status for at least 12 months. However, veterans can use remaining VA loan entitlement to purchase a second primary residence when relocating for military orders, employment, or family circumstances while retaining the first VA-financed home as a rental. Multi-unit properties (2-4 units) are allowed if you occupy one unit as primary residence while renting others—a popular house-hacking strategy. Once the initial 12-month occupancy requirement is met, you can rent the property and use remaining entitlement for another primary home purchase, though you cannot have two concurrent VA loans on non-primary residences.
What is VA loan entitlement and how does it affect how much you can borrow?
VA loan entitlement is the amount the VA guarantees to lenders if borrowers default, determining maximum loan amounts without down payments. Full entitlement in 2026 allows veterans to borrow up to local conforming loan limits ($806,500 in most areas, $1,209,750 in high-cost counties) with 0% down. Veterans with remaining entitlement after previous VA loans can calculate available amount using the formula: $806,500 minus outstanding VA loan balance equals remaining entitlement. Partial entitlement requires down payments covering 25% of amounts exceeding remaining entitlement—example: $900,000 purchase with $400,000 remaining entitlement requires $125,000 down payment [($900,000 – $400,000) × 0.25]. Entitlement restores fully after selling VA-financed homes and paying off loans, or through one-time restoration while keeping the property if sufficient entitlement remains.
Can you buy a fixer-upper with a VA loan?
Yes, but VA loans require properties meet Minimum Property Requirements (MPRs) ensuring homes are safe, sound, and sanitary before closing—limiting fixer-upper purchases. Minor cosmetic issues like outdated finishes, worn carpets, or painting needs are acceptable, but major problems trigger required repairs: structural damage, roof leaks, non-functioning HVAC systems, electrical/plumbing deficiencies, peeling lead paint, wood-destroying insects, or health/safety hazards. Sellers must complete repairs before closing, or veterans can use VA renovation loans: the VA Rehabilitation Loan combines purchase price and renovation costs (up to $806,500 total) in one mortgage with 0% down, or the Energy Efficient Mortgage adds $3,000-6,000 for energy improvements. Severe fixer-uppers requiring extensive rehabilitation don’t qualify—consider conventional 203(k) renovation loans or purchase with alternative financing, renovate, then refinance to VA.
How does the VA funding fee work and can it be waived?
The VA funding fee is a one-time charge financing the VA loan program, ranging from 1.25-3.3% of loan amount depending on down payment, military category, and loan usage. First-time VA buyers pay 2.15% with 0% down ($6,450 on $300,000), 1.5% with 5-9% down, or 1.25% with 10%+ down. Subsequent use increases fees to 3.3% with 0% down. Veterans receiving VA disability compensation (even 10%), Purple Heart recipients, surviving spouses, and those receiving/entitled to disability pay are exempt from funding fees—saving $6,450-9,900 on typical purchases. The fee can be financed into the loan rather than paid at closing, though this increases monthly payments. Active-duty personnel pay lower fees than Reserves/National Guard (2.15% versus 2.4% first-time use). Refinancing carries separate funding fees: 2.15-2.4% for cash-out, 0.5% for streamline refinances.
Can you buy a manufactured or mobile home with a VA loan?
Yes, VA loans finance manufactured homes meeting specific requirements: built after June 15, 1976 (HUD certification), affixed to permanent foundation on land you own or lease long-term (35+ years), classified as real property with title merged to land, minimum 400 square feet, and complying with local zoning. VA allows up to 100% financing for manufactured home and land purchases combined, though mobile homes in parks without land ownership don’t qualify for 0% down—these require 5-10% down payments. Manufactured homes typically appraise 10-20% lower than site-built homes, limiting loan amounts even with full entitlement. Interest rates run 0.25-0.75% higher than conventional VA loans due to perceived depreciation risk. Popular in rural areas and high-cost markets, manufactured home VA loans offer affordable homeownership, though fewer lenders participate requiring specific VA manufactured home experience.
How to Get a Buy a Home with a VA Mortgage Today
There are a few things you need to do to get a VA loan. First, you need to get your certificate of eligibility from the military service branch in which you served. The VA lender can get this document for you if you like, and you only need to have it at some point before you close.
You also need to shop around for the right lender. While VA loan standards are usually consistent, some lenders can offer better terms than others. It always pays to look around. You can find lenders who offer the same program, but the interest rate or DTI could be different.
The bottom line is you can do well as an active military member or a retired veteran if you choose VA loans. The closing costs down payment and interest rates are lower than other types of loans, and it could really be a good deal for you. Get the latest info on Military loans for first time home buyers.
VA Related News
Are VA loans taking too long to process? – New York Times
What Military Spouses Need to Know Prior to the Home Buying Process – Military.com
About Bryan Dornan
Bryan Dornan is a marketing leader and financial journalist who currently serves as Chief Editor of RefiGuide.org. Bryan has founded several mortgage and digital marketing companies and has worked as a loan officer, mortgage broker and chief marketing officer in the industry for nearly 30 years and has a wealth of experience in providing mortgage clients with the highest level of service in the industry. Bryan's continual focus is to educate homeowners how to leverage home equity while also promoting affordable home-ownership to consumers like you across the United States. He also writes for RealtyTimes, Patch, Buzzfeed, Medium and other national publications. Find him on Twitter, Muckrack, and Linkedin
More articles by Bryan Dornan