VA Loan Guide: Eligibility, Lenders and How To Apply
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs (VA), and it comes with perks that can make buying a home easier and save you tens of thousands of dollars compared to a conventional loan. This means you can become a homeowner with less cash up front, have lower monthly payments and build equity faster.
You can use a VA loan to buy, refinance, build, renovate or tap your home’s equity. Learn how VA home loans work, find out who’s eligible and compare VA lenders to find your best fit.
- VA loans are available only to active-duty military members, eligible veterans and surviving spouses.
- VA loans come with low interest rates and don’t require a minimum down payment or mortgage insurance premiums.
- VA loans have some unique fees and costs, including the VA funding fee and a VA home appraisal.
How does a VA home loan work?
A VA loan is designed to make buying a home more affordable for military borrowers, and the process you’ll go through to get one is very similar to getting any other home loan. Even though this mortgage type is backed This means that the VA pays lenders a certain amount of money if the loan goes into default. This reduces the risk they’re taking on when lending to military borrowers, which allows them to offer loans to borrowers who may not qualify for a conventional loan. by the U.S. Department of Veterans Affairs (VA), you’ll apply with a private lender, like a bank or credit union, just as you would with a traditional mortgage.
- Easy qualification: VA loans generally have more lenient approval requirements than conventional loans, including no credit score or down payment minimums. Still, individual lenders can elect to be more stringent than the VA requires them to be, so be sure to shop around.
- Flexible loan limits: There’s no maximum VA loan limit for borrowers with full entitlement (you’ll have full entitlement if you’ve never used a VA loan before). With full entitlement, you can borrow as much as you can get approved for — without making a down payment.
VA loans technically don’t have loan limits — however, they do come with a limit on how much you can borrow without making a down payment. That cap is known as the conforming loan limit, and it changes depending on the home’s location. Conforming loan limits are much higher in high-cost areas.
The conforming loan limit for a single-family home is $832,750 in most areas, but for borrowers in high-cost areas the absolute highest conforming loan amount is much higher: $1,249,125 in the continental U.S. and $1,873,675 in Alaska, Hawaii, Guam and the U.S. Virgin Islands.
You can check the conforming loan limits in your area at the FHFA website.
Types of VA loans
A VA purchase loan is the VA’s standard mortgage offering. It allows eligible military members, veterans and surviving spouses to buy a home with no money down.
The VA interest rate reduction refinance loan (IRRRL) allows you to replace your current VA loan with one that features better terms. It’s also known as the VA streamline refinance, since it allows you to skip the VA appraisal and income documentation requirements of a regular refinance. Only existing VA borrowers can qualify for an IRRRL.
If you want to “cash out” some of your home equity (up to 90% of your home’s value), a VA cash-out refinance is an option. It involves replacing your existing VA mortgage with a larger loan and pocketing the cash difference. You can use the money for any purpose you choose, like home improvements or college tuition.
If you want to buy a fixer-upper, a VA renovation loan could work well for you. These loans allow you to finance both the home’s purchase price and needed repairs in the same loan. Building a home from scratch is possible with a VA construction loan.
The Native American direct loan program can help qualifying veterans and their families buy, build or improve a home on federal trust land. This loan offers many of the same benefits as other types of VA loans, including no down payment or mortgage insurance requirement.
If you want to make energy-efficient improvements to the home you’re buying (or refinancing), the VA also offers an energy-efficient mortgage program. You can generally finance up to $6,000 worth of improvements, which can include updates like installing solar panels, adding a solar water heater or installing a storm door.
A VA manufactured home loan offers military borrowers a lower-cost way to become a homeowner, but the requirements can be a bit strict. You can only get a VA loan for a manufactured home that’s permanently attached to land, meets local real estate zoning requirements and is classified as a real estate entity.
VA loan rates: Are they a good deal?
Right now, the average 30-year VA loan rate is 5.48%, while comparable conventional loan rates are averaging 6.08%. Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan type, loan program and loan term. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
VA loan rates are generally lower than conventional loan rates. Rates vary by lender and can fluctuate daily, which is why it’s important to shop around.
It’s notable that VA loans are assumable, which means that you could “take over” a VA loan when you purchase the home instead of taking out a new mortgage. It can be a huge perk: If the mortgage has a very low interest rate, you get to keep that rate. Even nonmilitary borrowers can assume a VA mortgage.
Am I eligible? VA loan eligibility rules
To qualify for a VA loan, you typically must be one of the following:
- Service member
- Veteran
- Surviving spouse
You’ll also need to meet specific time-in-service requirements based on your military status. For example, you’ll likely have a longer service time requirement if you’re in the National Guard or Reserves.
You may be eligible for a VA loan if you’ve served:
- 90 consecutive days of active duty during wartime
- 181 consecutive days of active duty during peacetime
- 6 years in the National Guard or Reserves
Those who served between Aug. 2, 1990, and the present may have different minimum requirements to meet. Learn more on the VA’s website.
To get a VA loan, you’ll need a document called a certificate of eligibility (COE). This form, issued by the VA, proves that your military service qualifies you for a VA loan. You can request your COE online, by mail or through your lender.
VA loan pros and cons
Pros
- 0% down payment. Unlike other mortgage loan types, VA loans typically don’t require a minimum down payment.
- Lower interest rates. VA loan rates are generally lower than rates on other loan types, which can help you secure lower monthly payments and save money in interest.
- No credit score minimum. The VA doesn’t set minimum credit score requirements, though many VA lenders require borrowers to have a score of 620 or higher.
- No mortgage insurance. Most low- or no-down-payment loan programs available to civilians require mortgage insurance, which covers lenders in case you default on your monthly payments. The VA doesn’t require mortgage insurance on any of its loan types.
- Closing costs capped at 1%. VA lenders can only charge 1% of your loan to cover their fees, making VA loan closing costs more affordable than other loan programs. Neither FHA loans nor conventional loans have similar caps on origination or lender fees.
- Assumability. Even nonmilitary borrowers can assume a VA loan, in effect “inheriting” the original loan’s terms from the seller.
- Special benefits for disabled veterans. Disabled veterans receive extra VA loan benefits, including no VA funding fee, possible property tax exemptions (varies by county) and access to disability housing grants.
Cons
- Service requirement. If you don’t meet the minimum service requirements discussed earlier in this guide, you won’t qualify for a VA loan.
- VA funding fee. The VA funding fee is unique to VA loans — it’s a one-time fee you’ll pay when you take out the loan. The amount ranges from 0.5% to 3.3% of the loan amount and depends on several factors, including whether you’ve taken out a VA loan in the past and your down payment amount.
- Extensive appraisal process: A VA loan appraisal is more thorough than a conventional loan appraisal. In addition to verifying that the home’s value aligns with the loan amount, the appraiser will also check that the home meets the VA’s minimum property requirements.
- Residual income requirement. In addition to debt-to-income requirements, the VA uses a residual income requirement to ensure that you have enough income to afford your loan payments.
- Stricter property requirements. Any home financed with a VA loan must be “safe, sound and sanitary,” according to extensive VA property guidelines.
VA loan requirements
Credit score
VA guidelines don’t require a minimum credit score, but many lenders set their minimums at 620. However, you may find lenders, like Rocket Mortgage and Carrington Mortgage Services, who will accept scores in the 500s.
Income
You’re probably familiar with debt-to-income (DTI) ratios, which measure the relationship between your monthly debt payments and income. The VA uses both your DTI ratio and its residual income metric to evaluate your finances. Residual income is the money left in a military borrower’s pocket each month after paying all debts and basic living expenses.
To qualify for a VA loan, you’ll generally need:
- DTI ratio: 41% maximum
- Residual income: Typically $210 to $490 per person in your household
- Employment: Two years of consistent job history, but lenders may make exceptions at their discretion
Down payment
As a VA borrower, you’re generally not required to make a down payment unless you want to. Sometimes, though, it makes good financial sense to put money down, as it can reduce your VA funding fee and total loan amount. The smaller the loan, the less you’ll pay in interest and the faster you’ll build equity.
Learn more about deciding whether to make a down payment on your VA loan.
Property type
Any home financed with a VA loan must be “safe, sound and sanitary,” according to VA property guidelines. You’re also required to live in it as your primary residence.
VA loans come with some closing costs you wouldn’t pay with another loan type, but typically the total costs are relatively comparable to what you’d pay with conventional, FHA and USDA loans.
Here’s a quick look at some of the rules and costs unique to a VA loan:
- Funding fee: The VA funding fee helps offset the cost of the VA loan program to taxpayers. It ranges from 0.5% to 3.3% of the loan amount and is typically rolled into the total loan amount, even if you don’t make a down payment. Veterans with disabilities may qualify for a funding fee exemption.
- Appraisal fee: Since VA appraisals are a bit more involved than conventional appraisals, they typically come with a slightly higher cost. VA appraisal fees vary by location and the type of property you’re financing. You can find your local average fees on VA.gov.
- Origination fee cap: The VA doesn’t allow VA-approved lenders to charge an origination fee that’s more than 1% of the loan amount.
Learn more about the different types of VA closing costs.
VA loan vs. conventional loan vs. FHA loan
| VA | Conventional | FHA | |
|---|---|---|---|
| Credit score | No set minimum | No set minimum (but traditionally 620) | 500 |
| Down payment | 0% | 3% | 3.5% |
| Closing costs | 1% | 2% to 6% | 2% to 6% |
| Loan limits |
| Conforming loan limits for 2026:
| FHA loan limits for 2025:
|
| Income |
|
|
|
| Property type | Primary residences only |
| Primary residences only |
| Unique costs and fees |
|
|
|
| Assumable? | Yes | No (unless it’s an ARM) | Yes |
How to get a VA loan
1. Shop around for a lender
You might need customer service tailored to someone deployed overseas, or simply want the most competitive interest rate offer — either way, choose a mortgage lender that caters to your needs.
2. Apply for preapproval
To get a VA loan mortgage preapproval, you’ll typically need:
- Certificate of eligibility (COE)
- DD214 (discharge or record of separation paperwork)
- Leave and earning statement (if you’re on active duty)
- Two years’ worth of W-2s
- Bank statements
- Letters of explanation for credit issues or large, unexplained bank deposits
3. Find a home and get it appraised
Once you find a home you want to buy, your lender will order your appraisal from a VA-approved inspector. Check the appraisal for any repair requirements and be prepared to negotiate with the seller if anything needs to be fixed.
4. Review closing documents and pay closing costs
The lender will issue your closing disclosure at least three business days before your closing date. That’s a great time to make sure you aren’t being charged a funding fee if you meet the exemption requirements. Once you pay your closing costs, the property title is recorded in your name and you’re officially a homeowner!
Learn more about how to apply for a VA home loan.
Explore VA home loan lenders
| Lender | User ratings | LendingTree rating | Best for | Min. credit score (VA loan) | Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | |
|---|---|---|---|---|---|---|
 |
(2620)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Expert review from LendingTree. Read Our Review | Overall VA lender | 580 | 0.73% | |
 |
(645)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Expert review from LendingTree. Read Our Review | Online experience | 580 | 1.11% | |
 |
(4018)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Expert review from LendingTree. Read Our Review | Transparency | 620 | 0.15% | |
 |
(89)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Expert review from LendingTree. Read Our Review | Bad credit VA loans | 500 | 1.46% |
Frequently asked questions
No, being the child of a qualifying veteran doesn’t mean you’re eligible for a VA loan. VA loan eligibility typically requires you to be a service member, veteran or surviving spouse.
Yes, VA loans are assumable. This means a buyer — even if they’re nonmilitary — can take over an existing VA loan from the original borrower, including the existing terms and interest rate. The buyer will still need to meet the lender’s requirements.
You can use your VA loan benefit as often as you wish, as long as you have sufficient entitlement to buy a home and are purchasing a primary residence. Your VA loan entitlement is a lifetime benefit.
No, VA loans don’t require any type of mortgage insurance. However, you’re required to pay a one-time VA funding fee, which can range from 0.5% to 3.3% of your loan amount.
It is possible to refinance a VA loan. The most common VA refinancing program is the VA IRRRL refinance, which is best if you’re looking to secure a lower rate. You can also use the VA cash-out refinance program, which can help you tap your home equity to use for emergency expenses or home repairs.
Several factors can disqualify you from getting a VA loan, including if you:
- Fail to meet the military service requirement
- Have too low a credit score or too high a DTI ratio
- Attempt to finance a property that doesn’t meet the VA’s safety standards
How we chose our picks for the best VA lenders
To determine the best VA loan lenders, we reviewed data collected from more than 30 lender reviews completed by LendingTree editorial staff for 2025.
Each lender review gives a rating between 0 and 5 stars based on several features including digital application processes, available loan products and the accessibility of product and lending information. To evaluate VA-specific factors, we awarded extra points to lenders that publish VA mortgage rates online, offer at least three VA loan types (VA purchase loans, VA streamline refinances and VA cash-out refinances) and accept credit scores at or above 620.
Our editorial team brought together all of the data about lenders in our reviews, as well as the scores awarded for VA-specific characteristics, to find the lenders with a product mix, information base and guidelines that best serve the needs of VA loan borrowers. To be considered for our “best overall” pick, lenders must have the footprint to issue mortgages in at least 35 states.
View mortgage loan offers from up to 5 lenders in minutes