VA
For eligible veterans, active duty service members, and surviving spouses. No monthly mortgage insurance.
How it works
A VA loan is guaranteed by the Department of Veterans Affairs and available to eligible veterans, active duty service members, members of the National Guard and Reserves who meet service requirements, and certain surviving spouses.
It is, on the terms that matter, the strongest loan program in the market for those who qualify. There is no monthly mortgage insurance, the qualifying guidelines are comparatively forgiving, and the VA funding fee is waived entirely for veterans receiving compensation for a service connected disability.
The part that trips people up is entitlement. Your entitlement is the amount the VA will guarantee, and it can be partially used by a prior VA loan, restored after a sale, or used more than once. Working out exactly how much entitlement you have available is the first step on any VA file, not an afterthought.
Who it fits
This program is usually the right tool when:
- Veterans and active duty service members meeting VA service requirements
- National Guard and Reserve members who have met the service threshold
- Surviving spouses who meet VA eligibility criteria
- Eligible borrowers who want to avoid monthly mortgage insurance entirely
What to watch for
The parts nobody leads with.
- The Certificate of Eligibility should be pulled early. Entitlement questions are the most common source of delay on a VA file.
- VA appraisals include Minimum Property Requirements. Certain condition issues have to be corrected before the VA will accept the property.
- The funding fee varies by service category, down payment, and whether this is a first or subsequent use. It is waived for veterans with a qualifying service connected disability rating.
Common questions
Can a VA loan be used more than once?
Yes. VA eligibility is not a one time benefit. Entitlement can be restored after a VA loan is paid off and the property sold, and in some situations a borrower can hold more than one VA loan at a time using remaining entitlement.
Is there really no down payment requirement?
For eligible borrowers with full entitlement, the VA guaranty allows financing without a down payment requirement, subject to the lender approving the file and the property appraising. Whether that is the right structure for a given borrower is a separate question from whether it is permitted.
Other programs