Reviewed by the Editorial Team · Updated July 10, 2026 · 6 min read
VA loans let eligible veterans and service members buy a home with zero down and no monthly mortgage insurance — backed by the Department of Veterans Affairs and often carrying the lowest average rates of any major program.
Key takeaways
VA loans let eligible veterans and service members buy with zero down and no monthly mortgage insurance, a rare combination.
A one-time funding fee replaces ongoing PMI, and it's waived entirely for borrowers receiving VA disability compensation.
Eligibility is limited to veterans, active-duty members, and qualifying Guard/Reserve, and the home must serve as a primary residence.
Average rates on VA loans tend to run below other major programs, and the entitlement can be reused for future purchases.
Min. down payment
0% — no down payment required
Min. credit score
No VA minimum; lenders typically want 620+
Key cost
One-time funding fee (waived for disability)
Best for
Eligible veterans, active-duty & Guard/Reserve
Today's VA 30-year rate6.20%avg · Optimal Blue OBMMI · as of Jun 27, 2026
VA approval rate83%560,693 loans · HMDA 2025
Estimated monthly payment at today's rate
Loan amount
Monthly P&I
$250,000
$1,531/mo
$400,000
$2,450/mo
$600,000
$3,675/mo
Principal & interest only, 30-year term at 6.20%. Taxes, insurance and any mortgage insurance are extra. See today's rates →
How a VA loan works
A VA loan is guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses. That guarantee lets qualifying borrowers buy with zero down.
Zero down payment — no cash-to-close requirement tied to price
Backed by the VA, not issued by it — you still borrow from a private lender
Requires a Certificate of Eligibility (COE) confirming your service history
No monthly mortgage insurance at any down payment amount
Because the VA guarantees a portion of the loan, lenders can skip the mortgage insurance that conventional and FHA borrowers pay every month.
How to apply for a VA loan
Applying starts with proving eligibility, not shopping rates.
Request a Certificate of Eligibility (COE) through the VA or your lender
Get pre-approved with a VA-approved lender
Find a home and sign a purchase contract
Complete a VA appraisal confirming the property meets minimum standards
Close using the VA guaranty in place of a down payment
The one-time cost that replaces insurance
VA loans skip monthly mortgage insurance, but most borrowers pay a one-time VA funding fee at closing. It's a percentage of the loan amount that varies by down payment size and whether it's a first or subsequent use of VA benefits.
FEE WAIVER
Veterans with a VA-rated service-connected disability are exempt from the funding fee entirely — a meaningful savings on a large loan.
Can be financed into the loan instead of paid in cash
Drops with a larger down payment, even though none is required
Higher on second or later VA-backed loans than on a first use
Skipped completely for disability-exempt borrowers
A VA appraisal is also required and checks minimum property requirements — a step beyond a standard conventional appraisal.
Who a VA loan fits
VA loans are restricted to eligible military borrowers and to a primary residence — you can't use one for a vacation home or a straight rental property.
Eligible veterans, active-duty service members, and qualifying Guard/Reserve
Buyers who want to skip a down payment without paying monthly insurance
Borrowers whose credit is solid but savings are thin
Anyone buying a primary residence, not an investment property
Lender experience varies more than most buyers expect — ask a loan officer how many VA loans they close each year, then run the numbers with a mortgage calculator before committing.
VA Loans: pros and cons
Pros
Zero down payment for eligible borrowers
No monthly private mortgage insurance
Below-market average interest rates
Funding fee waived for disability compensation recipients
Loan can be reused multiple times
Cons
One-time VA funding fee
Must be a primary residence
Only available to eligible veterans and service members
Appraisal and property condition rules can slow closing
Requirements at a glance
Certificate of Eligibility (COE) confirming qualifying service
No VA-set minimum credit score; most lenders look for 620+
Property must be your primary residence
VA appraisal confirming value and minimum property requirements
One-time funding fee unless exempt for service-connected disability
No — a VA loan allows 0% down for eligible borrowers, the program's biggest edge over conventional and FHA loans. Putting money down is optional; it only lowers your funding fee and monthly payment, not a qualifying requirement.
What is the VA funding fee?
It's a one-time fee that replaces monthly mortgage insurance on a VA loan, charged as a percentage of the loan amount.
The rate depends on your down payment and whether it's your first use of VA benefits, and it can be rolled into the loan. Veterans with a service-connected disability rating are exempt.
Can I use a VA loan more than once?
Yes — VA loan benefits can be reused for multiple home purchases over your lifetime, as long as you meet eligibility and have sufficient entitlement remaining.
The funding fee is typically higher on a second or later use than on your first, unless you qualify for a disability exemption.
What is a VA loan and how does it work?
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and some surviving spouses.
The VA doesn't lend the money itself — it guarantees a portion of the loan, which lets private lenders offer zero down payment and no monthly mortgage insurance. Borrowers still need a Certificate of Eligibility to apply.
What types of VA loans are available?
The VA backs several loan types: the purchase loan for buying a primary home, the Interest Rate Reduction Refinance Loan (IRRRL) for lowering your rate on an existing VA loan, and the cash-out refinance for tapping home equity.
Each has its own eligibility and funding-fee rules, though all trace back to the same VA guaranty.
What are the basic requirements for a VA loan?
Eligibility centers on service history rather than credit score or income thresholds: generally 90 days of active duty during wartime, 181 days during peacetime, or six years in the National Guard or Reserves.
Most lenders also want a credit score in the 580-620 range and a valid Certificate of Eligibility, even though the VA itself sets no minimum score.
This guide is general information, not a lending decision. Program rules and dollar limits change — verify current figures with a licensed lender and confirm licensing at NMLS Consumer Access. See all loan types.
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