$0Down payment required on most VA purchase loans
2.15%First-use funding fee with under 5% down
560,000+VA loans made in 2025
$832,7502026 baseline county limit for partial entitlement
Key takeaway: A VA home loan is a mortgage from a private lender that the Department of Veterans Affairs partly guarantees. Eligible service members, veterans and some surviving spouses can buy with no down payment and no monthly mortgage insurance. In exchange, most borrowers pay a one-time funding fee of 1.25%–3.3% of the loan. Lenders set the rate, so shopping around matters as much as it does for any mortgage.
How we put this guide together: We used VA.gov program pages, VA circulars, Federal Housing Finance Agency loan limits, VA News consumer warnings and published lender data from NerdWallet and federal mortgage-disclosure (HMDA) data. Figures were checked in October 2026. Fees and limits are set by law and regulation and can change, and rates change daily. See our advertiser disclosure.

How a VA loan works

The VA doesn’t usually lend money itself. It guarantees part of a loan made by a bank, credit union or mortgage company. That guarantee is why lenders can skip the down payment and private mortgage insurance that conventional and FHA loans usually need. More than 560,000 VA loans were made in 2025.

The home must be your primary residence. VA loans can be used to buy or build a home and to refinance, either through a cash-out refinance or the streamlined Interest Rate Reduction Refinance Loan (IRRRL) for existing VA borrowers.

Who qualifies

  • Active-duty service members: at least 90 continuous days of service.
  • Veterans who served after August 2, 1990: generally 24 continuous months, or the full period you were called up (at least 90 days). Shorter service can qualify if you were discharged for a service-connected disability.
  • National Guard and Reserve members: 90 days of non-training active duty under Title 10, or six creditable years.
  • Surviving spouses: in some cases, such as those receiving certain Dependency and Indemnity Compensation.

You prove eligibility with a Certificate of Eligibility (COE), which you can request on VA.gov or have your lender pull. You also need to meet the lender’s credit and income standards. The VA sets no minimum credit score, but most lenders set their own, usually between 500 and 620. Our credit score ranges guide explains where you stand.

Key 2026 numbers

ItemAmount
Down payment (if price doesn’t exceed appraised value)$0
Funding fee, purchase, under 5% down2.15% first use; 3.3% after
Funding fee, 5% or more down1.5%
Funding fee, 10% or more down1.25%
Funding fee, IRRRL0.5%
Loan limit with full entitlementNone set by VA
County limit with partial entitlement$832,750 in most areas; up to $1,249,125 in high-cost areas

Source: VA.gov funding fee and loan limit pages; FHFA 2026 conforming loan limits. Checked October 2026.

Veterans receiving VA disability compensation, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients are exempt from the funding fee. On a $350,000 purchase with no down payment, the fee is $7,525 the first time and $11,550 on a later use. It can be financed into the loan.

“No limit” doesn’t mean unlimited borrowing. Your lender still decides how much you can afford, and the VA adds a residual income test: money left each month after major expenses. For a family of four, the guideline ranges from $1,003 in the Midwest and South to $1,117 in the West.

How to choose a lender

The VA sets the funding fee, but lenders set the interest rate, discount points and most other closing costs. VA News urges borrowers to shop around: get Loan Estimates from several lenders and compare the rate, points and total lender fees. Some lenders have specific limits, such as requiring membership first or not offering VA cash-out refinances. Our VA loan lenders guide compares the highest-volume lenders and their published credit minimums, and our mortgage lenders guide covers conventional and FHA options to compare against.

If you have savings, run the numbers both ways: putting 10% down cuts the funding fee to 1.25%, which on a $350,000 home means $3,937.50 on a $315,000 loan instead of $7,525 with nothing down.

Common mistakes

  • Assuming the seller can’t help. Sellers can pay normal closing costs, plus concessions of up to 4% of the home’s reasonable value.
  • Refinancing too often. VA News warns that each refinance costs thousands and restarts your 30-year clock. For an IRRRL, the VA requires that fees be recouped within 36 months and, for fixed-to-fixed loans, that the rate drop at least 0.5 percentage point.
  • Taking big cash-out loans. The VA’s example: turning a $300,000 loan into $400,000 can mean well over $100,000 more interest over 30 years.
  • Answering unsolicited refinance offers. The VA warns about mailers promising both cash and a lower payment; federal regulators have acted against deceptive VA refinance ads.

Free help

For questions about your VA home loan benefit, call the VA at 1-877-827-3702. You can report suspicious lenders to the VA, the Consumer Financial Protection Bureau or the Office of the Comptroller of the Currency.

Guides in this section

Best VA Loan Lenders and How VA Loans Work in 2026High-volume VA lenders, their credit minimums and refinance optionsBest Mortgage Lenders and Loans: How to Compare Your OptionsConventional, FHA and jumbo lenders to compare against a VA loanCredit Score Ranges ExplainedCredit score bands and how they affect your mortgage rateBest Home Insurance Companies 2026Homeowners insurance you'll need before closingHomeowners Insurance Before You Buy: What Every Buyer Should Check FirstInsurance checks every home buyer should make first

Frequently asked questions

Do VA loans require a down payment?

Usually no. VA.gov says you don't need a down payment as long as the sales price isn't higher than the appraised value. Your lender may still have its own requirements.

How much is the VA funding fee in 2026?

For a purchase with less than 5% down, it is 2.15% of the loan for first-time use and 3.3% after that. It falls to 1.5% with 5% down and 1.25% with 10% down. An IRRRL costs 0.5%. Veterans receiving VA disability compensation are exempt.

Is there a VA loan limit?

Not if you have full entitlement: the VA sets no limit, though your lender decides how much you can afford. If you have an active VA loan or unrestored entitlement, county limits apply, starting at $832,750 in most areas in 2026.

What credit score do I need for a VA loan?

The VA has no minimum credit score. Lenders set their own, and most reported minimums range from 500 to 620. You'll also need to meet the VA's residual income guideline.

Can I use a VA loan more than once?

Yes. You can use the benefit again, though the funding fee for later uses with less than 5% down is 3.3% instead of 2.15%, unless you are exempt.

Sources

Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.