Who qualifies and how to get your COE
To get a VA-backed loan, you need a Certificate of Eligibility (COE) and must meet the VA's and your lender's credit and income standards. You also have to live in the home. Minimum service requirements include:
| Service status | Minimum service |
|---|---|
| Active duty | At least 90 continuous days |
| Veterans who served since Aug. 2, 1990 | 24 continuous months, or the full period you were called to active duty (at least 90 days) |
| National Guard and Reserve | 90 days of non-training active duty, or 6 creditable years |
| Surviving spouses | May qualify if receiving or eligible for certain Dependency and Indemnity Compensation, or if the service member is missing in action or a prisoner of war |
Source: VA, Eligibility for VA home loan programs. Shorter service can qualify after a discharge for a service-connected disability and some other reasons.
You can request your COE through VA.gov, or your lender can get it electronically through the VA's portal. Your COE shows your basic entitlement, which lenders use to work out how much the VA will guarantee.
No down payment and no PMI
The VA guarantees part of the loan, so lenders don't require mortgage insurance. With a conventional loan, putting less than 20% down usually means private mortgage insurance (PMI). An FHA loan charges mortgage insurance premiums. A VA purchase loan has neither. You can buy with no down payment as long as the price isn't higher than the appraised value.
VA rules also limit what the seller can contribute. A seller can pay your normal closing costs, but other concessions are capped at 4% of the home's reasonable value. On a purchase, the funding fee is the only cost you can roll into the loan. Other fees are paid at closing, by you or the seller.
The 2026 VA funding fee
The funding fee replaces mortgage insurance. It's a one-time charge based on the loan amount, how much you put down, and whether you've used the benefit before.
| Loan type and down payment | First use | After first use |
|---|---|---|
| Purchase, less than 5% down | 2.15% | 3.3% |
| Purchase, 5% to under 10% down | 1.5% | 1.5% |
| Purchase, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| Interest rate reduction refinance (IRRRL) | 0.5% | 0.5% |
| Loan assumption | 0.5% | 0.5% |
Source: VA, VA funding fee and loan closing costs (rates effective April 7, 2023; page checked October 2026).
Example: On a $350,000 home with no down payment, a first-time user pays 2.15%, or $7,525. With 10% down, the loan is $315,000 and the fee drops to 1.25%, or $3,937.50. A repeat user with no down payment would pay 3.3%, or $11,550.
You don't pay the fee if you:
- receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead;
- are a surviving spouse receiving Dependency and Indemnity Compensation;
- are a service member with a proposed or memorandum disability rating issued before closing; or
- are on active duty and show proof of a Purple Heart on or before closing.
If you're later awarded compensation retroactive to before your closing date, you may be able to get the fee refunded.
Loan limits and entitlement
If you have full entitlement, there is no VA loan limit. You can borrow as much as a lender approves based on your income, debts and credit, as long as the appraisal supports the price.
If part of your entitlement is tied up in an existing VA loan, county limits come into play. VA limits match the Federal Housing Finance Agency's conforming limits: $832,750 for a one-unit home in most counties in 2026, and up to $1,249,125 in high-cost areas. The VA's own example: in a county with a $900,000 limit, 25% is $225,000. Subtract $50,000 of entitlement already used and you have $175,000 left. Lenders typically want your entitlement and down payment to cover 25% of the loan, so the most you'd likely borrow with no money down is $700,000.
Residual income: the VA's extra affordability test
Besides your debt-to-income ratio (DTI), VA underwriting checks residual income. That's the money left each month after your mortgage payment, taxes, debts and estimated living costs. The required amount depends on your family size and region.
| Family size (loans of $80,000+) | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $450 | $441 | $441 | $491 |
| 2 | $755 | $738 | $738 | $823 |
| 3 | $909 | $889 | $889 | $990 |
| 4 | $1,025 | $1,003 | $1,003 | $1,117 |
Source: 38 CFR 36.4340, as compiled by VA Loan Network (updated Sept. 30, 2026). Monthly minimums.
The VA's DTI guideline is 41%. You can go above it, but the lender then needs residual income at least 20% above the table amount, or must justify the loan in writing. That's why VA lenders can approve some borrowers with high DTIs, as long as there's enough money left over each month.
Credit scores: The VA doesn't set a minimum score. Lenders do. NerdWallet found most VA lenders' minimums fall between 500 and 620. See where you stand with our guide to credit score ranges.
High-volume VA lenders
A handful of lenders make a large share of VA loans. Volume doesn't guarantee the best rate for you, but these lenders process VA loans every day. This is not a ranking.
| Lender | VA loans in 2025 (HMDA) | Published facts |
|---|---|---|
| Veterans United (Mortgage Research Center) | 76,057 | VA-focused lender; 620 minimum score; offers VA streamline refinances and energy-efficient mortgages |
| United Wholesale Mortgage | 71,372 | Wholesale lender; you apply through a mortgage broker |
| Freedom Mortgage | 34,772 | Third-largest VA lender by 2025 count |
| Rocket Mortgage | 33,885 | Fourth-largest VA lender by 2025 count |
| Navy Federal Credit Union | 19,100 | Credit union membership required before you apply |
| Pennymac | 16,581 | Sixth-largest VA lender by 2025 count |
Source: 2025 HMDA data via Polygon Research, as published by Mortgage Research Center (Veterans United's parent) in April 2026; NerdWallet, Best VA Loan Lenders of October 2026. More than 560,000 VA loans were made in 2025.
Other names that come up often: USAA (620 minimum; membership limited to military members and eligible family), loanDepot (520 minimum, the lowest NerdWallet listed), PenFed (620 minimum; lends in Guam and Puerto Rico) and Chase (620 minimum, but no VA cash-out refinances). For lenders across all loan types, see our best mortgage lenders guide.
Refinancing with an IRRRL
The Interest Rate Reduction Refinance Loan, often called a VA streamline, swaps an existing VA loan for one with a lower rate, or moves you from an adjustable rate to a fixed rate. You must already have a VA loan and certify that you live in the home now or did before. The funding fee is 0.5%, and closing costs can be rolled into the loan or covered by taking a slightly higher rate.
VA rules in place since 2018 protect borrowers from churning:
- Seasoning: you must wait until the later of 210 days after your first payment or your sixth monthly payment.
- Recoupment: the fees and costs must be recovered through lower payments within 36 months.
- Rate drop: a fixed-to-fixed refinance must cut your rate by at least 0.5 percentage point. Going from fixed to adjustable requires a drop of at least 2 points.
Pitfalls to avoid
- Refinance offers that sound too good. The VA warns borrowers to be wary of offers that promise both a lump sum of cash and a lower monthly payment, especially in unsolicited mail or calls. Federal regulators have acted against lenders over deceptive VA refinance ads.
- Turning equity into long-term debt. In the VA's example, taking $100,000 cash out of a $300,000 balance creates a $400,000 loan. That can add well over $100,000 in interest over 30 years.
- Restarting the clock. Every refinance resets amortization, so early payments go mostly to interest.
- Not shopping around. The VA doesn't set rates and doesn't partner with any one lender. Ask at least two or three lenders for a Loan Estimate on the same day.
- Forgetting about entitlement in use. A VA loan you haven't paid off still uses part of your entitlement. As the VA's example above shows, that can cap what you can borrow next time without a down payment.
- Forgetting the full housing cost. Property taxes and homeowners insurance count against your residual income and your budget.
If a lender's behavior seems off, the VA suggests contacting VA Loan Guaranty Service at 1-877-827-3702, the VA Inspector General or the Consumer Financial Protection Bureau. For an overview of the program, see our VA loans guide.
Frequently asked questions
Do VA loans require a down payment?
No, as long as the purchase price isn't higher than the appraised value. VA loans also have no private mortgage insurance. Most borrowers pay a one-time funding fee instead.
How much is the VA funding fee in 2026?
For a purchase with less than 5% down, it's 2.15% of the loan for first-time use and 3.3% after. It drops to 1.5% with 5% down and 1.25% with 10% down. IRRRLs cost 0.5%. Veterans receiving VA disability compensation are exempt.
Is there a VA loan limit in 2026?
Not if you have full entitlement. You can borrow what a lender approves, as long as the appraisal supports the price. If part of your entitlement is in use, the county conforming limit applies: $832,750 in most counties for 2026.
What credit score do I need for a VA loan?
The VA doesn't set a minimum. Lenders do, and NerdWallet found most require between 500 and 620. Veterans United, USAA and Chase list 620, for example, and loanDepot lists 520.
What is VA residual income?
It's the money left each month after housing costs, debts and estimated living expenses. VA sets minimums by family size and region. For a family of four on a loan of $80,000 or more, it ranges from $1,003 in the Midwest and South to $1,117 in the West.
When can I refinance with an IRRRL?
You must wait until the later of 210 days after your first payment or six monthly payments. The new loan must recoup its costs within 36 months, and a fixed-to-fixed refinance must cut your rate by at least 0.5 percentage point.
Sources
- VA – Eligibility for VA home loan programs
- VA – How to request a VA home loan Certificate of Eligibility
- VA – VA funding fee and loan closing costs
- VA – VA home loan entitlement and limits
- VA – Purchase loan
- VA – Interest rate reduction refinance loan
- VA Circular 26-18-13 – IRRRL seasoning, recoupment and net tangible benefit
- VA News – You could be losing thousands on your home loan
- FHFA – Conforming loan limit values for 2026
- VA Loan Network – VA residual income chart (38 CFR 36.4340)
- Mortgage Research Center – Largest VA mortgage lenders by loans completed in 2025
- NerdWallet – Best VA loan lenders of October 2026
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.