VA Loan Key Benefits
| Benefit | VA Loan | Conventional Loan | FHA Loan |
|---|---|---|---|
| Down payment | 0% required | 3–20% required | 3.5% required |
| Private mortgage insurance | None required | Required under 20% down | Required for life of loan |
| Credit score minimum | No VA minimum (lenders vary) | 620+ typically | 580+ |
| Interest rates | Below market (VA guarantee) | Market rate | Slightly above market |
| Funding fee | 1.25–3.3% of loan amount | None | 1.75% upfront MIP |
| Loan limits | No limit for full entitlement | Conforming limits apply | FHA limits apply |
| Assumable | Yes | No (most cases) | Yes |
The VA guarantees 25% of the loan amount up to the conforming loan limit ($766,550 in most areas for 2026). This guarantee means if you default, the VA pays the lender 25% of the outstanding balance. Because of this guarantee, lenders take less risk — allowing them to offer 0% down and better rates. You never interact with the VA guarantee directly; it works behind the scenes.
1. Obtain Certificate of Eligibility (COE) — from VA.gov or through your lender. 2. Choose a VA-approved lender — most major mortgage lenders are VA-approved. 3. Get pre-approved — lender reviews your income, credit, and COE. 4. Find a home and make an offer — must be your primary residence. 5. VA appraisal — required, ensures property meets VA minimum property requirements. 6. Underwriting and closing — similar to conventional mortgage process.
Frequently Asked Questions
For eligible veterans, VA loans are almost always better than conventional loans: no down payment saves $15,000–$60,000 upfront on a $300,000 home; no PMI saves $100–$200/month; lower interest rates save money every month. The VA funding fee (1.25–3.3%) is the only trade-off — but it's offset by eliminated PMI and lower rates within a few years for most borrowers.
Yes — VA loan benefits are reusable. You can use a VA loan multiple times throughout your lifetime, including simultaneously having multiple VA loans if you have remaining entitlement. After paying off a VA loan, your full entitlement is restored. With remaining entitlement (not fully restored), you can still buy another home with a VA loan — you just may need to pay a down payment for amounts over your remaining entitlement.