VA home loans: what eligible buyers should know

VA home loans are guaranteed by the U.S. Department of Veterans Affairs and made by approved private lenders. For eligible borrowers they are often one of the lowest-cost ways to buy a home.

Who may be eligible

• Veterans who meet service requirements
• Active-duty service members
• Some members of the National Guard and Reserves
• Certain surviving spouses

Eligibility is confirmed with a Certificate of Eligibility (COE). Most lenders can request it for you online.

Main benefits

• No down payment in many cases, when the price is at or below the appraised value and you have full entitlement.
• No monthly mortgage insurance.
• Limits on certain closing costs the borrower can be charged.
• Can be used more than once over your lifetime, as entitlement allows.

The VA funding fee

Most VA borrowers pay a one-time funding fee that helps keep the program running. It can usually be added to the loan. The amount depends on your down payment and whether you have used the benefit before. Veterans who receive VA disability compensation are generally exempt.

What lenders still look at

The VA does not set a single minimum credit score, but lenders do set their own. They also look at your income, debts and a measure called residual income, the money left each month after major expenses.

VA refinancing

Eligible homeowners can use a VA Interest Rate Reduction Refinance Loan (IRRRL) to lower the rate on an existing VA loan, or a VA cash-out refinance. See our refinance guide.

Common questions