Short answer: To get a VA loan, you need a Certificate of Eligibility (COE) based on your military service, the home must be your primary residence, and you must meet the lender’s credit and income guidelines. In return, VA loans offer no down payment for eligible borrowers with full entitlement, no monthly mortgage insurance, and competitive rates. There’s a one-time VA funding fee, which is waived for many veterans with a service-connected disability.
VA loan requirements at a glance
| Requirement | What it means |
|---|---|
| Eligibility | Qualifying service as a veteran, active-duty service member, National Guard or Reserve member, or eligible surviving spouse |
| Certificate of Eligibility | Proof of eligibility; your lender can often request it for you |
| Occupancy | The home must be your primary residence |
| Credit | The VA doesn’t set a minimum score, but lenders do |
| Income | Stable income that covers your debts and leaves enough left over each month (the VA’s “residual income” test) |
| Property | Must meet the VA’s minimum property requirements, checked by a VA appraisal |
| Funding fee | One-time fee that can be financed; waived for many disabled veterans |
VA loan myths
Myth: “You can only use your VA loan once.”
False. You can use your VA benefit again and again. In many cases you can restore your entitlement after selling a home, and sometimes you can have more than one VA loan at a time.
Myth: “VA loans take forever to close.”
Not true with an experienced lender. VA loans typically close on timelines similar to conventional loans.
Myth: “Sellers don’t like VA offers.”
A well-prepared VA offer with a strong pre-approval competes well. VA appraisals focus on safety, soundness and sanitation, not cosmetic issues.
Myth: “VA loans have a maximum loan amount.”
For borrowers with full entitlement, there’s no VA loan limit. You still need to qualify for the payment, and lenders have their own guidelines.
Myth: “You need perfect credit.”
VA loans are often more flexible than conventional loans on credit and debt-to-income ratio. The residual income test looks at your whole budget, not just a ratio.
Myth: “You can’t use a VA loan for a multi-unit property.”
You can buy a property with up to four units with a VA loan, as long as you live in one of them.
What VA loans can be used for
- Buying a home, condo (in a VA-approved project) or 2 to 4 unit property you’ll live in
- Building a new home
- Refinancing a VA loan to a lower rate with an IRRRL (a streamlined refinance)
- Cash-out refinancing, including refinancing a non-VA loan into a VA loan
The VA funding fee
The funding fee helps keep the program running. It’s a percentage of the loan amount that depends on your down payment and whether you’ve used your benefit before. It can be rolled into the loan. Veterans receiving VA disability compensation, and some others, are exempt.
How to get started with a VA loan
- Get your Certificate of Eligibility. Your lender can usually pull it for you.
- Get pre-approved so you know your price range and can make strong offers.
- Find a home and make an offer. Your agent can help ask for seller-paid closing costs.
- VA appraisal checks the value and that the home meets the VA’s minimum property requirements.
- Underwriting and closing.
Tips for a smooth VA loan
- Work with a lender who does VA loans regularly. Experience keeps the process on schedule.
- Know your disability rating status. It can waive the funding fee.
- Ask about seller concessions. VA rules allow sellers to help with certain costs.
- Look at the IRRRL later. If rates drop, a VA streamline refinance can lower your payment with less paperwork.
Frequently asked questions
How do I get my Certificate of Eligibility?
Your lender can usually pull it online through the VA in minutes. You can also request it yourself through the VA.
Can I buy a home with no money out of pocket?
Often there’s no down payment, and sellers can pay some closing costs. You may still need funds for an earnest money deposit and some upfront costs.
Does a VA loan have mortgage insurance?
No monthly mortgage insurance. The one-time funding fee replaces it.
Can I use a VA loan if I’m still on active duty?
Yes, once you meet the minimum service requirement.
Can a surviving spouse use a VA loan?
Some surviving spouses are eligible. The rules depend on the circumstances, so it’s worth checking.
Thank you for your service
Tell us about your service and the home you want, and we’ll check your eligibility and walk you through your options. Learn more about VA loans, read how much house you can afford, or call 949.423.3883.
Check your VA eligibility
Tell us about your service and the home you want, and we’ll check your eligibility. No cost to find out what you qualify for.