VA Home Loan Guide

A VA home loan is a mortgage option backed by the U.S. Department of Veterans Affairs. The VA does not lend the money directly (with one exception) — instead, it guarantees a portion of the loan, which allows private lenders to offer significantly better terms than conventional mortgages.

Key advantages include:

• No down payment — purchase a home with zero money down in most cases
• No private mortgage insurance (PMI) — unlike conventional loans that require PMI for less than 20% down
• Competitive interest rates — typically lower than conventional or FHA loans
• Limited closing costs — the VA restricts what lenders can charge veterans
• No prepayment penalty — pay off your loan early without extra fees
• Easier qualifying standards — more flexible credit and income requirements

VA home loan eligibility is based on your service history, duty status, and character of discharge. General requirements:

• Active duty: 90 consecutive days during wartime, or 181 continuous days during peacetime
• Post-9/11 service: 90 consecutive days of active service (any of which occurred after September 10, 2001)
• National Guard / Reserve: 6 or more years in the Selected Reserve or National Guard, OR called to active duty for at least 90 days under Title 10
• Current service members: 90 continuous days on active duty (wartime) or 181 days (peacetime)
• Surviving spouses: Un-remarried spouse of a veteran who died in service or from a service-connected disability. Spouses of POW/MIA service members may also qualify.

You must have been discharged under conditions other than dishonorable. If you received a less-than-honorable discharge, you can request a character-of-discharge determination from the VA.

The Certificate of Eligibility is a document from the VA that confirms you meet the service requirements for a VA home loan. Your lender needs it before processing your loan.

How to Get Your COE

• Online (fastest): Apply through the VA's eBenefits portal — many applicants get an instant result
• Through your lender: Most VA-approved lenders can pull your COE electronically using the VA's Web LGY system
• By mail: Complete VA Form 26-1880 and mail it to the Atlanta Regional Loan Center

Documents You May Need

• DD-214 (for veterans)
• Statement of Service signed by your commander or personnel office (for active duty)
• NGB Form 22 or discharge papers (for National Guard)
• Annual retirement points statement (for Selected Reserve)
• Death certificate and marriage license (for surviving spouses)

Your entitlement is the amount the VA guarantees on your loan. Understanding entitlement matters most if you plan to have more than one VA loan at a time or have a prior VA loan default.

Basic Entitlement

The VA guarantees up to $36,000 in basic entitlement. This is enough to cover a loan of up to $144,000 without a down payment (lenders typically require the guarantee to cover 25% of the loan).

Bonus (Tier 2) Entitlement

For loan amounts above $144,000, the VA provides additional "bonus" entitlement. This bonus entitlement is tied to the conforming loan limit in your county.

After the Blue Water Navy Act (2020)

As of January 1, 2020, veterans with full entitlement have no loan limit — you can borrow as much as a lender will approve with zero down payment. County loan limits only apply if you have reduced (partial) entitlement, such as when you already have an active VA loan or had a VA loan default.

The VA funding fee is a one-time fee paid at closing (or rolled into the loan) that helps sustain the VA loan program. The amount depends on your service type, down payment, and whether it's your first VA loan.

Current Funding Fee Rates — Purchase Loans

National Guard and Reserve members pay slightly higher rates (0.15%–0.20% more) on first use with less than 5% down.

Who Is Exempt from the Funding Fee

• Veterans receiving VA disability compensation (10% or higher rating)
• Veterans eligible to receive VA disability compensation but receiving retirement or active duty pay instead
• Surviving spouses entitled to DIC (Dependency and Indemnity Compensation)
• Active duty service members who provide evidence of a Purple Heart award before closing

If you paid the funding fee and later received a retroactive disability rating, you can request a refund from the VA.

• Purchase Loan: The standard VA loan for buying a primary residence. No down payment, no PMI, competitive rates.
• Cash-Out Refinance: Refinance an existing mortgage (VA or non-VA) and take cash out of your home's equity. Can also be used to refinance a non-VA loan into a VA loan.
• Interest Rate Reduction Refinance Loan (IRRRL): Also called a "streamline refinance." Refinances an existing VA loan to a lower interest rate with minimal paperwork. No appraisal or credit underwriting required in many cases.
  Read our full IRRRL guide →
• Native American Direct Loan (NADL): The one exception where the VA lends directly. Available to Native American veterans (or veterans married to a Native American) for purchasing, building, or improving a home on Federal Trust Land.
  Read our full NADL guide →
• Adapted Housing Grants: Not a loan, but a grant for veterans with certain service-connected disabilities to modify or build an adapted home. Includes the Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants (see details below).

1. Get your Certificate of Eligibility (COE): Apply online through eBenefits, have your lender pull it, or mail VA Form 26-1880. This confirms your eligibility.
2. Find a VA-approved lender: Not all lenders offer VA loans. Shop around and compare rates — even small rate differences save thousands over the life of a loan.
3. Get pre-approved: The lender will review your income, credit, debts, and COE to determine how much you can borrow. A pre-approval letter strengthens your offer.
4. Find a home: Work with a real estate agent (ideally one experienced with VA transactions). The home must be your primary residence.
5. VA appraisal: Once you're under contract, the lender orders a VA appraisal. A VA-assigned appraiser determines the home's market value and checks it meets Minimum Property Requirements (MPRs).
6. Underwriting and closing: The lender finalizes the loan. At closing you'll sign documents and pay any closing costs or the VA funding fee (unless exempt). You get the keys.

Every VA purchase loan requires a VA appraisal. This is different from a home inspection — the appraiser determines the home's fair market value and confirms the property meets the VA's Minimum Property Requirements (MPRs).

What the VA Appraiser Checks

• Adequate roof, foundation, and structural integrity
• Working mechanical systems (heating, electrical, plumbing)
• Safe and sanitary water and sewage systems
• No lead-based paint hazards (for homes built before 1978)
• Adequate access from a public or private road
• No termite or pest damage that affects structural integrity
• Sufficient living space for the intended use

The Tidewater Process

If the VA appraiser believes the home's value will come in below the purchase price, they invoke the "Tidewater" process before issuing a final value. This gives the lender (and the veteran's agent) 48 hours to submit additional comparable sales or other data that may support the contract price. If the appraisal still comes in low, the veteran can renegotiate, make up the difference in cash, or walk away.

• You can use your VA loan benefit more than once. Pay off or sell the home and restore your entitlement. You can even have multiple VA loans at the same time if you have enough remaining entitlement.
• It is not just for first-time homebuyers. There is no limit on the number of times you can use a VA loan.
• Sellers can pay your closing costs. The VA allows sellers to pay all of the veteran's loan-related closing costs and up to 4% of the loan amount in concessions (covering things like prepaid taxes and insurance).
• VA loans are not "slower" than conventional loans. With an experienced lender, VA loans close on a similar timeline to other loan types.
• You can use a VA loan for condos and manufactured homes — as long as the property is VA-approved and meets MPRs.
• Refinancing does not require a new COE. For an IRRRL (streamline refinance), your existing VA loan serves as proof of eligibility.
• Your entitlement can be restored if you sell the home and pay off the loan, or if a qualified veteran assumes your loan.

The VA offers housing grants to veterans with certain service-connected disabilities. These grants help adapt an existing home, build a new adapted home, or purchase an already-adapted home.

Specially Adapted Housing (SAH) Grant

Maximum grant amount: $126,526 (FY 2026, adjusted annually). Available up to 6 times, with the total not to exceed the maximum. For veterans with qualifying disabilities including:

• Loss or loss of use of both legs, or both arms, or one leg and one arm
• Blindness in both eyes (with certain criteria)
• Certain severe burns
• Loss or loss of use of a lower extremity after September 11, 2001, that prevents ambulation without assistive devices

Special Housing Adaptation (SHA) Grant

Maximum grant amount: $44,299 (2024 figure, adjusted annually). Available up to 6 times, with the total not to exceed the maximum. For veterans with qualifying disabilities including:

• Blindness in both eyes (with light perception only)
• Loss or loss of use of both hands
• Certain severe burns
• Certain severe respiratory injuries

Apply through your VA regional office or online at VA.gov using VA Form 26-4555. The VA also offers Temporary Residence Adaptation (TRA) grants if you are living temporarily in a family member's home.

Apply for SAH/SHA Grants

If you are struggling to make your VA loan payments, the VA has programs to help you avoid foreclosure. Contact your loan servicer or the VA as early as possible — the sooner you reach out, the more options are available.

Options available:

• Repayment plan — Your servicer adds a portion of the missed payments to your regular monthly payment until you are caught up
• Special forbearance — Temporary suspension or reduction of payments during a financial hardship, with an agreement to repay later
• Loan modification — Permanently changes the terms of your loan (interest rate, term length, or adding missed payments to the balance) to make payments affordable
• VA Refunding program — In certain cases, the VA can buy your loan from the servicer and restructure it on more favorable terms
• Private sale — Sell the home before foreclosure, even if the sale price is less than what you owe (short sale requires servicer approval)
• Deed in lieu of foreclosure — Transfer the property to the servicer to avoid formal foreclosure proceedings (last resort, but less damaging to credit than foreclosure)

VA Loan Servicing: Call 877-827-3702 to speak with a VA loan technician who can intervene on your behalf with your servicer. The VA assigns a technician to every loan that becomes 61+ days delinquent to help explore alternatives to foreclosure.

Most states offer property tax exemptions for disabled veterans, and this is one of the most valuable but overlooked benefits. For veterans rated 100% permanent and total (P&T), many states offer a full property tax exemption — which can save thousands of dollars per year.

Common patterns across states:

• 100% P&T disability: Full property tax exemption in 22+ states (including Texas, Florida, Virginia, Michigan, Illinois, and others)
• Partial disability ratings: Many states offer partial exemptions scaled to disability percentage, or fixed dollar amounts off assessed value
• Surviving spouses: 30+ states extend some form of property tax exemption to surviving spouses of disabled or deceased veterans
• Application required: Exemptions are not automatic — you must apply through your county tax assessor's office with proof of disability rating and property ownership

Rules vary dramatically by state. Check your state benefits page for the specific exemptions and application process in your state.