The VA loan is one of the most powerful benefits available to eligible veterans, active duty service members, and surviving spouses. No down payment. No private mortgage insurance. Competitive rates. Here's how to use it.
*VA sets no minimum. Lenders typically require 580–620. Subject to eligibility and underwriting.
No other loan program offers the combination of $0 down, no PMI, competitive rates, and lifetime reusability that the VA loan provides to those who have served.
Eligible veterans can purchase a home with no down payment — regardless of purchase price when using full entitlement. No saving up for years. No PMI added to offset the risk.
Conventional loans require PMI when down payment is under 20%. VA loans never require PMI — saving the average buyer $100–$300+ per month over the life of the loan.
VA loans typically carry interest rates 0.25%–0.5% lower than conventional loans. Over a 30-year term, that difference translates to tens of thousands of dollars in savings.
Your VA loan benefit doesn't disappear after you use it once. You can restore your entitlement after paying off a VA loan, or even carry two VA loans simultaneously in some cases.
Veterans with a service-connected disability rating of 10% or higher are completely exempt from the VA funding fee — saving anywhere from $2,000 to $10,000+ depending on loan size.
VA rules restrict which fees lenders can charge. Non-allowable fees cannot be passed to the veteran buyer — and sellers can pay all of a buyer's VA closing costs.
VA eligibility is based on your service history. A Certificate of Eligibility (COE) is required — but getting one is straightforward and we can help.
Our team works with VA-experienced mortgage advisors who can review your service history and confirm your eligibility in minutes — at no cost and no obligation.
VA loans don't require a down payment or PMI, but they do have a one-time VA funding fee. This fee helps fund the program so future veterans can use it too. It can be rolled into the loan — meaning no cash out of pocket at closing.
The fee varies based on your service type, whether it's your first or subsequent use, and your down payment amount. Veterans with a service-connected disability rating are completely exempt.
If you have a service-connected disability rating of 10% or higher, your VA funding fee is completely waived. This also applies to Purple Heart recipients on active duty and surviving spouses of veterans who died in service or from a service-connected disability.
| Loan Use | $0 Down | 5–9% Down | 10%+ Down |
|---|---|---|---|
| First Use | 2.15% | 1.50% | 1.25% |
| Subsequent Use | 3.30% | 1.50% | 1.25% |
| Reserves / Nat. Guard (First) | 2.15% | 1.50% | 1.25% |
| Disabled Veterans | Waived — $0 | ||
Rates effective 2025. Subject to change. Funding fee can be financed into the loan amount.
VA loans are exceptional — but understanding the full picture helps you make the best decision.
See how VA stacks up against other common loan programs at a glance.
| Feature | FHA | VA | Conventional | USDA |
|---|---|---|---|---|
| Down Payment | 3.5% | $0 | 3–5% | $0 |
| Mortgage Insurance | MIP (lifetime) | None | PMI until 20% | Guarantee fee |
| Min. Credit Score | 500–580 | No VA minimum | 620+ | 640+ |
| Loan Limits | County limits | None (full entitlement) | Conforming limit | Area limits |
| Funding / Guarantee Fee | 1.75% upfront | 1.25–3.3% (waivable) | None | 1% upfront |
| Property Type | Primary only | Primary only | Any | Rural primary only |
| Who Qualifies | Most buyers | Veterans/military only | Good credit buyers | Rural area buyers |
| Reusable Benefit | No | Yes — lifetime | No | No |
General guidelines. Actual requirements vary by lender. Speak with a licensed mortgage advisor for your specific situation.
OwningYourHouse.com connects eligible veterans and service members with our featured trusted partner, Direct Rate, for VA mortgage guidance and preferred rates. You are always free to work with the lender of your choice — but OYH network members may qualify for preferred rates and reduced fees when financing through Direct Rate.
Preferred rates available through Direct Rate, LLC, NMLS #2320473, when financing within the OYH trusted partner network. You are not required to use any specific lender. Subject to eligibility, underwriting, and approval.
Straight answers to the most common questions about VA loans.
Start with a no-pressure VA loan review. A licensed advisor will confirm your eligibility and walk you through what's available for your situation.