Frequently asked VA loan questions

You may be eligible if you: served at least 90 consecutive days during wartime; served at least 181 days during peacetime; served at least 6 years in the National Guard or Reserves; or are a qualifying surviving spouse.

A Certificate of Eligibility (COE) is a document required to use your VA home loan benefit. Your lender uses your COE to verify your VA loan entitlement before moving forward. In many cases, a VA-approved lender can obtain your COE electronically within minutes. You may need documents such as a DD-214 or Statement of Service if additional verification is required.

No. Eligible borrowers can purchase a home with a VA loan and no down payment. One of the biggest benefits of a VA loan is the ability to finance up to 100% of the home's purchase price. Some buyers still choose to make one to lower their loan amount, monthly payment, or VA funding fee.

No. VA loans do not require monthly mortgage insurance, regardless of your down payment amount. Unlike FHA and many conventional loans, this helps lower your monthly payment. Instead, most VA loans include a one-time VA funding fee, though some veterans may be exempt.

The VA does not set a minimum credit score requirement, but most lenders have their own credit guidelines. Lenders also consider income, employment history, debt-to-income ratio, and overall financial profile.

The VA funding fee is a one-time fee paid by most borrowers who use a VA loan. It keeps the VA loan program available for future veterans. The amount varies with your down payment, military category, and whether it's a first or subsequent use. It can usually be rolled into the loan, and some veterans are exempt.

Many veterans can use their VA loan benefit again after selling a home and paying off their previous VA loan. Depending on your remaining entitlement, you may even be able to have more than one VA loan at the same time.

Yes. Depending on your remaining VA entitlement, you may be able to have more than one VA loan at the same time. This is common among military members who receive PCS orders and keep their current home as a rental while purchasing another primary residence at their new duty station.

No. VA loans are intended for primary residences and generally cannot be used to purchase a second home or vacation home. The VA requires borrowers to occupy the property as their primary residence. You may be able to use your benefit again when relocating due to military orders or other qualifying circumstances.

No. VA loans cannot be used solely to purchase an investment property. The home must be your primary residence. However, you can purchase a multi-unit property, such as a duplex, triplex, or fourplex, as long as you live in one of the units. Many veterans use this strategy to generate rental income.

Yes. VA loans allow sellers to pay up to 4% of the home's purchase price in seller concessions, in addition to certain allowable closing costs. On a $500,000 home, a seller could contribute up to $20,000 in seller concessions, subject to VA guidelines and lender approval.

VA loan entitlement is the amount the Department of Veterans Affairs guarantees on your behalf. Most eligible veterans have full entitlement, meaning no VA-imposed loan limit. If you've used your benefit before, your remaining entitlement may affect how much you can borrow without a down payment.

Yes. VA disability benefits can be used as qualifying income. Because VA disability compensation is generally tax-free and received regularly, lenders can use it, and in some cases even "gross up" the tax-free income, increasing the amount used for qualification.

Yes. BAH can be used as qualifying income. Lenders recognize BAH as a stable source of income for active-duty service members. Because it's tax-free, some lenders may gross up the income, increasing your purchasing power.

Residual income is the money you have left each month after paying major expenses such as your mortgage, debts, taxes, and housing costs. The VA requires lenders to calculate it to help ensure borrowers can comfortably afford their obligations. The required amount varies by family size, region, and loan amount.

Yes. Homeowners can use a VA loan to refinance an existing mortgage, whether it's a VA loan or a non-VA loan. The VA offers two primary options: the Interest Rate Reduction Refinance Loan (IRRRL), often called the VA Streamline Refinance, and the VA Cash-Out Refinance.