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.

Are a qualifying surviving spouse.

A Certificate of Eligibility (COE) is a document required to use your VA home loan benefit.

Your lender will use your COE to verify your VA loan entitlement before moving forward with the loan process. 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. While a down payment is not required, some buyers 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, VA loans don't require monthly mortgage insurance premiums. This can help lower your monthly payment and make homeownership more affordable for eligible borrowers. 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.

Credit score requirements vary by lender and are just one part of the approval process. Lenders also consider factors such as income, employment history, debt-to-income ratio, and overall financial profile when reviewing a VA loan application.

The VA funding fee is a one-time fee paid by most borrowers who use a VA loan.

The funding fee helps keep the VA loan program available for future veterans and service members. The amount varies based on factors such as your down payment, military category, and whether it's your first time or a subsequent use of your VA loan benefit. In most cases, the funding fee can be rolled into the loan amount, and some veterans may be exempt.

Many veterans are able to 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. Eligibility and entitlement requirements apply.

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 choose to keep their current home as a rental while purchasing another primary residence at their new duty station. Your eligibility will depend on how much entitlement remains available and whether you meet your lender's qualification requirements.

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. If you're looking to buy a vacation home or a property that won't be your primary residence, you'll likely need to explore other financing options. However, you may be able to use your VA loan 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 use a VA loan to purchase a multi-unit property—such as a duplex, triplex, or fourplex—as long as you live in one of the units as your primary residence. Many veterans use this strategy to generate rental income while taking advantage of their VA loan benefit.

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.

Seller-paid closing costs can help reduce the amount of cash you need at closing. Depending on the transaction, a seller may cover expenses such as lender fees, title fees, appraisal costs, prepaid taxes, and homeowners insurance. Seller concessions can also be used toward certain additional buyer expenses, up to the VA's 4% limit.

For example, 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. It is what makes the VA loan program possible and allows eligible borrowers to purchase a home with no down payment.

Most eligible veterans have full entitlement, meaning there is no VA-imposed loan limit. If you've used your VA loan benefit before or currently have a VA loan, your remaining entitlement may affect how much you can borrow without a down payment. Your lender can help determine how much entitlement you have available.

Yes. VA disability benefits can be used as qualifying income when applying for a VA loan.

Because VA disability compensation is generally tax-free and received regularly, lenders can use it when determining your ability to repay the loan. In some cases, lenders may even "gross up" tax-free income, which can increase the amount of income used for qualification purposes. Documentation of your disability benefits will typically be required during the loan process.

Yes. Basic Allowance for Housing (BAH) can be used as qualifying income when applying for a VA loan.

Lenders recognize BAH as a stable source of income for active-duty service members. Because BAH is tax-free, some lenders may be able to "gross up" the income, which can increase your purchasing power. The amount used for qualification will depend on your current rank, dependency status, and duty station.

Residual income is the amount of money you have left each month after paying major expenses such as your mortgage, debts, taxes, and housing costs.

Unlike many loan programs, the VA requires lenders to calculate residual income to help ensure borrowers can comfortably afford their monthly obligations. The required amount varies based on your family size, region of the country, and loan amount. Meeting residual income requirements can help strengthen your VA loan application.

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 refinance options: the Interest Rate Reduction Refinance Loan (IRRRL), often called the VA Streamline Refinance, and the VA Cash-Out Refinance. Depending on your goals, refinancing may help lower your interest rate, reduce your monthly payment, shorten your loan term, or access your home's equity.