For a lot of veterans and active-duty service members, VA loans are one of the crucial helpful advantages of navy service. Backed by the U.S. Division of Veterans Affairs, these loans make homeownership extra attainable by decrease upfront prices, no non-public mortgage insurance coverage, and versatile credit score necessities.
With Veterans Day proper across the nook, it’s a great time to spotlight this highly effective program and perceive the way it works. On this Redfin information, we’ll clarify who qualifies, what the principle advantages are, and learn how to benefit from your VA mortgage when shopping for or refinancing a house.
What’s a VA mortgage?
A VA mortgage is a sort of mortgage assured by the U.S. Department of Veterans Affairs. It’s designed to assist eligible service members, veterans, and surviving spouses purchase or refinance a house with favorable mortgage phrases, typically with no down payment required.
Whereas the VA doesn’t lend cash straight (besides in uncommon instances), it ensures a portion of the mortgage. This implies if a borrower defaults, the VA will cowl a part of the lender’s loss. Due to this assure, lenders can provide aggressive rates of interest and versatile qualification requirements.
Why the VA mortgage program exists
The VA mortgage program was established in 1944 as a part of the unique GI Invoice, designed to assist service members transition to civilian life and construct monetary stability. Since then, it has helped greater than 28 million veterans and their households purchase, construct, or refinance properties.
VA loans in at the moment’s market
In keeping with a current Redfin report, VA loans have turn out to be barely extra widespread because the housing market tilts in consumers’ favor and sellers develop extra open to affords with decrease down funds. Nationwide, 7.3% of mortgaged homebuyers used a VA mortgage in August 2025, up from 6.5% a yr earlier—the best share for that month since 2019.
These loans are most prevalent in communities with a robust navy presence. In Virginia Seashore, VA, greater than 43% of mortgaged consumers used a VA mortgage in August—the best share of any main U.S. metro and the biggest on document for the realm. Jacksonville, FL (17%), Washington, D.C. (17%), San Diego, CA (15%), and Las Vegas, NV (12%) additionally rank among the many prime markets for VA financing. VA loans are commonest in these locations as a result of they every have a big navy presence.
Who qualifies for a VA mortgage?
It’s possible you’ll be eligible for a VA mortgage for those who meet no less than one of many following:
Service members & veterans
- 90 consecutive days of lively service throughout wartime, or
- 181 days of lively service throughout peacetime, or
- 6+ years within the Nationwide Guard or Reserves.
Surviving spouses
Unremarried surviving spouses of veterans who died in service or from a service-connected incapacity may qualify.
Certificates of Eligibility (COE)
You’ll want a COE from the VA to show eligibility. Most lenders might help you request this on-line, or you possibly can apply by the VA’s eBenefits portal.
Tip: Even for those who’ve used your VA mortgage profit earlier than, you should still qualify once more by restoration of entitlement.
Forms of VA loans
Not each VA mortgage is for purchasing a house – some are designed that will help you refinance, renovate, and even faucet into your property’s fairness. Irrespective of your monetary scenario or targets, right here’s a have a look at the principle sorts of VA loans and what every affords.
Your lender might help you determine which VA mortgage sort matches your monetary targets.
| Kind of VA Mortgage | Objective | Key Options |
| VA Buy Mortgage | Purchase a main residence | No down fee required most often, no PMI, aggressive charges. |
| VA Money-Out Refinance | Refinance your present mortgage and faucet into residence fairness | Entry as much as 90% of your property’s worth as money, can be utilized to refinance non-VA loans. |
| VA Curiosity Charge Discount Refinance Mortgage (IRRRL) | Refinance an current VA mortgage to decrease your rate of interest | Streamlined course of with minimal documentation; typically no appraisal or revenue examine required. |
| VA Jumbo Mortgage | Purchase a costlier residence that exceeds conforming mortgage limits | No formal VA mortgage restrict when you have full entitlement; lender requirements might differ. |
| Native American Direct Mortgage (NADL) | Purchase, construct, or enhance a house on Federal Belief Land | Supplied straight by the VA (not non-public lenders); obtainable to eligible Native American veterans. |
| VA Renovation Mortgage (much less widespread) | Purchase or refinance and fund repairs or enhancements | Combines buy/refinance with renovation prices into one VA-backed mortgage. |
VA mortgage limits
The VA doesn’t cap how a lot you possibly can borrow, until you may have impacted entitlement, which means a part of your VA profit is already getting used on one other mortgage or wasn’t totally restored.
When mortgage limits do apply, they’re sometimes based mostly on the traditional mortgage restrict, which for 2025 is $806,500 for one-unit properties in most areas of the U.S. Lenders additionally use these standard limits as the place to begin for VA jumbo loans.
Some high-cost areas have greater limits, giving certified debtors extra flexibility. And if it is advisable borrow greater than your native restrict permits, you should still qualify for a VA jumbo mortgage, which doesn’t require a down fee and may provide a decrease fee than a standard jumbo mortgage.
VA mortgage advantages
VA loans provide a number of benefits that make them particularly interesting:
- No down fee required most often
- No private mortgage insurance (PMI)
- Decrease common rates of interest in comparison with standard loans
- Versatile credit score and revenue requirements
- Streamlined refinance choices by VA IRRRL (Curiosity Charge Discount Refinance Mortgage)
- Assumable loans, which means a professional purchaser can take over your VA mortgage
For instance, on a $400,000 residence, a standard mortgage with 5% down would require $20,000 upfront – plus PMI. With a VA mortgage, you might pay $0 down and skip PMI completely, saving 1000’s within the first yr alone.
VA mortgage necessities
Whereas VA loans are identified for being versatile, you’ll nonetheless want to fulfill a couple of key necessities:
- Credit score and revenue: The VA units normal tips, however lenders set up their very own requirements. Most search for a credit score of 620 or greater, although some might approve decrease scores with robust financials.
- Property: The house have to be your main residence and meet the VA’s Minimal Property Necessities (MPRs).
- Funding price: Most debtors pay a VA funding fee, which ranges from 1.25% to three.3% of the mortgage quantity relying on service historical past and down fee. Some veterans are exempt (e.g., these with service-connected disabilities).
- Residual revenue: Lenders consider whether or not you may have sufficient revenue left over after month-to-month bills, a novel VA requirement to assist stop foreclosures.
Need to estimate your month-to-month VA mortgage funds? Use our mortgage calculator to see how your mortgage quantity, rate of interest, and time period have an effect on your fee.
Can you utilize your VA mortgage profit greater than as soon as?
Sure, you should use your VA mortgage profit multiple times. You may restore your full entitlement by promoting your present residence, or you should use partial entitlement to purchase one other property for those who maintain your first one. This flexibility is very helpful for navy households who relocate steadily.
VA loans vs. different mortgage varieties
Right here’s how VA loans examine to standard and FHA loans at a look:
| Function | VA Mortgage | Typical | FHA |
| Down fee | 0% (most instances) | 3%+ | 3.5%+ |
| PMI / MIP | No PMI | Required if <20% down | Required |
| Credit score rating | Versatile | Usually 620+ | 580+ |
| Funding price | Sure, 1.25–3.3% | No | Upfront MIP (1.75%) + annual |
| Assumable | Sure | Uncommon | Sure |
VA loans sometimes provide the perfect phrases for individuals who qualify, particularly when in comparison with standard or FHA loans.
>>Learn: Types of Home Loans
The VA mortgage course of: Step-by-step information
The VA mortgage course of is just like a standard mortgage, with a couple of key variations alongside the way in which. Right here’s a fast overview of the VA mortgage course of:
| Step | What Occurs | Key Particulars |
| 1. Examine eligibility | Affirm your service historical past and get a COE. | You may apply on-line or have your lender request it. |
| 2. Discover a VA-approved lender | Work with a financial institution, credit score union, or mortgage firm. | The VA doesn’t lend straight (aside from Native American Direct Loans). |
| 3. Get preapproved | Lender opinions credit score, revenue, and entitlement. | This helps you set a finances and strengthen affords. |
| 4. Home hunt | Store for a house inside your preapproval quantity. | The house have to be your main residence. |
| 5. VA appraisal | The VA requires a particular appraisal. | Ensures the property meets VA minimal property necessities (MPRs). |
| 6. Underwriting | Lender verifies paperwork and finalizes the mortgage. | Could ask for more information earlier than closing. |
| 7. Closing | You signal remaining paperwork and get the keys. | It’s possible you’ll pay a one-time VA funding price (will be rolled into the mortgage). |
>>Learn: How to Buy a Foreclosed Home With a VA Loan
When a VA mortgage may not be proper
VA loans are an incredible choice for a lot of veterans and repair members, however they’re not perfect for each scenario. It’s possible you’ll wish to think about one other mortgage sort if:
- You’re shopping for a trip or funding property: VA loans are just for main residences. For a second home or rental, you’ll want a standard mortgage.
- The house doesn’t meet VA property requirements: Properties should meet the VA’s security and livability necessities. A fixer-upper might not qualify until it’s financed with a VA renovation mortgage.
- The funding price might offset your financial savings: As famous earlier, most debtors pay a one-time VA funding price. For smaller mortgage quantities or when making a big down fee, that price can scale back among the mortgage’s monetary benefits.
Even when a VA mortgage isn’t the fitting match now, you should still qualify sooner or later. For instance, if a fixer-upper doesn’t meet VA requirements at the moment, you might use a VA renovation mortgage as soon as repairs are full.
Ceaselessly requested questions on VA loans
1. Can I take advantage of a VA mortgage for a second residence or funding property?
No. VA loans are just for main residences, although you possibly can reuse your profit for a brand new main residence.
2. Are VA loans just for first-time consumers?
No. You need to use the profit a number of instances so long as you may have remaining entitlement.
3. Can I get a VA mortgage with a bad credit score?
Probably. The VA doesn’t set a minimal rating, however most lenders search for round 620. Some might approve decrease with robust compensating elements.
4. How lengthy does it take to shut on a VA mortgage?
On common, 30–45 days, just like standard loans, although the VA appraisal can add a little bit of time.
5. Do I want mortgage insurance coverage with a VA mortgage?
No. As a substitute of PMI, you’ll sometimes pay a one-time funding price, which will be financed.
