VA LoansMilitary Benefit

Zero down. No PMI.You earned this.

The VA loan is the most powerful mortgage benefit in America — and most veterans don't use it to its full potential. 0% down, no monthly mortgage insurance, and rates that compete with anyone. Here's the full picture.

At a glance

What a VA loan actually looks like

Down Payment
0%
No down payment required
Monthly PMI
None
VA loans don't have PMI
Min Credit Score
580–620
VA has no official floor; lenders set their own
Upfront Funding Fee
1.4%–3.6%
One-time fee; waived if service-connected disability
Max Loan Amount
No limit
With full entitlement and good credit
Occupancy
Primary home only
Investment properties and vacation homes don't qualify

Who qualifies

Service requirements

VA eligibility is based on your service history, not your credit score or income. If you served, there's a good chance you qualify — even if you were told otherwise.

Active Duty
90 consecutive days during wartime OR 181 days during peacetime
Current service members may qualify before separation
National Guard / Reserve
6 years of service OR 90 days of active duty under Title 10
2020 law change expanded Guard/Reserve eligibility significantly
Surviving Spouse
Spouse died in service or from service-connected disability
Must not have remarried (some exceptions apply)
Discharged Veterans
Other than Dishonorable discharge
General and honorable discharges both qualify

Critical detail

Service-connected disability? The funding fee is waived.

If you receive VA disability compensation at any rating — even 10% — you pay $0 in funding fee. On a $300,000 purchase, that's $6,900 back in your pocket. Always verify your exemption status before closing.

The one cost to understand

The funding fee is not PMI

VA loans have no monthly PMI — ever. Instead, there's a one-time upfront funding fee. It replaces the insurance premium conventional buyers pay monthly for years. For most borrowers, it's still a better deal.

Loan Type
First Use
Subsequent
First use, 0% down
2.3%
3.6%
First use, 5–9.9% down
1.65%
1.65%
First use, 10%+ down
1.4%
1.4%
Reserves / National Guard (0% down)
2.3%
3.6%
Cash-out refinance
2.3%
3.6%
IRRRL (streamline refi)
0.5%
0.5%

* Exemption applies if you receive VA disability compensation at any rating. Confirm with your lender before closing.

Best fit

When VA is the obvious choice

First-time buyer with no savings
0% down means you can buy without years of saving. Closing costs can even be rolled in or covered by seller concessions.
Buyer with a disability rating
No funding fee + no PMI + competitive rates = the lowest all-in cost of any loan program in America.
Buyer with imperfect credit
VA guidelines are more flexible than conventional. Lenders look at the full picture, not just the score.
Repeat buyer with full entitlement
You can use VA benefits multiple times. Even if you have an existing VA loan, you may still have remaining entitlement.

Eyes open

What nobody tells you

VA loans are excellent — and they have real constraints. Know these before you start shopping.

Not all homes qualify
VA appraisals enforce Minimum Property Requirements (MPRs). Fixer-uppers, homes with deferred maintenance, or properties with health/safety issues may not pass. This isn't a bad thing — it protects you — but it limits which homes you can buy.
The funding fee isn't free money
Most borrowers roll the funding fee into the loan, which means you're paying interest on it for 30 years. A 2.3% fee on $300K = $6,900 added to your balance. Budget for it or pay it at closing if you can.
Some lenders don't specialize in VA
VA loans have specific appraisal rules, timeline requirements, and paperwork flows. A lender who doesn't do VA regularly can cost you your contract. Work with someone who does VA loans often.
Entitlement gets complicated after prior use
If you sold a home with a VA loan and restored your entitlement — great. If you still have an active VA loan, you may have only partial entitlement left. It's solvable but requires a Certificate of Eligibility (COE) review.

Already a VA homeowner?

The IRRRL is the easiest refi in mortgages

The Interest Rate Reduction Refinance Loan (IRRRL) — pronounced “Earl” in the industry — is VA's streamline refinance. Minimal paperwork, no appraisal in most cases, lowest funding fee of any VA loan.

→Streamline refinance: no appraisal, no income verification in most cases
→0.5% funding fee (lowest of any VA loan type)
→Can only refinance an existing VA loan into another VA loan
→Must lower your interest rate OR move from ARM to fixed
→New VA Cash-Out refi lets you pull equity even if original loan wasn't VA

Getting started

Four steps to using your benefit

01
Get your Certificate of Eligibility
Your lender can pull your COE electronically in minutes. It confirms your entitlement — how much VA loan coverage you have available.
02
Know your funding fee status
If you have any VA disability rating, you're exempt. Confirm before you apply — lenders sometimes miss this and you'll be charged if you don't catch it.
03
Get pre-approved with a VA-experienced lender
Ask specifically: 'How many VA loans did you close last year?' You want someone who knows the appraisal quirks, the timeline, and how to write a competitive offer in a VA context.
04
Make a competitive offer
VA offers can compete with conventional — especially with a strong pre-approval letter and a VA-savvy agent. The 'VA loans are slow' myth is mostly outdated. Closing timelines are comparable.
You are on step 3 of 4 · Qualify

You've seen how the VA benefit works — funding fee, IRRRL, and the disability exemption that saves $6,900+.

Next up: The lender comes later.

Keep the momentum. Step 4 · Connect picks up exactly where this page leaves off — still free, still no credit pull, still no sales call.

See If I Qualify