Frequently Asked Questions
Who is eligible for a VA loan?
VA loans are available to active-duty service members, veterans, and certain National Guard and Reserve members who meet service-length requirements (typically 90 continuous days during wartime or 181 days in peacetime). Surviving spouses of service members who died in the line of duty or from a service-connected disability also qualify. Eligibility is confirmed via a Certificate of Eligibility (COE) from the VA.
What is the VA funding fee?
The funding fee replaces private mortgage insurance. For first-use loans with no down payment, it's 2.15% of the loan; subsequent uses are 3.30%. Putting 5% down reduces it to 1.50%, and 10% down reduces it to 1.25%. Veterans with service-connected disabilities and surviving spouses are exempt entirely. The fee is typically financed into the loan.
Why is no down payment such a big deal?
A standard VA loan finances 100% of the home - no down payment required for properties up to the county loan limit (matched to the conforming limit, $806,500 baseline in 2025, indexed higher for 2026). On a $400,000 home, that's $80,000 in cash not needed at closing. Combined with no PMI and competitive rates, VA loans are typically the best mortgage available to those who qualify.
Are there limits on VA loans?
For borrowers with full entitlement (first use, or prior loan paid off and home sold), there is no loan limit - you can borrow whatever an underwriter approves based on income. For partial entitlement (still have an active VA loan), county loan limits apply: for 2025, $806,500 baseline and up to $1,209,750 in high-cost areas, indexed higher for 2026.
Can I use the VA benefit more than once?
Yes. You can use the VA benefit multiple times over your lifetime. If you sold the previous property and paid off the VA loan in full, your full entitlement is restored. It's also possible to have two active VA loans at once under certain circumstances, using your remaining entitlement.
Do VA loans require private mortgage insurance (PMI)?
No. This is one of the key advantages of a VA loan. Conventional loans with less than 20% down require PMI, which can cost $100-$200/month or more. VA loans have no PMI, saving you money every month. The one-time funding fee takes its place instead.
What is the Certificate of Eligibility (COE) and how do I get it?
The COE is the document that verifies your eligibility for the VA loan benefit. You can request it online through the VA's eBenefits portal, through a VA-approved lender (most can pull it electronically in minutes), or by mail using VA Form 26-1880.
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