Quick answer
A VA loan is a mortgage for eligible veterans, service members and some surviving spouses. Private lenders make the loan, and the U.S. Department of Veterans Affairs guarantees part of it. That guarantee is why VA loans allow 0% down with no monthly mortgage insurance.
Most borrowers pay a one-time funding fee instead, waived for veterans receiving VA disability compensation. The home must be your primary residence. With full entitlement, VA sets no loan limit.
VA rules on this page were verified in . Program terms and eligibility are subject to VA and lender guidelines and may change. See VA’s home loan pages.
At a glance: the VA loan
- Down payment: 0% with full entitlement
- Mortgage insurance: none monthly
- Funding fee: 2.15% first use with less than 5% down; waived with VA disability compensation
- Service: e.g. 24 continuous months, or 90 days active, or 6 years Guard/Reserve
- Loan limit: none with full entitlement
- Occupancy: primary residence only
What are the benefits of a VA loan?
- No down payment for borrowers with full entitlement. See buying a home with no money down.
- No monthly mortgage insurance, even with 0% down.
- Flexible qualifying. VA looks at a 41% debt-to-income guideline together with residual income, the money left each month after major expenses, rather than a hard credit-score floor. Lenders set their own minimum scores.
- Limits on closing costs. VA restricts some fees veterans can be charged, and sellers can pay customary closing costs plus concessions up to 4%.
- Reusable. Your entitlement can be restored after you sell and pay off the loan, and in many cases you can use remaining entitlement while keeping your first home.
- Construction and refinancing. VA one-time-close construction loans, cash-out refinances and the IRRRL streamline all use the same benefit.
How much is the VA funding fee?
| Purchase or construction loan | First use | After first use |
|---|---|---|
| Less than 5% down | 2.15% | 3.3% |
| 5% to less than 10% down | 1.5% | 1.5% |
| 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL (rate reduction refinance) | 0.5% | 0.5% |
Source: VA, Funding fee and closing costs, rates effective April 7, 2023. Subject to VA guidelines and may change.
You don’t pay the fee if you receive VA compensation for a service-connected disability, are eligible for it but receive retirement or active-duty pay instead, are a surviving spouse receiving Dependency and Indemnity Compensation, have a pre-discharge rating before closing, or are an active-duty Purple Heart recipient. The fee is usually financed into the loan.
On an illustrative $350,000 Robertson County purchase with 0% down on first use, the 2.15% fee is $7,525, making the loan $357,525. A veteran exempt from the fee would borrow $350,000.
Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors.
Who is eligible for a VA loan?
| Status | Minimum service (common cases) |
|---|---|
| Currently serving | 90 continuous days of active service |
| Veteran (served after Aug 2, 1990) | 24 continuous months, or the full period called to active duty (at least 90 days) |
| National Guard | 90 days of qualifying active duty, or 6 creditable years |
| Reserve | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouse | Receiving or eligible for certain Dependency and Indemnity Compensation, or spouse of a service member missing in action or a prisoner of war |
Earlier service eras, discharges for a service-connected disability, and other exceptions have different minimums. Source: VA, Eligibility requirements.
Your lender proves eligibility with a Certificate of Eligibility (COE). You can request it from VA, or your lender can request it for you, usually with your DD-214 or a statement of service if you’re still serving.
Is there a VA loan limit?
Not if you have full entitlement. Since 2020, a borrower with full entitlement has no VA loan limit, and the loan size is set by what you qualify for and what the lender approves. If part of your entitlement is tied up in a loan you still have, the county conforming loan limit is used to work out how much you can borrow with no down payment on the next home.
What are the drawbacks of a VA loan?
- The funding fee, unless you’re exempt; financing it raises your loan balance.
- Primary residence only. You must intend to live in the home; no vacation homes or pure investment properties.
- Property requirements. The VA appraisal checks minimum property requirements, so some fixer-uppers need repairs before closing.
- Appraiser selection. VA assigns the appraiser, which can add time in rural areas.
- It’s not always the lowest-cost option. With 20% down and strong credit, a conventional loan has no funding fee and may cost less overall, depending on rate, fees and how long you keep the loan.
VA loan FAQ
What credit score do I need for a VA loan?
VA doesn’t set a minimum score; lenders do. Many lenders look for a score around 580 to 620, and approval depends on the whole file, including your debt-to-income ratio and residual income. Program terms are subject to VA and lender guidelines.
Can I use a VA loan more than once?
Yes. You can restore entitlement after you sell and pay off a VA loan, and you may be able to use remaining entitlement for a new primary home while keeping the first. After first use, the funding fee is 3.3% with less than 5% down, unless you’re exempt.
Can a surviving spouse get a VA loan?
Some can. Surviving spouses who receive or are eligible for certain Dependency and Indemnity Compensation, or whose spouse is missing in action or a prisoner of war, may qualify. Surviving spouses receiving DIC are also exempt from the funding fee.
Can I build a house with a VA loan?
Yes, with a VA one-time-close construction loan, which can cover the land and the build with no down payment. Few lenders offer it. See our guide to down payments for building a house.
Do VA loans have closing costs?
Yes. VA limits some fees, and the seller can pay customary closing costs plus concessions of up to 4% of the price. Lender credits can cover some costs too, depending on the rate and pricing.
Where these rules come from
| Rule | Source | As of |
|---|---|---|
| Funding fee rates and exemptions | VA, Funding fee and closing costs | Page updated Oct 5, 2026 |
| Service requirements and COE | VA, Eligibility requirements | Retrieved Oct 26, 2026 |
| Entitlement and loan limits | VA, Loan limits | Retrieved Oct 26, 2026 |
| Using entitlement more than once | Christopher Armantrout on WSGI One Street Over | Oct 19, 2026 |
Related guides
- VA loans with Valor Mortgage.
- USDA loan vs. VA loan, if you’re eligible for both.
- Can you buy a home with no down payment in Tennessee?
- Building a home with a VA one-time-close loan (WSGI interview).
- Montgomery County and Fort Campbell mortgage guide.
- About Christopher Armantrout, the licensed originator who wrote this page.
Ready to use your VA benefit? Talk to Valor Mortgage.
Send me your DD-214 or statement of service and I’ll pull your Certificate of Eligibility, check your remaining entitlement and funding-fee status, and show you what you qualify for anywhere in Tennessee.
Call me at (615) 671-9178. That’s the fastest way to get a straight answer on what you’d qualify for and what your VA benefit would look like for you.
If it’s after hours, grab a time on my calendar. Pick a slot that works and I’ll call you then.
If your life is too chaotic for a phone call right now — I understand — start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.