VA Home Loans: How They Work and Who Qualifies
$0 down payment with full VA entitlement, subject to lender approval. Loan limits may apply with partial entitlement.
Your complete VA loan guide—eligibility, benefits, loan types, and what happens at each step, without the jargon overload.
No obligation to apply · Offered through Stride Bank, N.A. (NMLS #466690) · Equal Housing Lender
VA home loans from National VA Loans LLC are offered through Stride Bank, N.A. (NMLS #466690).
Powered by Stride Bank, N.A. · NMLS #466690 · Equal Housing Lender · Secure Online Process
Popular paths
Pick the VA loan path that fits your next move
- Home PurchaseVA purchase
- VA RefinanceLower rate
- VA ConstructionBuild new
- VA RenovationRenovate
- VA IRRRLStreamline
- VA Cash OutEquity
- VA JumboHigh value
- ManufacturedFactory-built
- CalculatorsTools
- VA-focused guidance
- Plain-language updates
- Veteran-first support
- Fast pre-qualification
VA Home Loans: How They Work & Who Qualifies
What is a VA home loan?
A VA home loan is a mortgage made by a private lender, such as a bank or mortgage company, and partly backed by the U.S. Department of Veterans Affairs. VA doesn't lend the money in most cases. Instead, VA's guaranty covers part of the loan, which lets lenders offer a $0 down payment with full VA entitlement, subject to lender approval.
VA sets the program rules: who's eligible, the funding fee, which closing costs you can be charged and the property standards. Your lender sets your interest rate and reviews your credit, income and debts. You still need to meet both VA's and the lender's requirements.
How a VA guaranty works
- Eligible veteran, service member or surviving spouse. You apply with a private lender.
- Offered through Stride Bank, N.A. (NMLS #466690). The lender reviews your application and makes the loan, subject to lender approval.
- U.S. Department of Veterans Affairs. VA guarantees a portion of the loan, generally 25% for borrowers with full entitlement. Source: VA.gov No monthly PMI. A VA funding fee applies unless you're exempt.
National VA Loans is not affiliated with or endorsed by the VA.
How a VA home loan works
At National VA Loans, VA home loans are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval. National VA Loans is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency.
At a glance
- Down payment
- $0 down*
- *With full VA entitlement, subject to lender approval. A VA funding fee may apply.
- Monthly mortgage insurance
- No PMI
- VA loans do not require private mortgage insurance. Taxes, homeowners insurance and any HOA dues still apply.
- VA funding fee (first use)
- 2.15%
- For a first-use purchase with less than 5% down. Some borrowers are exempt, including veterans receiving VA disability compensation.
- Eligibility
- COE required
- A Certificate of Eligibility confirms your VA entitlement. Service and credit requirements apply.
VA loan benefits
$0 down*
*With full VA entitlement, subject to lender approval. A VA funding fee may apply.
No monthly PMI
VA loans don't require private mortgage insurance. The VA guaranty replaces it, but a VA funding fee applies unless you're exempt.
Limited closing costs
VA limits the closing costs veterans may be charged, and the seller may agree to pay some of them.
Reusable entitlement
Your VA home loan benefit isn't one-time. You may be able to use it again after you sell and pay off a prior VA loan, or in some cases while you still have one.
Assumable
A VA loan can be assumed by qualified buyers with lender/VA approval.
No prepayment penalty
VA loans have no prepayment penalty. You can pay extra or pay the loan off early.
Who qualifies for a VA loan?
- Service members who've served at least 90 continuous days on active duty
- Veterans who meet VA's minimum service requirements for when they served
- Current and former National Guard and Reserve members who meet VA's service requirements
- Some surviving spouses, for example those receiving Dependency and Indemnity Compensation (DIC)
- In most cases, a discharge other than dishonorable
You're buying an investment property or vacation home. VA loans are for a home you'll live in.
Your entitlement is partly tied up in another VA loan. Loan limits may apply with partial entitlement.
- Credit history
- Debt-to-income ratio (DTI)
- Residual income, the money left each month after major expenses
- Stable, verifiable income
Getting your Certificate of Eligibility (COE)
A COE confirms eligibility; it is not loan approval.
VA loan types
VA purchase loan
Buy a home to live in. $0 down payment with full VA entitlement, subject to lender approval.
VA IRRRL (streamline refinance)
Refinance an existing VA loan into a new VA loan, often with less paperwork.
VA cash-out refinance
Replace your current mortgage with a VA loan and take cash out of your home equity.
VA refinance options
Compare VA refinance paths and how each one works.
VA construction loan (one-time close)
Finance the build and the permanent mortgage with a single closing.
VA manufactured home loans
Buy a manufactured home that meets VA and lender property requirements.
VA condo loans
Buy a condo in a VA-approved condo project.
VA Loans Above the Conforming Loan Limit
Buy a higher-priced home with a VA loan. With full entitlement, VA sets no loan limit. With partial entitlement, the county loan limit applies to VA's guaranty. VA loans above the conforming loan limit are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval.
VA renovation loans
Buy or refinance a home and include the cost of eligible repairs and improvements in your VA loan. VA renovation loans are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval.
VA loan vs. conventional vs. FHA
A plain-language comparison. Every loan type has its own requirements. Our team can walk you through which one fits your situation.
| Feature | VA loan | Conventional loan | FHA loan |
|---|---|---|---|
| Who can use it | Eligible service members, veterans and some surviving spouses | Varies by loan program; ask our team | Varies by loan program; ask our team |
| Down payment | $0 down payment with full VA entitlement, subject to lender approval | Varies by loan program; ask our team | Varies by loan program; ask our team |
| Mortgage insurance | No monthly PMI; the VA guaranty replaces it, but a VA funding fee applies unless exempt | Varies by loan program; ask our team | Varies by loan program; ask our team |
| Upfront government fee | VA funding fee, unless exempt | Varies by loan program; ask our team | Varies by loan program; ask our team |
How VA entitlement works
Full entitlement
No VA loan limit applies; lender approval still required.
Partial entitlement
Some entitlement is in use; the county loan limit affects how much you can borrow before a down payment is needed, subject to lender approval.
Entitlement restoration
Entitlement can be restored after a prior VA loan is paid off and the property is sold, or in other cases; see the entitlement hub.
Buying a home with a VA loan
VA Home Loan Purchase Options
Single-family home
A home you live in, or up to four units if you live in one of them.
VA-approved condo
A condo in a VA-approved condo project.
Manufactured home
A manufactured home that meets VA and lender requirements.
A VA purchase loan helps you buy a home you'll live in as your primary residence. VA home loans are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval.
- A single-family home, or a home with up to four units if you live in one of them
- A condo in a VA-approved condo project
- A manufactured home that meets VA and lender requirements
- A new home built with a one-time close construction loan
What to expect with a VA purchase loan
- Down payment: $0 down payment with full VA entitlement, subject to lender approval. Loan limits may apply with partial entitlement.
- Mortgage insurance: no monthly PMI. The VA guaranty replaces it, but a VA funding fee applies unless you're exempt.
- Closing costs: VA limits the closing costs veterans may be charged. On a purchase loan, the VA funding fee is the only cost VA lets you finance, and the seller may agree to pay some closing costs.
- The home itself: a VA appraisal checks the home's value and VA's minimum property requirements.
- Your finances: the lender reviews your credit, income, debts and residual income.
Not an application. Any credit review comes at a later step.
What affects your VA loan rate
VA Home Loan Rate Factors
Credit profile
Your credit history and scores.
Loan term
How many years you take to repay.
Discount points
An optional upfront charge that can lower your rate.
- Credit profile: your credit history and scores.
- Loan term: how many years you take to repay.
- Loan amount and type: purchase, IRRRL and cash-out loans can be priced differently.
- Discount points: an optional upfront charge that can lower your rate.
- Lock period: how long your rate is held before closing.
- Market conditions: rates move with the broader mortgage market.
- DTI and residual income: how your income compares with your debts and living costs.
How to compare VA loan offers
- Ask each lender for a Loan Estimate for the same loan amount and term.
- Request offers on the same day with the same lock period, since rates change.
- Read the fees section, including any discount points and lender charges.
- Check how the VA funding fee is shown, and whether you're exempt.
Get a VA rate quote for your scenario
Talk with our team · (855) 956-4040
Not an application. Any credit review comes at a later step.
VA funding fee and closing costs
VA Home Loan Closing Costs
VA funding fee
A one-time charge on most VA loans.
Fee exemption
Some veterans and surviving spouses do not pay the fee.
Closing costs
VA limits the closing costs veterans may be charged.
VA funding fee chart (Effective April 7, 2023)
| Loan / use | Down payment | Funding fee |
|---|---|---|
| Purchase, first use | less than 5% | 2.15% |
| Purchase, first use | 5% or more | 1.5% |
| Purchase, first use | 10% or more | 1.25% |
| Purchase, subsequent use | less than 5% | 3.3% |
| Purchase, subsequent use | 5% or more | 1.5% |
| Purchase, subsequent use | 10% or more | 1.25% |
| IRRRL | any | 0.5% |
| Cash-out refinance | first use / subsequent use | 2.15% / 3.3% |
Source: VA.gov funding fee and closing costs.
Who doesn't pay the funding fee: You don't pay the VA funding fee if, for example, you receive VA compensation for a service-connected disability, you're a surviving spouse receiving Dependency and Indemnity Compensation (DIC), you have a proposed or memorandum rating issued before closing that says you're eligible for compensation based on a pre-discharge claim, or you're an active-duty service member who provides evidence of a Purple Heart on or before closing. Your Certificate of Eligibility (COE) shows your exemption status.
Fees VA borrowers can never be charged
- Attorney's fees of the lender
- Brokerage fees
- Finder's fees
- Real estate agent commissions
- Termite report (except in specific refinance cases)
How to get a VA home loan: step by step
- Start your VA loan inquiry
Start your VA loan inquiry: share your goals and basic details.
- Get your COE
Request your Certificate of Eligibility yourself or let our team request it for you.
- Prequalification review
Prequalification review by the lender (subject to credit review)
- Shop and make an offer
Make an offer on a home you'll live in. Timing varies.
- VA appraisal and underwriting
A VA appraisal checks value and minimum property requirements; the lender verifies credit, income, assets and the property. Timing varies.
- Close
Review your Closing Disclosure, sign your documents and get your keys. Timing varies.
Not an application. Any credit review comes at a later step.
VA loan calculators
- Estimate what you may be able to afford with your VA benefit.
- See how the VA funding fee may affect your loan amount.
- Check county loan limits if you have partial entitlement.
- VA home affordability calculator
- VA mortgage calculator
- VA funding fee calculator
- VA closing costs calculator
- VA loan limit calculator
- VA entitlement hub
- Income
- Monthly debts
- County
- Entitlement status
- Rate
- Enter the rate from your quote
VA home affordability calculator
Estimates only, based on the information you entered. Not a quote or approval. Your actual down payment depends on lender approval and your county loan limit.
Don't have a rate? Get a VA rate quote for your scenario
$0 down payment with full VA entitlement, subject to lender approval. Loan limits may apply with partial entitlement.
Frequently asked questions
What is a VA home loan?
A VA home loan is a mortgage made by a private lender and partly backed by a guaranty from the U.S. Department of Veterans Affairs. It's available to eligible service members, veterans and some surviving spouses who will live in the home.
Do VA loans require a down payment?
$0 down payment with full VA entitlement, subject to lender approval
Do VA loans have PMI?
No. VA loans don't require private mortgage insurance. The VA guaranty replaces it, but a VA funding fee applies unless you're exempt.
Who is eligible for a VA home loan?
Service members, veterans and National Guard and Reserve members who meet VA's service requirements may be eligible, along with some surviving spouses. You also need to meet the lender's credit and income requirements and plan to live in the home.
How do I get my Certificate of Eligibility (COE)?
You can request your COE online through VA, by mail, or through your lender. Our VA lending team can often request it for you.
Who doesn't have to pay the VA funding fee?
You don't pay the VA funding fee if, for example, you receive VA compensation for a service-connected disability, you're a surviving spouse receiving Dependency and Indemnity Compensation (DIC), you have a proposed or memorandum rating issued before closing that says you're eligible for compensation based on a pre-discharge claim, or you're an active-duty service member who provides evidence of a Purple Heart on or before closing. Your Certificate of Eligibility (COE) shows your exemption status.
Can I finance closing costs on a VA purchase loan?
No, not on a purchase or construction loan. VA lets you finance only the VA funding fee into the loan amount. You pay other closing costs when your loan closes, though you can negotiate with the seller to pay some of them. Ask our team for a Loan Estimate to see your actual figures.
Does National VA Loans publish VA rates?
No. VA loan rates depend on your credit, loan type, term, lock period and market conditions, so we don't publish rates on this page. Start a VA loan inquiry and our team will review a rate for your scenario.
Can I use a VA loan more than once?
Yes. You may be able to use your VA home loan benefit again after you sell your home and pay off the prior VA loan, and in some cases while you still have one. Your remaining entitlement affects how much you can borrow. $0 down payment with full VA entitlement, subject to lender approval.
Can I build a home with a VA loan?
One-time close VA construction loans are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval.
Not an application. Any credit review comes at a later step.
Related VA loan options
Other VA loan paths that may fit a different goal or property type.
- VA IRRRL — Streamline refinance path for an existing VA loan when a rate or payment change is the goal.
- VA cash-out refinance — Refinance and potentially access home equity, subject to appraisal and underwriting.
- VA renovation loan — Learn how VA renovation financing works and what lenders may require.
- VA construction loan — One-time close construction-to-permanent financing for building a new primary residence.
- VA jumbo loan — Learn how VA loans work above county limits.
- VA manufactured home loan — Financing path for eligible manufactured housing when the home and land meet VA rules.
Sources
- VA.gov — VA funding fee and loan closing costs
- VA.gov — Eligibility for VA home loan programs
- VA.gov — VA-backed purchase loan
- VA.gov — How to request a VA home loan COE
- VA.gov — Buying a home with a VA-backed loan
- eCFR, 38 CFR 36.4313, Charges and fees
Related guides
- VA loan eligibility requirements
- VA Certificate of Eligibility (COE) guide
- VA loan process
- VA mortgage calculator
- VA home affordability calculator
- VA loans by state
- VA IRRRL
- VA cash-out refinance
- VA construction loan
- All VA loan tools
VA home loans offered through Stride Bank, N.A. (NMLS #466690) · Equal Housing Lender · Secure Online Process
Loans offered through Stride Bank, N.A. (NMLS #466690)
VA home loans are offered through Stride Bank, N.A. (NMLS #466690), subject to lender approval. Not all borrowers will qualify. Program terms and requirements can change. This page is for general education and isn't a loan offer, rate quote or commitment to lend.
National VA Loans: VA home loans offered through Stride Bank, N.A. (NMLS #466690). Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency.
Equal Housing Lender.