VA Loan FAQ

One of the most widely utilized benefits available to U.S. veterans and servicemembers is the VA home loan. However, despite their popularity, many military members still have questions regarding how VA loans work, what it takes to be eligible, and more.

The mortgage process, regardless of what type of loan you choose, can be complicated and feel overwhelming especially if you are a first-time homebuyer or new to using your VA benefits. In this article, we will answer some of the most common VA loan questions so you can get started on the path to homeownership.

Is it hard to get a VA home loan?

Like any other type of mortgage, the steps to securing financing for a home purchase takes time and involves a lot of paperwork. However, collecting your information and preparing ahead of applying can set you up for a smooth process in the long run.

The U.S. Department of Veterans Affairs website is a great tool for researching your benefits and where you can apply for your Certificate of Eligibility (COE). A COE is the document you will submit to your VA-approved lender to prove you meet the necessary VA eligibility requirements. 

How long do you have to serve to be eligible for a VA loan?

The length of service required by the VA to be eligible for a VA home loan will vary slightly based on whether you are a veteran, active duty, or have served or are currently serving in the National Guard or Reserve. You must meet at least one of the following requirements:

• Veterans who served after August 2, 1990 are eligible if you served for 24 continuous months

• Active duty servicemembers are eligible after 90 continuous days of service

• National Guard members and Reservists are eligible after 90 continuous days of service

• A surviving spouse of a veteran or the spouse of a veteran who is missing in action or being held as a prisoner of war (POW) may also qualify. Review eligibility requirements on the U.S. Department of Veteran Affairs website. 

What credit score is needed for a VA loan?

While there is no minimum credit score required by the VA, most lenders will require that you have a score of 620 or higher to qualify for VA loan financing. It is important to talk with your chosen lender about their specific requirements.

Can you get a VA loan while deployed?

Yes, you can secure your VA loan even while you are deployed. And thanks to the internet and the latest virtual home tour technology, you can research homes and submit mortgage documents. All you need is an Internet connection.

What types of lenders offer VA loans?

Even though VA loans are government-backed mortgages, they are not financed directly through the U.S. Department of Veterans Affairs. You must apply with private banks, credit unions, or mortgage companies who will approve the loan and issue the financing. However, only VA-approved lenders are able to provide this loan product.

While quite a few of these VA-approved lenders offer a variety of loan products, there are those who specialize in VA home loans. To find the best VA mortgage lender, it is important to consider a lender’s overall experience. Here are some questions you can ask lenders on your list:

• How long have they been a VA-approved mortgage lender?

• How many VA loans do they originate per year?

• What percentage of their loan portfolio is dedicated to VA loans?

Is there a limit for how much you can borrow with a VA loan?

VA loans do not have their own financing limits and as of 2020, you will not have a loan limit if you have full entitlement. However, there are general conforming loan limits that do apply to borrowers with reduced entitlement.

These limits are the same as the Federal Housing Finance Agency (FHFA) limits and how much you can borrow will vary depending on the county you are buying in. The standard limit as of 2026 is $832,750 for a single-family home. In higher-cost areas, the loan limit may be as much as $1,249,125. For more information and specific county loan limits you can visit the FHFA website.

Are there closing costs associated with VA loans?

Though the VA ensures that you do not need a down payment to secure a VA loan, there are still closing costs that you will have to budget for at closing. These costs will be determined by your lender. Your interest rate and other fees associated with the loan will vary depending on the lender you have chosen, so it is important to research multiple VA-mortgage lender options before you decide on who you want to finance your home purchase.

What is the VA funding fee?

The VA funding fee is a single payment that is paid up front at closing, or can be rolled into the total cost of your mortgage. Since the VA home loan program does not require down payments or monthly mortgage insurance, the purpose of the fee is to lower the overall cost for U.S. taxpayers.

How much is the VA funding fee?

On average, the fee will cost between 1.25% to 3.3% of your total loan amount. However, the exact amount you will be required to pay depends on the loan amount and other factors like:

• The type of VA loan you choose

• If it is your first VA loan or a subsequent use of the benefit

• Your down payment amount

Can you build a home with a VA loan?

Yes, there are VA construction loans that help qualifying veterans finance the purchase of land and the construction of newly built homes. However, not all lenders provide them, and the requirements include:

• Hiring a licensed and VA-approved builder or contractor

• Providing a complete set of construction plans and blueprints to your lender when applying

• Finding a VA-qualified appraiser

Can you refinance a VA loan?

Yes, you will have the option to refinance your VA loan. The VA offers two different refinance options: the VA IRRRL (interest rate reduction refinance) or the VA cash-out refinance.

If you are a veteran or servicemember, VA mortgages can be a great option for your home purchase needs. These loans offer a more affordable path to homeownership with no down payment requirement, competitive interest rates, and no private mortgage insurance (PMI).

However, it is important to take time to compare rates and costs associated with multiple mortgage types. Discussing all of your home loan options with a trusted lender will help to ensure you make the best choice for your situation.