Everything you need to know about the VA Loan (initially)
So, you’re a veteran or active duty servicemember and you want to buy a home. You’re going to want to read this - and then you’re going to want to contact a lending professional (with experience with VA loans) to get pre-qualified.
Here’s the quick and dirty on VA loans:
In 2026, the VA loan remains one of the most powerful home financing tools for eligible military members, veterans, and surviving spouses.
Core Benefits
$0 Down Payment: Most eligible borrowers can purchase a home with no down payment, provided they have full entitlement.
No PMI: Unlike conventional or FHA loans, VA loans do not require monthly Private Mortgage Insurance, significantly lowering monthly costs.
Lower Rates: Because the VA guarantees a portion of the loan, private lenders can often offer interest rates below market averages.
Limited Fees: The VA strictly caps lender-origination fees at 1% and prohibits certain closing costs from being charged to the veteran.
Eligibility & Requirements
Service Criteria: Generally requires 90 consecutive days of active duty during wartime, 181 days during peacetime, or 6 years in the National Guard/Reserves.
Certificate of Eligibility (COE): Borrowers must obtain this document through the VA eBenefits portal or their lender to prove entitlement.
Primary Residence: The property must be used as your main home. You generally must move in within 60 days of closing.
Credit & Income: While the VA sets no minimum credit score, most lenders require a 620 FICO in 2026 (though some allow 580). Lenders focus heavily on "residual income"—the cash left over after all major monthly bills.
Costs & Fees
VA Funding Fee: A one-time fee that can be rolled into the loan. For 2026, first-time users with $0 down typically pay 2.15%, while subsequent users pay 3.3%.
Exemption: Veterans with a 10% or higher service-connected disability rating are exempt from this fee.
Closing Costs: Even with no down payment, you must budget for appraisal, title insurance, and prepaid taxes.
Seller Concessions: Sellers can pay all of your normal closing costs and up to 4% of the home's value in additional concessions (like paying off your debts or the funding fee).
2026 Loan Limits
For borrowers with full entitlement, there are no official loan limits—you can borrow as much as your income and credit allow with $0 down. For those with partial entitlement, the standard 2026 conforming limit is $832,750 in most areas, with higher limits in high-cost counties.
Other Considerations
You know that any home you buy using a VA loan must be your primary residence, but does that mean you have to sell or refinance the loan if you move? Nope!
You can use the VA loan multiple times - which means when Uncle Sam stations you in Charleston, SC you can use the VA loan to buy a home, and when Uncle Sam moves you and your family to Columbus, MS you can use the VA loan again to buy a home there as well. The best part: You aren’t required to sell your first home. You can turn it into a rental.
Many servicemembers buy a home at every duty station, and at the end of their career they have quite the rental portfolio built. You will need to consider the implications of having multiple mortgages, as the payments will count against your debt-to-income ratio and many lenders will not allow you to count rental income until it has been filed on your taxes (or you’ve been collecting rent for about a year).
As you move forward in the homebuying process, your next step is to contact a loan professional (or 2 or 3 to shop around for the best rates) and ask for a pre-approval letter. Ask if they are familiar with VA loans.
Pro-tip: Ask a question you already know the answer to (or are at least familiar with) to see a) if they answer correctly and b) how well they explain it. You’ll want someone who knows what they are doing and is willing to walk you through the process so you don’t get blindsided by fees or timelines down the line.
Hope this helps!
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