VA loans are widely considered the best mortgage product available to those who qualify. No down payment, no private mortgage insurance, competitive interest rates, and flexible credit requirements make VA loans a significant financial advantage for eligible veterans, active-duty service members, and surviving spouses.
Compare VA loan rates from multiple lenders: Get VA loan quotes on LendingTree and see how much you can save.
Who Qualifies for a VA Loan?
Eligibility is based on military service. The Department of Veterans Affairs sets the service requirements, and you verify them through a Certificate of Eligibility (COE).
Veterans
- 181 days of active service during peacetime, OR
- 90 days of active service during wartime, OR
- Discharged for a service-connected disability regardless of time served
Active-Duty Service Members
- 90 continuous days of active service
National Guard and Reserve Members
- 6 years in the Selected Reserve or National Guard, OR
- 90 days of active-duty service (including 30 consecutive days) under certain titles
Surviving Spouses
- Unremarried surviving spouses of service members who died in service or from a service-connected disability
- Surviving spouses who remarry after age 57 or after December 16, 2003 may also qualify
Key Benefits of VA Loans
No Down Payment Required
VA loans allow 0% down on any loan amount (for borrowers with full VA entitlement). This is one of the only zero-down mortgage programs with no income or location restrictions.
No Private Mortgage Insurance
Conventional loans require PMI when you put down less than 20%. FHA requires mortgage insurance for the life of the loan. VA loans have neither. The absence of PMI alone can save $100–$300 per month on a typical loan.
Competitive Interest Rates
Because the VA guarantees a portion of the loan against default, lenders take on less risk. VA loan rates are typically 0.25–0.5% lower than comparable conventional rates — saving thousands of dollars over the life of a 30-year loan.
Limited Closing Costs
The VA limits the fees lenders can charge VA borrowers. Certain fees are not allowed, including attorney fees charged by the lender, escrow fees, and some other third-party charges. This reduces out-of-pocket costs at closing.
No Prepayment Penalty
You can pay off a VA loan early without penalty — valuable if you refinance or sell before the term ends.
Assumable
VA loans can be assumed by a new buyer when you sell, which could be a selling advantage if your rate is below current market rates.
VA Funding Fee
Most VA borrowers pay a one-time funding fee that compensates for the absence of PMI and keeps the program self-sustaining. The fee is typically financed into the loan.
| Down Payment | First-Time VA Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a $300,000 loan with no down payment for a first-time VA user, the funding fee is $6,450 financed into the loan — bringing the total loan to $306,450.
Funding fee exemptions: Veterans receiving VA compensation for service-connected disabilities are exempt. Surviving spouses of veterans who died in service or from a service-connected disability are also exempt.
VA Entitlement and Loan Limits
Borrowers with full VA entitlement (never used a VA loan, or have paid off and restored their entitlement) have no loan limit — they can borrow any amount with 0% down, subject to lender approval and ability to repay.
Borrowers with remaining/reduced entitlement (still have an active VA loan or sold a home without restoring entitlement) may have loan limits based on the county’s conforming loan limit. Ask your lender to run the entitlement calculation for your situation.
How to Get Your Certificate of Eligibility (COE)
The COE proves to lenders that you meet VA service requirements. Three ways to get it:
- Online: Apply at va.gov through the eBenefits portal — the fastest method for veterans who were discharged on or after January 1, 1950
- Through your lender: Most VA-approved lenders can pull your COE directly through the VA’s automated system during the loan application
- By mail: Complete VA Form 26-1880 and mail to the VA Eligibility Center — slower but works for all service types
VA Loan Property Requirements
The VA requires an appraisal by a VA-approved appraiser who also checks that the property meets VA Minimum Property Requirements (MPRs). MPRs ensure the home is safe, structurally sound, and sanitary. Common VA appraisal issues include:
- Peeling paint (especially lead paint in homes built before 1978)
- Roof condition with less than 2 years remaining life
- Inoperable mechanical systems (HVAC, water heater)
- Standing water or drainage problems
VA Loan Process: Step by Step
- Get your COE (or have your lender pull it)
- Get pre-approved with a VA-approved lender
- Find a home and make an offer
- The lender orders a VA appraisal (takes 10–14 days on average)
- Complete underwriting and submit to the VA for guaranty
- Close on the home
VA loans typically close in 30–45 days — similar to conventional loans. Some markets have VA-specialized real estate agents who understand the process and can help negotiate with sellers who may be less familiar with VA appraisals.
VA Loan vs. Conventional Comparison
| Feature | VA | Conventional |
|---|---|---|
| Down payment | 0% | 3–20% |
| PMI | None | Required below 20% down |
| Rate | Typically 0.25–0.5% lower | Market rate |
| Funding fee | 2.15% (first use, 0% down) | None |
| Min credit score | 580–620 (lender requirement) | 620 |
| Who can use | Eligible military only | Anyone |
For eligible buyers, VA almost always wins unless you have a large down payment (10%+) and a very strong credit score, in which case the conventional rate difference narrows.
Lenders That Offer VA Loans
| Lender | Est. Rate Range | Min Credit Score | Min Down Payment | Best For |
|---|---|---|---|---|
| LendingTree | Varies by lender | 580 (FHA) / 620 (conv.) | 3.5% (FHA) / 3% (conv.) | Comparing multiple offers at once |
| Rocket Mortgage | Competitive market rates | 580 (FHA) / 620 (conv.) | 3.5% (FHA) / 1% (ONE+ program) | Fast digital approval process |
| Better.com | Competitive market rates | 620 | 3% | Low-fee online experience |
| New American Funding | Competitive market rates | 500 (FHA) / 620 (conv.) | 3.5% (FHA) / 3% (conv.) | Buyers with lower credit scores |
Compare VA loan rates from multiple lenders on LendingTree to find the best deal for your service record and financial profile.
Bottom Line
If you are an eligible veteran, active-duty service member, or surviving spouse, the VA loan should be your first consideration for any home purchase. The combination of zero down payment, no PMI, and competitive rates represents a significant financial benefit that can save tens of thousands of dollars over the life of the loan. Get your COE, find a VA-approved lender, and compare rates before committing.
Get VA loan rate quotes on LendingTree to see what you qualify for today.