If you have served in the U.S. military, you have access to one of the best mortgage programs available: the VA loan. No down payment. No private mortgage insurance. Competitive rates. And a limit on the fees lenders can charge you. First-time buyers with military service should understand this benefit before looking at any other loan option.
VA loans are available through private lenders, and rates vary. LendingTree lets you compare VA loan offers from multiple lenders to make sure you are getting the best rate your benefit can get you.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. The VA does not lend money directly — it guarantees a portion of the loan, which reduces the lender’s risk and allows them to offer better terms to eligible borrowers.
The VA loan program was created in 1944 as part of the GI Bill to help veterans transition back to civilian life. Today it remains one of the strongest mortgage benefits available to active duty service members, veterans, and eligible surviving spouses.
Who Is Eligible for a VA Loan?
Eligibility is based on military service. You generally qualify if you meet one of the following:
- Active duty service members: Currently serving with at least 90 continuous days of service (wartime) or 181 days during peacetime.
- Veterans: Served the minimum required period and were not discharged dishonorably. Generally 90 days during wartime or 181 days during peacetime. Those who served fewer days due to service-connected disability may still qualify.
- National Guard and Reserve members: At least 6 years of service, or 90 days of active duty under Title 10 orders. Rules changed under the National Defense Authorization Act — check current VA eligibility guidance.
- Surviving spouses: Unremarried surviving spouses of veterans who died in service or from a service-connected disability may be eligible. Some remarried surviving spouses also qualify under specific conditions.
To use the benefit, you need a Certificate of Eligibility (COE). You can get this through the VA’s eBenefits portal, through your lender, or by mailing VA Form 26-1880. Most VA-approved lenders can request your COE electronically during the pre-approval process.
VA Loan Requirements
Credit Score
The VA does not set a minimum credit score, but most VA-approved lenders require at least 580 to 620. Lenders set their own overlays on top of VA guidelines. With a higher score, you will typically qualify for a lower rate and face fewer documentation requirements.
If your score needs work, see our guide on first-time buyer credit score requirements for actionable steps to improve your score.
Debt-to-Income Ratio
The VA uses a residual income test rather than a strict DTI cap. Residual income is the amount of money left over after all monthly expenses (mortgage, debts, taxes, utilities) are paid. The VA sets minimum residual income standards by family size and region. Generally, lenders also look for a back-end DTI below 41%, though exceptions are made with strong residual income.
Occupancy
VA loans are for primary residences. You must certify your intent to occupy the home as your primary residence within a reasonable time after closing (typically 60 days). Spouses can fulfill the occupancy requirement for active duty members who are deployed.
Property Requirements
The home must meet VA Minimum Property Requirements (MPRs). These standards ensure the property is safe, structurally sound, and sanitary. A VA-approved appraiser will assess the home as part of the loan process. Unlike FHA, VA does not require a specific down payment or mortgage insurance — the appraisal mainly focuses on condition and value.
VA Loan Costs
VA loans come with a VA funding fee, which is a one-time charge paid to the VA to support the program for future borrowers:
- First use, no down payment: 2.15% of the loan amount
- First use, 5% or more down: 1.5%
- First use, 10% or more down: 1.25%
- Subsequent use, no down payment: 3.3%
Veterans with a service-connected disability rating of 10% or more are exempt from the funding fee. Surviving spouses of veterans who died in service or from service-connected causes are also exempt.
The funding fee can be rolled into the loan balance. On a $300,000 first-use loan with no down payment, the funding fee is $6,450 — which becomes part of the loan if you choose to finance it.
Even with the funding fee, VA loans typically cost less over time than FHA or conventional loans for buyers with less than 20% down, because there is no ongoing PMI payment.
VA Loan vs. Other First-Time Buyer Loan Options
| Lender | Loan Type | Min Down Payment | Mortgage Insurance | VA Fee Exempt? |
|---|---|---|---|---|
| LendingTree | VA, FHA, USDA, conventional | 0% (VA/USDA) | None (VA) / Required (FHA/conv <20%) | Varies by disability status |
| Rocket Mortgage | VA, FHA, conventional | 0% (VA) | None (VA) | Ask loan officer |
| Better.com | Conventional, FHA | 3% | Required below 20% | N/A (not a VA lender) |
| New American Funding | VA, FHA, USDA, conventional | 0% (VA) | None (VA) | Ask loan officer |
VA Loan Benefits vs. FHA and Conventional
VA loan advantages:
- No down payment required (for most buyers)
- No PMI — saves hundreds of dollars per month on larger loans
- VA limits lender fees — the VA does not allow lenders to charge excessive fees
- Competitive rates, often below market for equivalent credit profiles
- No prepayment penalty
- VA IRRRL (Interest Rate Reduction Refinance Loan) for easy future refinancing
VA loan limitations:
- Only available to eligible military borrowers
- VA funding fee (waived for disabled veterans)
- Property must meet VA MPRs — some sellers are hesitant about VA appraisals in competitive markets
- Loan limits for second-use without full entitlement restored
VA Loan Entitlement
Your VA entitlement is the amount the VA guarantees on your loan. Most first-time VA buyers have full entitlement, which means there is no loan limit — you can borrow as much as a lender will approve at zero down payment (as of 2020, conforming loan limits were eliminated for VA loans for borrowers with full entitlement).
If you have used a VA loan before and not fully restored your entitlement (by paying off or selling the previous home), partial entitlement rules and county loan limits may apply. Your lender can help you calculate your available entitlement from your COE.
How to Apply for a VA Loan
- Obtain your Certificate of Eligibility (COE): Through eBenefits, your lender, or by mail. Most lenders handle this automatically.
- Find a VA-approved lender: Not all lenders offer VA loans. Look for lenders with strong VA expertise. LendingTree can connect you with VA-approved lenders.
- Get pre-approved: Gather your pay stubs, W-2s, and bank statements. See our full guide on how to get pre-approved for a mortgage.
- Find a qualifying property: Single-family homes, townhomes, condos (on the VA-approved condo list), and multi-family properties (up to 4 units if you occupy one) all qualify.
- VA appraisal and underwriting: The VA appraisal happens after your offer is accepted. Allow extra time — VA appraisals can take longer in busy markets.
- Close the loan: Typical closing timelines are 30 to 45 days, similar to conventional loans.
Making the Most of Your VA Benefit
The VA loan is the best mortgage program available for eligible buyers — period. The combination of zero down payment and no PMI alone can save you tens of thousands of dollars over the life of a loan compared to FHA. If you are eligible, explore this option before any other.
Start by comparing rates. Check current VA loan rates on LendingTree to see where you stand. For lenders with strong VA programs and experience with military buyers, New American Funding and Rocket Mortgage are both worth comparing.
For more on the overall homebuying process, see our complete first-time home buyer guide for 2026 and our breakdown of all loan types for first-time buyers.