For a lot of veterans and active-duty service members, VA loans are one of the crucial helpful advantages of army service. Backed by the U.S. Division of Veterans Affairs, these loans make homeownership extra attainable via decrease upfront prices, no non-public mortgage insurance coverage, and versatile credit score necessities.
With Veterans Day proper across the nook, it’s a very good time to spotlight this highly effective program and perceive the way it works. On this Redfin information, we’ll clarify who qualifies, what the primary advantages are, and the way to take advantage of your VA mortgage when shopping for or refinancing a house.
What’s a VA mortgage?
A VA mortgage is a sort of mortgage assured by the U.S. Division of Veterans Affairs. It’s designed to assist eligible service members, veterans, and surviving spouses purchase or refinance a house with favorable mortgage phrases, typically with no down cost required.
Whereas the VA doesn’t lend cash instantly (besides in uncommon circumstances), it ensures a portion of the mortgage. This implies if a borrower defaults, the VA will cowl a part of the lender’s loss. Due to this assure, lenders can provide aggressive rates of interest and versatile qualification requirements.
Why the VA mortgage program exists
The VA mortgage program was established in 1944 as a part of the unique GI Invoice, designed to assist service members transition to civilian life and construct monetary stability. Since then, it has helped greater than 28 million veterans and their households purchase, construct, or refinance houses.
VA loans in at the moment’s market
In keeping with a current Redfin report, VA loans have turn into barely extra frequent because the housing market tilts in patrons’ favor and sellers develop extra open to affords with decrease down funds. Nationwide, 7.3% of mortgaged homebuyers used a VA mortgage in August 2025, up from 6.5% a 12 months earlier—the best share for that month since 2019.
These loans are most prevalent in communities with a powerful army presence. In Virginia Seaside, VA, greater than 43% of mortgaged patrons used a VA mortgage in August—the best share of any main U.S. metro and the biggest on report for the realm. Jacksonville, FL (17%), Washington, D.C. (17%), San Diego, CA (15%), and Las Vegas, NV (12%) additionally rank among the many prime markets for VA financing. VA loans are most typical in these locations as a result of they every have a big army presence.
Who qualifies for a VA mortgage?
Chances are you’ll be eligible for a VA mortgage in the event you meet at the least one of many following:
Service members & veterans
90 consecutive days of energetic service throughout wartime, or
181 days of energetic service throughout peacetime, or
6+ years within the Nationwide Guard or Reserves.
Surviving spouses
Unremarried surviving spouses of veterans who died in service or from a service-connected incapacity might also qualify.
Certificates of Eligibility (COE)
You’ll want a COE from the VA to show eligibility. Most lenders will help you request this on-line, or you’ll be able to apply via the VA’s eBenefits portal.
Tip: Even in the event you’ve used your VA mortgage profit earlier than, you should still qualify once more via restoration of entitlement.
Forms of VA loans
Not each VA mortgage is for getting a house – some are designed that will help you refinance, renovate, and even faucet into your property’s fairness. Irrespective of your monetary state of affairs or objectives, right here’s a take a look at the primary varieties of VA loans and what every affords.
Your lender will help you determine which VA mortgage sort matches your monetary objectives.
Sort of VA Mortgage
Goal
Key Options
VA Buy Mortgage
Purchase a major residence
No down cost required most often, no PMI, aggressive charges.
VA Money-Out Refinance
Refinance your present mortgage and faucet into house fairness
Entry as much as 90% of your property’s worth as money, can be utilized to refinance non-VA loans.
VA Curiosity Fee Discount Refinance Mortgage (IRRRL)
Refinance an current VA mortgage to decrease your rate of interest
Streamlined course of with minimal documentation; typically no appraisal or revenue test required.
VA Jumbo Mortgage
Purchase a costlier house that exceeds conforming mortgage limits
No formal VA mortgage restrict in case you have full entitlement; lender requirements might fluctuate.
Native American Direct Mortgage (NADL)
Purchase, construct, or enhance a house on Federal Belief Land
Provided instantly by the VA (not non-public lenders); out there to eligible Native American veterans.
VA Renovation Mortgage (much less frequent)
Purchase or refinance and fund repairs or enhancements
Combines buy/refinance with renovation prices into one VA-backed mortgage.
VA mortgage limits
The VA doesn’t cap how a lot you’ll be able to borrow, except you have got impacted entitlement, that means a part of your VA profit is already getting used on one other mortgage or wasn’t totally restored.
When mortgage limits do apply, they’re usually based mostly on the traditional mortgage restrict, which for 2025 is $806,500 for one-unit properties in most areas of the U.S. Lenders additionally use these standard limits as the place to begin for VA jumbo loans.
Some high-cost areas have larger limits, giving certified debtors extra flexibility. And if you could borrow greater than your native restrict permits, you should still qualify for a VA jumbo mortgage, which doesn’t require a down cost and may provide a decrease charge than a standard jumbo mortgage.
VA mortgage advantages
VA loans provide a number of benefits that make them particularly interesting:
No down cost required most often
No non-public mortgage insurance coverage (PMI)
Decrease common rates of interest in comparison with standard loans
Versatile credit score and revenue requirements
Streamlined refinance choices via VA IRRRL (Curiosity Fee Discount Refinance Mortgage)
Assumable loans, that means a professional purchaser can take over your VA mortgage
For instance, on a $400,000 house, a standard mortgage with 5% down would require $20,000 upfront – plus PMI. With a VA mortgage, you may pay $0 down and skip PMI solely, saving 1000’s within the first 12 months alone.
VA mortgage necessities
Whereas VA loans are recognized for being versatile, you’ll nonetheless want to fulfill a couple of key necessities:
Credit score and revenue: The VA units common tips, however lenders set up their very own requirements. Most search for a credit score rating of 620 or larger, although some might approve decrease scores with sturdy financials.
Property: The house have to be your major residence and meet the VA’s Minimal Property Necessities (MPRs).
Funding charge: Most debtors pay a VA funding charge, which ranges from 1.25% to three.3% of the mortgage quantity relying on service historical past and down cost. Some veterans are exempt (e.g., these with service-connected disabilities).
Residual revenue: Lenders consider whether or not you have got sufficient revenue left over after month-to-month bills, a novel VA requirement to assist stop foreclosures.
Wish to estimate your month-to-month VA mortgage funds? Use our mortgage calculator to see how your mortgage quantity, rate of interest, and time period have an effect on your cost.
Can you employ your VA mortgage profit greater than as soon as?
Sure, you should use your VA mortgage profit a number of occasions. You possibly can restore your full entitlement by promoting your present house, or you should use partial entitlement to purchase one other property in the event you preserve your first one. This flexibility is particularly helpful for army households who relocate incessantly.
VA loans vs. different mortgage sorts
Right here’s how VA loans examine to traditional and FHA loans at a look:
Function
VA Mortgage
Standard
FHA
Down cost
0% (most circumstances)
3%+
3.5%+
PMI / MIP
No PMI
Required if
Required
Credit score rating
Versatile
Sometimes 620+
580+
Funding charge
Sure, 1.25–3.3%
No
Upfront MIP (1.75%) + annual
Assumable
Sure
Uncommon
Sure
VA loans usually provide the most effective phrases for many who qualify, particularly when in comparison with standard or FHA loans.
>>Learn: Forms of House Loans
The VA mortgage course of: Step-by-step information
The VA mortgage course of is much like a standard mortgage, with a couple of key variations alongside the best way. Right here’s a fast overview of the VA mortgage course of:
Step
What Occurs
Key Particulars
1. Verify eligibility
Verify your service historical past and get a COE.
You possibly can apply on-line or have your lender request it.
2. Discover a VA-approved lender
Work with a financial institution, credit score union, or mortgage firm.
The VA doesn’t lend instantly (apart from Native American Direct Loans).
3. Get preapproved
Lender critiques credit score, revenue, and entitlement.
This helps you set a funds and strengthen affords.
4. Home hunt
Store for a house inside your preapproval quantity.
The house have to be your major residence.
5. VA appraisal
The VA requires a particular appraisal.
Ensures the property meets VA minimal property necessities (MPRs).
6. Underwriting
Lender verifies paperwork and finalizes the mortgage.
Could ask for more information earlier than closing.
7. Closing
You signal closing paperwork and get the keys.
Chances are you’ll pay a one-time VA funding charge (might be rolled into the mortgage).
>>Learn: Find out how to Purchase a Foreclosed House With a VA Mortgage
When a VA mortgage won’t be proper
VA loans are an ideal possibility for a lot of veterans and repair members, however they’re not ultimate for each state of affairs. Chances are you’ll wish to take into account one other mortgage sort if:
You’re shopping for a trip or funding property: VA loans are just for major residences. For a second house or rental, you’ll want a standard mortgage.
The house doesn’t meet VA property requirements: Houses should meet the VA’s security and livability necessities. A fixer-upper might not qualify except it’s financed with a VA renovation mortgage.
The funding charge might offset your financial savings: As famous earlier, most debtors pay a one-time VA funding charge. For smaller mortgage quantities or when making a big down cost, that charge can cut back a number of the mortgage’s monetary benefits.
Even when a VA mortgage isn’t the correct match now, you should still qualify sooner or later. For instance, if a fixer-upper doesn’t meet VA requirements at the moment, you may use a VA renovation mortgage as soon as repairs are full.
Steadily requested questions on VA loans
1. Can I exploit a VA mortgage for a second house or funding property?
No. VA loans are just for major residences, although you’ll be able to reuse your profit for a brand new major house.
2. Are VA loans just for first-time patrons?
No. You should use the profit a number of occasions so long as you have got remaining entitlement.
3. Can I get a VA mortgage with adverse credit?
Presumably. The VA doesn’t set a minimal rating, however most lenders search for round 620. Some might approve decrease with sturdy compensating elements.
4. How lengthy does it take to shut on a VA mortgage?
On common, 30–45 days, much like standard loans, although the VA appraisal can add a little bit of time.
5. Do I want mortgage insurance coverage with a VA mortgage?
No. As an alternative of PMI, you’ll usually pay a one-time funding charge, which might be financed.
