Purchase Loans
VA loans are one of the strongest homebuying benefits in the U.S. mortgage market — zero down payment, no monthly mortgage insurance, and competitive rates typically in line with or better than conventional. They’re guaranteed by the U.S. Department of Veterans Affairs and available to eligible veterans, active-duty service members, National Guard and Reserve members who meet service-length thresholds, and surviving spouses of service members who died on active duty or from service-connected causes. The guarantee is what makes VA loans so flexible. The VA doesn’t lend money directly; it insures a portion of the loan so private lenders can approve borrowers without a down payment and without monthly mortgage insurance — two of the biggest upfront and monthly costs on every other program. The tradeoff is a one-time VA funding fee, which ranges from 1.4% to 3.6% of the loan amount depending on your down payment, first or subsequent use, and service type. Borrowers with 10%+ VA disability ratings, certain Purple Heart recipients, and eligible surviving spouses are exempt from the funding fee entirely.
VA loans are available to eligible veterans, active-duty service members, National Guard and Reserve members meeting service-length thresholds, and surviving spouses.
No monthly mortgage insurance is required — a meaningful savings compared to every other low-down-payment program.
No down payment is required in most scenarios, though making a down payment reduces the funding fee and lowers your total payment.
The VA funding fee ranges from 1.4% to 3.6% of the loan amount depending on down payment, first or subsequent use, and service type. It’s usually rolled into the loan balance.
Borrowers with 10%+ VA disability ratings, certain Purple Heart recipients, and eligible surviving spouses are exempt from the funding fee entirely.
A Certificate of Eligibility (COE) proves your VA benefit is available. Your lender can pull it through VA’s portal in minutes, or you can request it directly at VA.gov.
VA underwriting uses residual income — money left over after major expenses — in addition to debt-to-income ratio. Residual income is what lets VA borrowers carry higher DTIs than other programs.
Zero down, 2.15% funding fee on a zero-down purchase. The classic single-use case — no other program offers better upfront cost.
VA’s no-down structure solves short-timeline moves where saving for 20% isn’t realistic. Pair with seller concessions to keep cash-to-close near zero.
Remaining entitlement can still cover a new home, though a down payment may be required depending on county loan limits and unused entitlement.
Funding fee is waived entirely — the program becomes zero down, no PMI, no funding fee. No conventional or FHA option can match the total cost.
Full VA benefit with fee exemption, plus state-level benefits that may stack depending on the state of residence.
Base loan $400,000 + 2.15% funding fee ($8,600) financed into the loan → balance $408,600. Monthly principal and interest about $2,583 at a 6.5% rate. No PMI. Total PITI near $3,300 after taxes and insurance.
Funding fee waived — loan balance stays at $400,000. Monthly principal and interest about $2,528. Same no-PMI savings. Total PITI near $3,225 — roughly $75/month less than the non-exempt scenario.
Down payment $25,000. Funding fee drops to 1.5% on first-time use with 5%+ down = $7,125. Loan balance $482,125. Monthly principal and interest about $3,048. Still no PMI.
Example figures use illustrative rates and are for educational purposes only. Actual rates, terms, and costs depend on credit profile, market conditions, and property specifics.
VA beats conventional on upfront cost almost every time for eligible borrowers — zero down, no PMI, no monthly MI. Conventional wins only when the funding fee would be unusually high (subsequent use, large zero-down loans) or when the borrower already has 20%+ down.
VA wins in every meaningful way for eligible borrowers. VA has no monthly mortgage insurance; FHA’s is permanent on low-down-payment loans. VA’s funding fee is also usually lower than FHA’s combined UFMIP + MIP cost over time.
Both offer zero-down financing. USDA is only available in rural-designated areas with income caps. VA works anywhere for eligible borrowers, with no income ceiling.
The IRRRL is a VA-to-VA rate-reduction refinance with minimal documentation — no appraisal or income verification in most cases. Use it when you just want a lower rate; use a full VA refinance when you also need cash out or want to change terms materially.
Explore the programs va loans — 0% down for veterans & active duty are most often compared against, plus the Purchase Loans hub for the full lineup and today's mortgage rates for current pricing context.
In most eligible scenarios, yes. VA loans are specifically designed to allow qualifying service members and veterans to purchase a home without a down payment.
No. Unlike FHA and conventional loans with small down payments, VA loans do not require monthly mortgage insurance. This can make a significant difference in your monthly payment.
Eligibility is based on your service history. We can help you determine your eligibility and walk through the Certificate of Entitlement process when you’re ready.
The COE is proof that you have VA loan benefits available. Your lender can pull it through VA's portal in minutes, or you can request it yourself at VA.gov. Veterans need their DD-214 to request it; active-duty service members need a Statement of Service.
First-time use: 2.15% with zero down, 1.5% with 5–10% down, 1.25% with 10%+ down. Subsequent use: 3.3% with zero down, with the same reduced rates when a down payment is made. Guard/Reserve and regular military have been priced the same since 2020. Exempt borrowers pay nothing.
No — VA loans are for primary residences only. But you can buy a 2–4 unit property if you occupy one of the units as your primary residence, and rental income from the other units can sometimes help you qualify. That’s the closest VA gets to investment financing.
There’s a misconception that VA appraisals are harsher or closings are slower. With a VA-experienced loan officer and a clean financial file, VA closings are on par with conventional. If a seller pushes back, a strong pre-approval letter and willingness to cover minor appraisal-flagged repairs usually closes the gap.
You have basic entitlement ($36,000) plus bonus entitlement up to 25% of the conforming loan limit. If you sold a prior VA-financed home and paid off the loan, entitlement fully restores. If you still have a VA loan on a prior home, remaining entitlement may require a down payment on the new home depending on loan size.
Yes. A VA cash-out refinance can refinance a non-VA loan into a VA loan — popular for eligible borrowers who bought before realizing VA was an option or who want to shed FHA's permanent MIP. You’ll pay a funding fee but drop mortgage insurance entirely.
An IRRRL is VA-to-VA only, streamlined, with no cash out, minimal documentation, and often no new appraisal. A VA cash-out refinance is a full refinance with income verification and appraisal, can refi a non-VA loan into VA, and allows equity access.
If you've used VA benefits before, check your remaining entitlement with the VA entitlement calculator to see your no-down-payment purchase power and any required down payment for your target price. Then estimate your monthly payment in the mortgage calculator — the VA funding fee is included so your PITI reflects real program costs. Or use the affordability calculator to work backwards from your target monthly payment.