Full Entitlement
You have full entitlement if:
- You have never used your VA benefit, or
- You used it and paid the loan off in full and sold the property, or
- You used it and had your entitlement restored.
MORTGAGE LEARNING CENTER | VA LOANS
The VA Loan Guide for Veterans: How to Buy a Home With No Down Payment
A complete guide to VA home loan benefits, eligibility, the funding fee, and how veterans, active-duty service members, and surviving spouses buy homes with no down payment.
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What is a VA loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and qualifying surviving spouses. VA loans allow eligible borrowers with full entitlement to buy a primary residence with no down payment and no monthly mortgage insurance. Most VA loans include a one-time funding fee, which many disabled veterans are exempt from.
Key Takeaways
If you only have a minute, these are the points that matter most for your purchase.
No down payment required for eligible borrowers with full entitlement.
No monthly private mortgage insurance, ever.
The VA sets no minimum credit score; lenders set their own, commonly around 580 to 620.
A one-time funding fee applies in most cases and can be financed into the loan.
Veterans receiving VA disability compensation are generally exempt.
The benefit can be reused, and in some cases you can hold more than one VA loan at once.
VA loans are for owner-occupied primary residences, not investment or vacation homes.
What's Inside This Guide
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SECTION 01
Who Is Eligible for a VA Loan?
Eligibility is based on your service history. You generally qualify if you are:
| Service Category | Typical Minimum Service |
|---|---|
| Active duty | 90 continuous days |
| Veterans (post-1990) | 24 continuous months, or the full period called to active duty (at least 90 days) |
| National Guard and Reserve | 6 years of service, or 90 days of active-duty service (including at least 30 consecutive days under Title 32 orders) |
| Surviving spouses | Spouse died in service or from a service-connected disability, and you have not remarried (some exceptions apply after age 57) |
Veterans discharged early for a service-connected disability may qualify with less time.
TIP
You prove eligibility with a Certificate of Eligibility (COE), which your loan officer can usually pull electronically in minutes.
SECTION 02
The Benefits of a VA Loan
You earned this benefit. Most veterans in your situation are surprised how much it can do.
$0 down payment.
Finance 100% of the purchase price with full entitlement.
No monthly mortgage insurance.
FHA and low-down-payment conventional loans both charge it. VA does not.
Flexible credit.
The VA sets no minimum score, and past credit challenges are reviewed in context.
Limits on closing costs.
The VA restricts certain fees a veteran can be charged.
Seller concessions.
Sellers can contribute toward closing costs and certain other expenses, up to 4% in concessions plus normal closing costs.
No prepayment penalty.
Pay extra or pay off early at any time.
Assumable.
A qualified buyer may be able to take over your VA loan when you sell.
Reusable.
Use the benefit again and again over your lifetime.
Just imagine keeping your savings intact for furniture, repairs, and reserves instead of handing it all over at closing. That is what a $0 down VA loan can do.
SECTION 03
How the VA Funding Fee Works
The VA funding fee is a one-time charge that keeps the VA home loan program running for future service members. It replaces monthly mortgage insurance, and it can be paid at closing or financed into the loan.
The fee is a percentage of the loan amount. It depends on how much you put down and whether this is your first use of the benefit.
VA Purchase Loan Funding Fees
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Other VA Loan Types
VA IRRRL (streamline refinance)
0.5%
VA cash-out refinance
2.15% / 3.3%
first use / subsequent use
Who is exempt from the funding fee?
Many borrowers pay no funding fee at all. You are generally exempt if you are one of the following:
Veterans receiving VA compensation for a service-connected disability
Veterans eligible for disability compensation but receiving retirement or active-duty pay instead
Service members with a proposed or memorandum rating of disability before closing
Purple Heart recipients on active duty
Surviving spouses receiving Dependency and Indemnity Compensation
TIP
The good news is that if you have a disability rating, the exemption can make a VA loan one of the lowest-cost mortgages available anywhere.
SECTION 04
VA Loan Requirements
- Certificate of Eligibility
Confirms your entitlement. - Credit
No VA minimum. Lenders commonly look for 580 to 620. - Debt-to-income ratio
The VA uses 41% as a guideline, not a hard cap. Higher ratios can be approved with strong residual income. - Residual income
The money left each month after major expenses, based on family size and region. This is a key VA strength test. - Occupancy
You must intend to live in the home as your primary residence, generally within 60 days of closing. - Property
The home must meet VA minimum property requirements (safe, sound, and sanitary), verified by a VA appraisal. - Property types
Single-family homes, VA-approved condos, manufactured homes on permanent foundations, and 2 to 4 unit properties when you live in one unit.
SECTION 05
Understanding Your VA Entitlement
Entitlement is the amount the VA guarantees on your loan. With full entitlement, there is no VA loan limit, so you can borrow as much as a lender approves with $0 down.
Remaining Entitlement
If you still have an active VA loan, you may have remaining entitlement that lets you buy another primary residence. In that case, county loan limits affect whether a down payment is needed.
County loan limits matter
A down payment may be needed when using remaining entitlement.
TIP
A licensed broker can calculate this for you from your COE.
SECTION 06
How to Get a VA Loan, Step by Step
01
Talk with a broker who knows VA loans. We confirm eligibility and compare VA options across many lenders.
02
Get your Certificate of Eligibility. We can usually request it electronically.
03
Get pre-approved. Typically one to two business days with complete documents.
04
Choose a VA-savvy real estate agent who knows how to write strong VA offers.
05
Make an offer. Ask for seller concessions where the market allows.
06
Order the VA appraisal. It confirms value and minimum property requirements.
07
Final Step
Underwriting and closing. Most VA loans close in 21 to 30 days after an accepted offer and complete documents.
DO THIS TODAY
Talk with a broker and request your Certificate of Eligibility.
SECTION 07
VA Refinance Options
Already own a home? The VA offers two main ways to refinance.
VA IRRRL
Interest Rate Reduction Refinance Loan
A streamline refinance for existing VA loans. Typically no appraisal and reduced documentation.
The new loan must provide a real benefit, and the existing loan must meet seasoning rules (at least 210 days and six monthly payments).
VA Cash-Out Refinance
Access home equity
Refinance any loan type into a VA loan and access equity.
Available to eligible veterans with lender limits on loan-to-value.
NEXT READ
Read our Refinance Guide for help deciding when refinancing makes sense.
SECTION 08
VA Loan Myths
MYTH
"VA loans take forever to close."
FACT
Most VA loans close in 21 to 30 days, the same as other loans.
MYTH
"Sellers won't accept VA offers."
FACT
A well-prepared VA offer with a strong pre-approval competes well. Your agent and broker make the difference.
MYTH
"You can only use your VA loan once."
FACT
The benefit is reusable for life.
MYTH
"VA appraisals are impossible to pass."
FACT
They require a safe, sound, and sanitary home. Most move-in ready homes pass.
SECTION 09
VA Loan FAQs
Is a VA loan really $0 down?
Yes, for eligible borrowers with full entitlement. You will still have closing costs, which seller concessions or lender credits may partly cover.
Does a VA loan have mortgage insurance?
No monthly mortgage insurance. Most borrowers pay a one-time funding fee instead, which can be financed.
What credit score do I need for a VA loan?
The VA does not set a minimum. Lenders set their own, commonly 580 to 620, and a broker can find lenders that fit your profile.
Can I use a VA loan more than once?
Yes. Entitlement can be restored after a VA loan is paid off, and in some cases you can have two VA loans at once.
Can I buy a rental property with a VA loan?
Not a pure rental. VA loans are for primary residences. You can buy a 2 to 4 unit property, live in one unit, and rent the others.
Can surviving spouses get a VA loan?
Yes, qualifying surviving spouses can be eligible and are generally exempt from the funding fee if they receive Dependency and Indemnity Compensation.
How long does a VA loan take to close?
Typically 21 to 30 days after an accepted offer and complete documents.
Can I get a VA loan after bankruptcy or foreclosure?
Often yes, after a waiting period, commonly two years after a Chapter 7 discharge, with re-established credit.
SECTION 10
What Happens Next?
Mortgage Marketplace | NMLS #2367229
(503) 210-1480
info@mmhomeloans.com
mortgagemarketplace.loans
VA Purchase Loan Funding Fees
Mortgage Marketplace is an independent mortgage brokerage headquartered in Salem, Oregon, with a second office in Eugene. We compare loan options from over 70 wholesale lenders, so you see more than one bank’s menu.
About Mortgage Marketplace
Mortgage Marketplace is an independent mortgage brokerage headquartered in Salem, Oregon, with a second office in Eugene. We compare loan options from over 70 wholesale lenders, so you see more than one bank’s menu.
- Independent Brokerage, Many Lenders | Licensed in 7 States | NMLS #2367229 | Decades of Combined Experience
- Licensed in Oregon, California, Washington, Idaho, Texas, Florida, and Montana
- Salem office: 3723 Fairview Industrial Dr SE, Suite 190, Salem, OR 97302
- Phone: (503) 210-1480 | Email: info@mmhomeloans.com
- Website: mortgagemarketplace.loans
- Housing Oregon’s Heroes: discounted loan fees for teachers, first responders, health care workers, law enforcement, military and veterans. housingoregonsheroes.com
More Free Guides in the Mortgage Learning Center
First-Time Home Buyer Guide | VA Loan Guide | FHA Loan Guide | FHA vs. Conventional | Why Use a Mortgage Broker | DSCR Loan Guide | Refinance Guide | Oregon Home Buying Guide | Down Payment Assistance Guide
Important Disclosures
This guide is for educational purposes only and is not a commitment to lend or an offer of credit. All loans are subject to borrower qualification, property evaluation, sufficient equity for refinances, underwriting guidelines, and final credit approval. Program guidelines change without notice.
Mortgage Marketplace LLC, NMLS #2367229 (nmlsconsumeraccess.org).
Equal Housing Opportunity. For current interest rates and payment estimates, use our mortgage calculator or speak with a licensed mortgage broker; this guide intentionally contains no rate quotes or payment examples. Mortgage Marketplace is not affiliated with or endorsed by the U.S. Department of Veterans Affairs.
Last updated: November 2026
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