VA loan: Requirements: eligibility, costs and how to apply

VA loans are backed by the U.S. Department of Veterans Affairs and designed to make homeownership more attainable for eligible servicemembers, veterans, and their surviving spouses. For those who qualify, VA loans¹ offer powerful perks like zero down payment, lower interest rates, and no private mortgage insurance (PMI). These reduced costs and flexible underwriting can translate into major long-term savings that can make a sizable difference over the life of a loan.

VA loans are not available to all home buyers. Before you apply for a VA loan, it’s important to understand who is eligible, how this special government-backed financing works, and its benefits and requirements.

Key takeaways:

• A VA loan is a government-backed mortgage option that allows eligible veterans, active-duty service members, and surviving spouses to buy, build, or refinance a primary residence with no down payment or PMI.
• To qualify, you’ll need a Certificate of Eligibility (COE) from the VA to prove sufficient military service and meet your lender's specific credit, income, and debt requirements.
• You’ll still need to pay standard closing costs and the mandatory VA funding fee, typically 0.5% to 3.3% of the loan amount.

VA loan requirements at a glance

Your eligibility for a VA loan depends on three main categories - your military service, your personal financial standing, and the condition of the home itself.

VA eligibility requirements

VA loans are available to a broad range of military-affiliated borrowers, including:

• Veterans
• Active-duty service members
• Currently or formerly activated National Guard members
• Reserve members
• Certain surviving spouses

Lender requirements

While the VA guarantees the loan should the borrower default, it does not issue the mortgage or set credit approval standards. Private lenders fund the mortgages and conduct the underwriting process to evaluate your credit score, debt-to-income (DTI) ratio, employment history, and residual income to ensure you can comfortably afford your monthly payments.

Property requirements

The home you purchase must meet strict safety, structural, and sanitation rules known as Minimum Property Requirements (MPRs). The property must also be occupied as your primary residence shortly after closing.

Who qualifies for a VA loan?

Let’s look at exactly who VA loans are available to.

VA loan service requirements

To be eligible, you must meet at least one service-related criterion:

• Active-duty members: Served at least 90 continuous days on active duty.
• Peacetime veterans: Served 181 continuous days of active service during non-war periods.
• Wartime veterans: Served 90 total days of active service during designated wartime windows.
• National Guard and Reserve members: Completed at least 90 days of active service under Title 32 (with at least 30 consecutive days) or completed 6 creditable years in the Selected Reserve or Guard.

Wartime or peacetime definitions depend on when you served. For more information, see the VA’s eligibility guidelines.

Surviving spouse requirements

You’re also eligible for a VA loan if you’re the spouse of a service member who lost their life in the line of duty or as the result of a service-connected disability. You generally can’t be remarried, although there are exceptions. There are also other requirements for a spouse getting a VA loan.

What is a Certificate of Eligibility (COE)?

A Certificate of Eligibility (COE) is a document that shows your mortgage lender that you qualify for a VA home loan. To get a COE, you need to demonstrate proof of service. The proof you need to submit varies based on whether you’re an active-duty military member, a veteran, or have another type of VA loan eligibility.

You can request a COE on the VA website or ask your lender to help secure your COE.

How to request a COE

If you need to secure your certificate of eligibility, there are a few different ways to do it:

• Through your lender: Most approved lenders, including Rocket Mortgage, can access the VA’s online portal and pull your official COE in minutes using your basic military details.
• Online via VA.gov: You can log into your personal portal at VA.gov and request your COE directly.
• By Mail: You can complete VA Form 26-1880 and mail it along with your proof-of-service documentation to the VA regional processing center.

VA loan financial requirements

Once you’ve verified your VA loan eligibility, you need your income, assets, and credit to reflect that you can afford to repay the loan. The property you’re buying also must meet certain requirements. The good news is that VA loans don’t require a down payment as long as the home’s sale price is not higher than its appraised value.

Here are a few of the major requirements VA loans typically include.

Credit score requirements

There’s no universal minimum credit score for VA loans that every lender requires. Each lender sets their own standard. However, you can expect to need a credit score of at least 620 to qualify for a VA loan.

Employment and income requirements

Lenders need to confirm that you have a stable income that will allow you to keep up with your mortgage payments. You will typically present pay stubs covering the last 30 days, two years of W-2 forms, and bank statements.

If you are an active-duty service member, you can include your Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) as qualified monthly income. Self-employed veterans must provide two years of full federal tax returns and business financial statements.

Debt-to-income ratio and residual income

The VA doesn’t impose a minimum income requirement to be met. Instead, lenders use a debt-to-income (DTI) ratio to determine if you can afford the loan you apply for. Your DTI compares monthly debts to gross monthly income. You’ll typically need a DTI that does not exceed 41% to qualify.

If you are an active-duty service member, you may receive a basic allowance for housing (BAH) to help offset the cost of off-base housing. You can use our BAH Calculator to figure out how much your basic housing allowance will be based on your pay grade and duty station.

Reserve funds

Some lenders may also require reserve funds, which are savings that prove the borrower could pay their mortgage payments and bills for several months even if they lose their income. 

VA loan property and occupancy requirements

• Primary residence requirements: The home must be your primary residence within 60 days of purchase, though exceptions exist for deployed or retired service members.
• Eligible property types: VA loans can be used for single-family homes, condos, and manufactured homes. Rocket Mortgage finances manufactured homes built on or after June 15, 1976, that are permanently affixed to the land and have a HUD tag.

VA appraisal and minimum property requirements

Before approving the mortgage, the lender orders an official VA appraisal to:

1. Establish fair market value: Confirms the home is worth the agreed purchase price.
2. Verify minimum property requirements (MPRs): Ensures the property is safe, structurally sound, and sanitary.

Under VA MPRs, the appraiser checks that the home has a working heating system, adequate clean water supply, safe electrical wiring, an intact roof, no active termite infestation, and no exposed lead-based paint. If defects are discovered, they must be repaired before the loan can close.

VA inspection requirements

It’s important to know that a VA appraisal is not the same as an independent home inspection. The appraisal evaluates broad safety and value for the lender, while an independent home inspector conducts an in-depth examination of the home’s condition and safety. The inspection is an important part of the home buying process because it lets the buyer know if there is any damage, safety hazards, or expensive repairs needed.

Costs of a VA loan

Even though VA loans don’t require a down payment, there are still expenses you’ll need to plan for.

VA funding fee

The VA funding fee helps offset program costs for taxpayers. The fee generally ranges from 1.25% to 3.3% of the loan amount, depending on factors such as your type of service, the size of your down payment or amount of equity, whether it’s the first time you’re getting a VA loan, and whether you’re buying or refinancing the property. For VA Streamline refinances², the funding fee is typically 0.5%.

Who is exempt from the VA funding fee

Some borrowers are exempt from the funding fee. These include veterans receiving disability compensation, surviving spouses, and Purple Heart recipients on active duty. For borrowers who do pay the funding fee, it can often be rolled into the loan rather than paid upfront.

Closing costs

Like most loans, VA loans require closing costs, which can include appraisal fees, title charges, and lender fees. Don’t underestimate closing costs because they can add up. You can expect closing costs for a VA loan to range between 3% - 5% of the total loan amount.

How do VA loans work?

VA loans are issued by private lenders and backed by the federal government. When you apply for a VA loan, you work with a lender that’s approved to offer VA-backed mortgages. For instance, Rocket Mortgage is approved to provide VA loans and guide borrowers through the process from application to closing.

When the VA guarantees the loan, it protects the lender in case borrowers default. This reduces the risk for the lender, which allows them to offer more flexible terms, like lower interest rates and less-rigid credit standards. This means you may be able to afford a more expensive home with a VA loan.

Since VA loans are considered a type of nonconforming loan, they don’t have to meet certain underwriting standards set by Freddie Mac and Fannie Mae. This flexibility means that VA loans can be easier to qualify for, especially for borrowers with less-than-perfect credit or little money saved up for a down payment.

VA loan limits

The VA doesn’t limit how much you can borrow, except in cases where a borrower has partial or “impacted” entitlement tied up in another VA loan. But when loan limits do apply to a VA loan, they’re usually based on the conventional loan limit, which for 2026 is $832,750 for one-unit properties in most areas and $1,249,125 in high-cost areas and Alaska, Guam, Hawaii, and the U.S. Virgin Islands.

Lenders also often use the conventional loan limits as the lower bounds for VA jumbo loans. If you need a loan even higher than that amount, you can explore the possibility of a VA jumbo loan, which doesn’t require a down payment and may offer a lower rate than a regular jumbo loan.

Full entitlement and partial entitlement

Whether or not you qualify for a full or partial entitlement will depend on if you’ve used a VA loan before.

• Full entitlement: Granted if you have never used a VA loan, or if you previously paid off a VA loan in full and sold the underlying property. Full entitlement allows you to purchase a property without making a down payment.
• Partial entitlement: Occurs when a portion of your guaranty remains tied up in an existing property. You can still purchase another primary residence using a VA loan, but you may need to make a small down payment if the purchase price exceeds your remaining entitlement limit.

Common types of VA loans

Eligible borrowers can choose from several VA loan options, depending on whether they’re buying, refinancing, or tapping into their home’s equity.

How to apply for a VA loan

Applying for a VA loan is like applying for other loan types, but there are a few key differences. Here are the steps you’ll need to take.

1.  Secure a Certificate of Eligibility (COE)

You’ll need proof of your military service to qualify for a VA loan. Your lender can get your Certificate of Eligibility for you, or you can also visit the VA site to request one. You can also request a paper copy by mail.

2.  Apply for approval

It’s a smart idea to get preapproved early on. This gives you a baseline for determining how much loan you can afford. In addition, it could make you a more competitive buyer. Sellers will know that you are both qualified and serious about buying their home.

3.  Shop for a house and make a purchase offer

Finding a house with a VA loan is like finding a house with any other loan option. However, the property you buy must meet the VA’s minimum property requirements (MPRs) to ensure the home is safe, structurally sound, and sanitary.

Once you find a home you like in your price range, make an offer to buy the home. The seller may accept your offer, reject the offer, or make a counteroffer. Once the offer is accepted, a real estate agent or attorney will draw up a sales contract, also known as a purchase agreement.

4.  Undergo VA appraisal and underwriting

Underwriters from your lender assess your finances and make sure you qualify for a VA loan. The VA will also require an appraisal before they approve the loan. VA appraisals are more involved than appraisals for homes financed with a conventional loan.

During a VA appraisal, the appraiser will check that the home meets the VA’s MPRs and is sanitary, structurally sound, and move-in ready with minimal repairs needed. This protects you, as well as the lender.

5.  Close on your new home

Once the VA appraiser says your new home is safe and sound, it’s time for closing day. You’ll sign a lot of documents, pay any fees yet unpaid, get your loan funded, and receive the keys to your new property.

VA loan benefits

VA loans have many benefits over conventional mortgages, such as a potentially lower interest rate, the absence of a down payment and mortgage insurance requirement, more relaxed credit requirements, and special allowances for disabled veterans. Here are some of the perks of VA loans.

VA loan FAQs

Here are the answers to some frequently asked questions about VA loans.

What would disqualify you from a VA loan?

You may not be eligible for a VA loan if you don’t meet service and discharge requirements, credit and income standards, or don’t occupy the property as your primary residence.

Is it hard to get approved for a VA loan?

VA loans can be easier to qualify for than conventional loans because they don’t require a down payment or private mortgage insurance and allow for higher DTI limits.

Can I use a VA loan more than once?

Yes. The VA loan benefit is a lifelong entitlement. Once you pay off your previous mortgage and sell the home, your full entitlement is restored for your next primary purchase.

The bottom line

If you qualify, a VA loan can be one of the most affordable paths to homeownership. With no down payment requirement, low interest rates, and relaxed qualifying standards, VA loans are a meaningful way to thank members of the military and their loved ones for their service.

You still need to budget for expenses such as closing costs and the VA loan funding fee. But if you are eligible, exploring the benefits and possibilities of a VA loan is a smart first step in any home buying journey. You can visit Rocket Mortgage today to get started.

²The VA Streamline program may have stricter requirements in some states. In order to qualify for the VA Streamline program, you must have a VA loan. The VA Streamline is only available on primary residences. Cash-out transactions are not allowed. In order to qualify for a VA Streamline, a 0.5% minimum reduction in interest rate on the previous fixed-rate loan must occur if the new loan will be a fixed rate or a 2% minimum reduction in interest rate on previous adjustable rate mortgage loan must occur; a minimum of 6 months of consecutive mortgage payments must be paid on the current loan at the time of application. Some states may require an appraisal. Additional restrictions/conditions may apply.

³Refinancing may increase finance charges over the life of the loan