How to Qualify for a VA Loan
VA loans require eligible military service, a 580 to 620 credit score from most lenders, and a Certificate of Eligibility. Zero down payment and no PMI.
VA loans are the cheapest path to homeownership for eligible military service members. Qualify by meeting service requirements, obtaining a Certificate of Eligibility, and meeting a lender's credit and income standards (usually 580 to 620 credit). The benefits: zero down payment, no PMI, no loan limit with full entitlement, and competitive rates. The full process takes 30 to 45 days.
Who Qualifies: The Service Requirement
VA loan eligibility is service-based, set by federal law and administered by the Department of Veterans Affairs. The minimum service depends on when and how you served.
| Service category | Minimum service | |---|---| | Active duty (post-9/11) | 90 continuous days | | Active duty (peacetime, 1980-2001) | 181 continuous days | | Active duty (wartime, e.g., Vietnam, Gulf War) | 90 days during wartime | | National Guard or Reserves | 6 years, or 90 days active duty in wartime | | Discharge | Honorable, or general under honorable conditions | | Surviving spouse | Spouse died in line of duty or from service-connected disability |
Some special situations apply. Service Academy graduates count their training. Public Health Service officers and NOAA Commissioned Corps qualify. Foreign military veterans who served with U.S. forces in WWII may qualify. The VA Home Loans page at https://www.va.gov/housing-assistance/home-loans/ has the full eligibility matrix.
Step 1: Get Your Certificate of Eligibility (COE)
The COE is the official document that proves your service meets VA requirements. Three ways to get it:
- Through your lender. Most VA-experienced lenders pull the COE electronically through the VA's Web Automated Reference Material System in minutes. This is the fastest method.
- Online through eBenefits. Log in at va.gov/eBenefits and request the COE yourself. Free, takes a few minutes to a few days.
- By mail with VA Form 26-1880. Slowest path, used only when the other two fail.
You will also need:
- DD Form 214 for veterans (Certificate of Release or Discharge from Active Duty)
- Statement of Service signed by commanding officer for active duty
- NGB Form 22 and NGB Form 23 for National Guard
- Annual Statement of Retirement Points for Reserves
If your DD 214 was lost, request a replacement through the National Archives at archives.gov/veterans.
Step 2: Confirm Lender Credit and DTI Standards
The VA sets no federal minimum credit score. Each lender sets its own. Common minimums in 2026:
| Lender type | Minimum credit | |---|---| | Veterans United, Navy Federal, USAA | 580 to 620 | | Online lenders (Rocket, LoanDepot) | 580 to 620 | | Big banks (Chase, Wells Fargo) | 620 to 640 | | Some credit unions | 620 |
If your credit is in the 580 to 620 range, shop multiple VA-specialty lenders. The rate may be slightly higher than at 720-plus, but VA loans at 580 are usually more competitive than conventional loans at the same score.
Debt-to-income ratio guidance: VA prefers 41 percent or less. Many lenders approve up to 50 percent with strong residual income. Some VA-specialty lenders approve up to 60 percent for borrowers with high residual income.
Step 3: Understand Residual Income
This is unique to VA loans. Beyond DTI, the VA requires a minimum residual income, defined as cash left over each month after:
- Proposed mortgage payment (PITI)
- All other debt payments (cars, student loans, credit cards, child support)
- Federal and state taxes
- Social Security and Medicare
- Estimated maintenance and utilities
The minimum residual income varies by family size and region:
| Family size | Northeast | Midwest | South | West | |---|---|---|---|---| | 1 | $450 | $441 | $441 | $491 | | 2 | $755 | $738 | $738 | $823 | | 3 | $909 | $889 | $889 | $990 | | 4 | $1,025 | $1,003 | $1,003 | $1,117 | | 5 | $1,062 | $1,039 | $1,039 | $1,158 |
If your DTI is over 41 percent but your residual income exceeds the minimum by 20-plus percent, lenders can often approve. If your DTI is under 41 percent and your residual income is strong, approval is straightforward.
Step 4: Calculate Your VA Entitlement
Entitlement is the amount the VA guarantees to the lender if you default. Most borrowers have full entitlement, which means the VA guarantees up to 25 percent of the loan, allowing zero down payment on loans up to (and above) the conforming limit.
You have full entitlement if any of the following:
- You have never used a VA loan
- You have paid off and sold a previous VA-financed home
- You had a previous VA loan foreclosed but repaid the loss in full
You have reduced entitlement if you have an active VA loan and want to take out a second one. The math gets complex; a VA-specialty lender will calculate it for you. In most cases, you can still buy with zero down up to a certain price.
The 2026 conforming loan limit is $766,550 in most counties, higher in high-cost areas. Loans below the limit usually require no down payment with full entitlement. Loans above the limit may require a partial down payment on the excess amount.
For high-cost areas, see the jumbo mortgage hub for context on VA jumbo financing.
Step 5: Choose a VA-Specialty Lender
VA loans have nuances that conventional lenders miss. Use a lender with high VA volume:
- Veterans United Home Loans. Largest VA lender by volume. Strong COE processing, residual income expertise.
- Navy Federal Credit Union. Best for active duty and Navy/Marine veterans. Excellent rates and service.
- USAA. Auto-bundled with banking and insurance, but mortgage volume has declined; still a solid option.
- Marcus Mortgage. See our Marcus mortgage review.
- PenFed Credit Union. Open to all (anyone can join), competitive VA pricing.
- Online lenders. Better, Rocket, LoanDepot all offer VA loans, sometimes with slightly higher rates but faster underwriting.
Get 3 Loan Estimates inside a 14-day window. Compare APR (including funding fee), lender fees, and closing speed. See how to compare mortgage offers.
Step 6: Find a VA-Eligible Property
VA appraisers check the property meets Minimum Property Requirements (MPR). The home must be:
- Safe, structurally sound, and sanitary
- Have working utilities (water, sewer or septic, electric, heat)
- Have a roof in good condition
- Have no peeling lead paint on pre-1978 homes
- Have a permanent, accessible heat source for each room
- Have no active termite damage in termite-prone regions (south, southeast)
- Have safe access to and from the property
The VA appraiser also sets the Notice of Value, which is the maximum loan amount the VA will guarantee. If the appraised value is below the contract price, you have three options:
- Renegotiate the price to the appraised value
- Bring cash to cover the gap (the VA does not loan above appraised value)
- Walk away using the VA Amendment to Contract clause
The VA Amendment is built into VA purchase contracts. If the appraisal comes in low, you can cancel with your earnest money returned.
VA Funding Fee
The VA funding fee replaces mortgage insurance and funds the VA loan program. The fee depends on:
- Type of service (regular military vs. Guard/Reserves)
- Down payment percentage
- First-time use vs. subsequent use
| Scenario | Funding fee | |---|---| | First-time use, 0% down (regular military) | 2.15% | | First-time use, 0% down (Guard/Reserves) | 2.4% | | First-time use, 5% down | 1.5% | | First-time use, 10% down | 1.25% | | Subsequent use, 0% down | 3.3% | | Subsequent use, 5% down | 1.5% | | Subsequent use, 10% down | 1.25% |
Exempt from the funding fee:
- Veterans receiving VA disability compensation
- Veterans with a service-connected disability rating
- Surviving spouses receiving Dependency and Indemnity Compensation
- Purple Heart recipients (active duty)
The fee can be financed into the loan, so it does not require cash at closing. On a $300,000 loan, the first-time-use fee at 0 percent down is $6,450, rolled into the loan.
VA Cash-Out Refinance and IRRRL
VA loans have two refinance products:
- VA Cash-Out Refinance. Up to 100 percent loan-to-value (in some cases) for borrowers needing cash from equity. Full underwriting, new appraisal, funding fee applies.
- VA Interest Rate Reduction Refinance Loan (IRRRL). Streamline refinance for existing VA loans. No income verification, no appraisal in most cases, lower funding fee (0.5 percent). Must lower rate or convert ARM to fixed.
See how to refinance your mortgage for the full refinance process and the cash-out hub for cash-out specifics.
Common Mistakes
Using a non-VA-specialty lender. Conventional lenders miss entitlement nuances, mishandle the COE, or struggle with the VA appraisal process. Use a VA-experienced lender.
Underestimating the funding fee. A 2.15 percent fee on a $400,000 loan is $8,600. Financed into the loan, it adds to your monthly payment for 30 years. Factor it into your budget.
Skipping the residual income check. A high DTI does not kill a VA loan if residual income is strong. Have your lender run the calculation before assuming you do not qualify.
Buying a home with major property issues. Old roofs, peeling lead paint, and structural problems all kill VA appraisals. Pre-screen listings with your agent.
Letting the funding fee exemption slip. Disabled veterans must provide the VA award letter to qualify for the exemption. Without it, the lender charges the fee.
What to Do Next
If you have not requested your COE, do that today through your VA-specialty lender. If you are not sure of your service eligibility, check the VA Home Loans page at https://www.va.gov/housing-assistance/home-loans/.
For home shopping, use the mortgage payment calculator including the funding fee. Read how to get pre-approved for a mortgage before applying.
If you also want to compare against zero-down alternatives, see how to buy a house with no money down.
Citations
- VA Home Loans, U.S. Department of Veterans Affairs: https://www.va.gov/housing-assistance/home-loans/
- Consumer Financial Protection Bureau, VA loan guide: https://www.consumerfinance.gov/
- HUD, military and veteran resources: https://www.hud.gov/
FHA loans require 3.5 percent down with a 580 credit score, or 10 percent with 500. Apply through any FHA-approved lender. The full process takes 30 to 45 days.
VA loans and USDA loans allow 0 percent down for eligible buyers. Down payment assistance programs can cover the rest. Closing costs still apply but are often negotiable.
Compare 3 lenders across rate, APR, lender fees, and closing speed. The right pick saves $5,000 to $20,000 over a 30-year loan, not just the lowest advertised rate.
Compare Loan Estimates side by side using APR, total cash to close, lender fees, and 5-year cost. The lowest rate is rarely the cheapest loan.
A pre-approval verifies your income, credit, and assets so sellers take you seriously. Apply with 2 to 3 lenders within 14 days to protect your credit score.
Lower your mortgage payment by refinancing, recasting, removing PMI, appealing taxes, or shopping insurance. Each lever saves $50 to $400 per month.
Pay biweekly, add 1/12 of your payment monthly, recast after lump sums, or refinance to 15 years. Each cuts 4 to 15 years and saves $30,000 to $150,000 in interest.
Refinancing replaces your current mortgage with a new one. Refinance when rates drop 0.75 percent or more and you will stay long enough to recoup closing costs.
Cancel PMI by requesting it at 80 percent LTV with an appraisal, waiting for auto-cancellation at 78 percent, or refinancing into a non-PMI loan. Saves $50 to $300 per month.
Step-by-step guides to pre-approval, refinance, PMI, and getting the lowest rate.