What is a VA loan and who qualifies?

A VA loan is a home loan program guaranteed by the U.S. Department of Veterans Affairs. It's available to eligible veterans, active-duty service members, and surviving spouses — and it's one of the most powerful financing tools in residential real estate.

Key VA loan benefits

• No down payment required in most cases
• No private mortgage insurance (PMI) — this alone saves hundreds per month
• Competitive interest rates — typically lower than conventional rates
• Flexible credit requirements
• Limits on closing costs the buyer can be charged
• No prepayment penalty

Who qualifies for a VA loan?

• Active-duty service members who have served 90 continuous days
• Veterans who meet minimum service requirements (generally 181 days in peacetime, 90 days during wartime)
• National Guard and Reserve members with 6 years of service or 90 days of active duty under Title 10
• Surviving spouses of service members who died in service or from a service-connected disability

What is a VA funding fee?

Most VA buyers pay a funding fee — a one-time cost paid at closing or rolled into the loan. It ranges from 1.25% to 3.3% depending on your down payment and whether it's your first VA loan use. Some borrowers are exempt: those receiving VA disability compensation, surviving spouses of veterans who died in service, and active-duty Purple Heart recipients.