The VA loan has no monthly mortgage insurance at any loan-to-value. That single feature is worth more than most borrowers realise.
A VA-guaranteed home loan is available to eligible service members, veterans and certain surviving spouses. Three features set it apart: no down payment, no monthly mortgage insurance, and no loan limit where you have full entitlement.
Eligibility depends on when and how long you served.
Active-duty service member: 90 continuous days, without a break in service.
Gulf War era to present (2 August 1990 onwards): 24 continuous months; or the full period you were called to active duty, with a minimum of 90 days; or 90 days if discharged under a qualifying exception; or fewer than 90 days if discharged for a service-connected disability.
1980 to 1990: 24 continuous months; or the full called period with a minimum of 181 days; or 181 days under a qualifying exception; or fewer for a service-connected disability.
Vietnam era (5 August 1964 – 7 May 1975): a minimum of 90 total days, or fewer if discharged for a service-connected disability.
Korean War and post-WWII eras: generally 181 or 90 total days depending on the specific period, with service-connected disability exceptions.
National Guard: 90 days of non-training active-duty Title 10 service; or 6 creditable years and still serving; or 6 creditable years with an honourable discharge. Reserve follows the same standard.
Surviving spouses: may qualify if receiving certain types of Dependency and Indemnity Compensation, or if married to a service member who is missing in action or a prisoner of war.
The COE proves your entitlement to the lender. Three ways to get one:
VA says plainly that mail requests take longer. Use one of the first two.
There is no monthly mortgage insurance, but there is a one-time funding fee, which can be financed into the loan.
Rates, effective 7 April 2023 and current as at September 2026:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more (under 10%) | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Cash-out refinance: 2.15% first use, 3.3% subsequent. IRRRL (interest rate reduction refinance): 0.5%.
Note the jump at subsequent use with under 5% down — 3.3% against 2.15%. Putting 5% down drops it to 1.5%, which on a second VA loan is a substantial saving.
You are exempt if any of these apply:
If you believe you are exempt, make sure the lender knows before closing. Refunds after the fact are possible but slow.
This is where VA loans are misunderstood.
With full entitlement, no VA loan limit applies. VA states it directly: "you don't have a loan limit as long as you can afford the loan" and the appraisal supports the price.
Basic entitlement shows as $36,000 on your COE, relevant for loans up to $144,000. Above that, bonus entitlement applies and VA guarantees 25% of the loan amount.
County loan limits only matter where your entitlement is reduced — because you have an existing VA loan, or a prior default. In that case the county FHFA one-unit conforming limit is used to compute your remaining bonus entitlement.
You have full entitlement if you have never used it, or you have repaid a previous VA loan in full and no longer own the property, or you repaid a claim amount in full.
A minimum credit score. VA's requirement is that you "meet our — and your lender's — standards for credit, income." Every credit score figure you see quoted for VA loans, commonly 580 to 640, is a lender overlay, not a VA rule. Different lenders set different floors, which is a reason to shop around rather than accept the first decline.