The Complete VA Home Loan Guide (2026)

VA does not lend you the money (the exception is the Native American Direct Loan, covered below). A bank, credit union or mortgage company writes the loan. VA promises the lender that if you default, VA will cover part of the loss. On a loan over $144,000, that guaranty is up to 25% of the loan amount for a veteran with full entitlement, under 38 U.S.C. 3703.

That 25% guaranty replaces the down payment and mortgage insurance a conventional or Federal Housing Administration (FHA) loan would need. The lender is protected either way, so it can offer:

• No down payment, as long as the appraised value supports the price.
• No private mortgage insurance (PMI) and no monthly mortgage-insurance premium.
• Rates that VA's own purchase loan page describes as better than most conventional terms.
• Fewer closing costs, with limits on what you can be charged.
• No penalty for paying the loan off early.

The lender still underwrites you. VA sets no minimum credit score, but lenders do (usually 580 to 620). 38 CFR 36.4340 sets a debt-to-income standard of 41% or less. Above 41% you can still qualify if your residual income (money left after housing and debt payments) beats VA's table by at least 20%, or the lender justifies the loan in writing. For loans of $80,000 or more, the floor for a family of 4 is $1,025 a month in the Northeast, $1,003 in the Midwest and South, and $1,117 in the West.

You need a discharge that is other than dishonorable for every period, and enough service for the era you served in. VA's eligibility page lists the rules this way.

Source: https://www.va.gov/housing-assistance/home-loans/eligibility/, checked September 2026.

If you served less than the 24 months in the 2 most recent eras, you may still qualify if you were discharged for hardship, the convenience of the government, an early out, an involuntary reduction in force, or certain medical conditions.

National Guard and Reserve. You may be eligible with at least 90 days of non-training active duty under Title 10, or 6 creditable years in the Selected Reserve or National Guard.

Surviving spouses. You may be eligible if the veteran is missing in action or a prisoner of war, died in service or from a service-connected disability (with remarriage limits), or was rated totally disabled at death. Spouses receiving Dependency and Indemnity Compensation (DIC) apply with VA Form 26-1817.

The plain-English walkthrough of each group is in the VA home loan eligibility guide for veterans.

The Certificate of Eligibility (COE) is VA's confirmation to the lender that you qualify and shows how much entitlement you have. There are 3 ways to get it, per VA's COE request page:

1. Online through your VA.gov account.
2. Through your lender, who can pull it in seconds from VA's Web LGY system.
3. By mail with VA Form 26-1880, Request for a Certificate of Eligibility. VA says mail requests take longer.

Veterans need a DD214. Active-duty members need a statement of service signed by their commander, adjutant or personnel officer. Guard members who were never activated need NGB Form 22 for each period plus a retirement points statement. Reservists need their latest annual points statement. The Certificate of Eligibility guide covers the paperwork and what to do when the COE shows the wrong entitlement.

Entitlement is the dollar amount VA will guarantee for you. It works in 2 layers, as VA's loan limits page explains:

• Basic entitlement: $36,000, which covers loans of $144,000 or less.
• Bonus entitlement: for loans over $144,000, VA guarantees up to 25% of the loan amount.

Full entitlement means no loan limit. The Blue Water Navy Vietnam Veterans Act of 2019 (Public Law, June 25, 2019) removed the cap on loans VA will guarantee at 25%, so a veteran with full entitlement has no VA loan limit. You can borrow whatever you qualify for with nothing down, as long as the appraisal supports the price. You have full entitlement if you have never used it, or you paid off a prior VA loan and sold the home, or you had a foreclosure or short sale and repaid VA in full.

Reduced entitlement uses the county limit. If you have an active VA loan, or a past loss VA was never repaid for, the county loan limit comes back into play. VA uses the Federal Housing Finance Agency (FHFA) conforming loan limit for the county. For 2026, FHFA set the baseline at $832,750 for a 1-unit home, up $26,250 from 2025. The ceiling in high-cost counties is $1,249,125. In Alaska, Hawaii, Guam and the U.S. Virgin Islands the baseline is $1,249,125 and the ceiling is $1,873,675.

Source: https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026, effective January 1, 2026.

The remaining-entitlement math. VA's own method has 4 steps:

1. Read the entitlement already used from your COE.
2. Find the 2026 limit for the county where the home is.
3. Multiply the county limit by 0.25.
4. Subtract step 1 from step 3. That is your remaining bonus entitlement.

Worked example in a baseline county: you have a VA loan on your first home that used $50,000 of entitlement. $832,750 × 0.25 = $208,187.50. Subtract $50,000 and you have $158,187.50 of entitlement left. Because lenders want entitlement, a down payment, or both to cover 25% of the new loan, you can borrow up to $632,750 ($158,187.50 × 4) with nothing down. For a $700,000 home, the lender would ask for 25% of the $67,250 gap, or $16,812.50, as a down payment.

VA's example on the same page uses a $900,000 county limit and $50,000 used, which leaves $175,000 of entitlement.

Restoring entitlement. Entitlement comes back when the loan is paid off and the home sold. VA's eligibility page for lenders adds a one-time exception: if you paid the loan off but kept the home, entitlement can be restored once in your lifetime. Ask with VA Form 26-1880. County figures are in the 2026 VA home loan limits post.

Watch out: Your COE may show less entitlement than you expect if an old loan was never reported as paid off. Check the "entitlement used" line before you go under contract.

VA's loan types page lists 4 products. Each has its own guide on this site.

Purchase loan. Buys a single-family home up to 4 units, a condo in a VA-approved project, a manufactured home or lot, new construction, or a home you will buy and improve. You must plan to live in it. The VA purchase loan guide walks the whole transaction from pre-approval to keys.

Interest Rate Reduction Refinance Loan (IRRRL). Refinances an existing VA loan to a lower rate or from an adjustable to a fixed rate. You certify that you live in the home or used to. Closing costs can be rolled into the new loan. Funding fee 0.5%. See the IRRRL streamline refinance guide.

Cash-out refinance. Replaces your current mortgage, VA or not, with a VA loan and lets you take equity out for debt, school or repairs. You must live in the home. Funding fee 2.15% on first use, 3.3% after. See the cash-out refinance guide.

Native American Direct Loan (NADL). The only loan VA makes directly. For Native American veterans, or veterans married to a Native American, buying, building or improving a home on federal trust land. VA says the rate starts at 2.5%. Funding fee 1.25% to buy, 0.5% to refinance. See the Native American Direct Loan guide.

The funding fee is a one-time charge that keeps the program running without monthly mortgage insurance. The percentages below have been in effect since April 7, 2023. Congress locked them in through June 8, 2034 in 38 U.S.C. 3729, so the "2026" label means they apply this year, not that they changed. "First use" means you have never had a VA-guaranteed loan; every later loan except an IRRRL counts as subsequent use.

Source: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/, effective April 7, 2023.

On a $400,000 first-use purchase with nothing down, the fee is $8,600; on subsequent use it is $13,200. Putting 5% down cuts it to $5,700 on a $380,000 loan. You can pay the fee at closing, finance it, or have the seller pay it as a concession. Whether the fee is deductible is covered in the VA funding fee tax deduction post.

Who pays nothing. VA's list, matching the statute, is exact. You are exempt if one of these is true:

• You receive VA compensation for a service-connected disability. There is no "10% or more" test; a compensable rating at any level qualifies.
• You are eligible for compensation but receive retirement pay or active-duty pay instead.
• You are a service member with a proposed or memorandum rating issued before the closing date.
• You are a surviving spouse receiving DIC.
• You are on active duty and show evidence, on or before closing, that you received a Purple Heart. This exemption applies to active-duty members only; a veteran with a Purple Heart who is not receiving compensation still pays.

Refunds. If VA later grants compensation with an effective date before your closing date, you can ask for the fee back. Contact your lender or VA's regional loan center at 877-827-3702, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

Minimum Property Requirements (MPRs). 38 CFR 36.4351 makes a loan eligible only if the property meets VA's construction and acceptability standards. In practice the VA-assigned appraiser checks that the home is safe, sound and sanitary, meaning things like working heat, water and electrical systems, a roof that keeps water out, and safe access. Repairs the appraiser flags must be done before closing unless VA grants a waiver. The property requirements guide has the full list and the common fixes.

The appraisal and the Notice of Value (NOV). The lender orders the appraisal through VA, which assigns the appraiser. The appraiser sets a "reasonable value" and reports MPR findings. The lender then issues the NOV, which VA's Buyer's Guide (PDF) describes as the document with the value, comparable sales and required repairs. The appraisal is not a home inspection; VA strongly recommends one, but no rule requires it.

When the value looks low. VA Circular 26-03-11 requires the appraiser to alert the lender's point of contact when the value appears likely to come in under the contract price. The parties then have 2 working days to send comparable sales that support the price. Lenders call this the "Tidewater" process. After the NOV is issued, you can still ask for a Reconsideration of Value with new sales data.

Occupancy. Under 38 U.S.C. 3704(c) you certify at application and at closing that you intend to occupy the property as your home. VA's Lenders Handbook (VA Pamphlet 26-7, Chapter 3) treats moving in within 60 days of closing as a reasonable time, and says occupancy more than 12 months out generally cannot be considered reasonable. The exceptions the law itself allows:

• If you are on active duty and cannot occupy the home, your spouse's occupancy (or intent to occupy) satisfies the rule.
• If you are on active duty and have no spouse who can occupy, a dependent child's occupancy counts, with the certification signed by your attorney-in-fact or the child's legal guardian.
• A service member retiring on a specific date within 12 months can close now and move in at retirement.

You do not have to be home every night; VA reads "as the veteran's home" as reasonable proximity. What is not allowed is buying a rental or vacation home with a VA loan.

Assumability. VA's Buyer's Guide states that anyone who qualifies, veteran or not, can take over your VA loan and its rate. The buyer pays a 0.5% funding fee. Protect yourself 2 ways: get a release of liability from the lender, and if the buyer is a veteran, have them substitute their own entitlement so yours is restored. If a non-veteran assumes the loan, your entitlement stays tied up until that loan is paid off.

VA's home-buying process page lays out the sequence. Timing notes are typical lender estimates; your market may differ.

1. Get your COE (same day online or through the lender; longer by mail).
2. Review your credit, income and budget. Fix credit-report errors before a lender finds them.
3. Choose a VA lender and get pre-approved. Compare quotes. Lenders may charge a flat fee of up to 1% of the loan, often called the origination fee.
4. Pick a real estate agent who has closed VA loans recently.
5. Shop and make an offer. Your contract must include the VA escape clause, which lets you walk away with your earnest money if the home appraises below the price.
6. Lender orders the VA appraisal. VA sets a state-by-state deadline for the appraiser; ask your lender what it is where you are buying. Schedule your own inspection in the same window.
7. Underwriting (1 to 3 weeks). The lender verifies income, assets and the NOV, and clears any MPR repairs.
8. Closing Disclosure. Your lender must give it to you at least 3 business days before closing. Check the fees against the rules in the next section.
9. Close. Sign at the title company, escrow office or attorney's office. The funding fee is collected or financed here.
10. Move in within a reasonable time, usually 60 days.

Lenders commonly quote 30 to 45 days from contract to closing for a VA purchase; that is a market estimate, not a VA rule. The first-time homebuyer guide covers what happens in each week.

What you may and may not be charged. 38 CFR 36.4313 lists what a veteran can pay: VA appraisal and compliance inspection fees, recording fees and taxes, credit report, prepaid taxes and insurance, hazard insurance, a survey if required, title examination and title insurance, flood-zone determination, discount points, and the lender's flat charge of up to 1% of the loan. You cannot be charged brokerage fees for arranging the loan, or any lender charge outside that list once the 1% flat fee is taken. Sellers may pay your closing costs, plus concessions (funding fee, prepaids, points) up to 4% of the home's reasonable value.

Source: VA columns from https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/ and https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/, effective April 7, 2023. FHA and conventional figures are general market rules; confirm with your lender.

The disadvantages are real but narrow: the funding fee can cost more than PMI over a short ownership, the loan cannot buy a rental or vacation home, and the MPR process can add time. For a veteran who is exempt from the fee, FHA rarely wins.

The VA Home Loan Program Reform Act. H.R. 1815 became Public Law on July 30, 2025. It created a 5-year Partial Claim Program: if your VA loan on your primary residence is in default or at imminent risk, VA can pay the servicer the amount needed to stop foreclosure, secured by a lien you repay later. The law also requires VA to write loss-mitigation procedures and to report to Congress on how it will keep VA buyers from being at a disadvantage when hiring a real estate agent.

The Partial Claim Program went live June 15, 2026. Per VA's announcement and its foreclosure help page, the servicer places you on a 3-month trial payment plan. If you complete it, VA pays the missed amounts and brings the loan current. You repay the partial claim when you pay the loan off, refinance or sell. Servicers have until November 28, 2026 to add it to their systems, so ask your servicer directly if it is not offered yet. VA loan technicians are at 877-827-3702, option 6, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

VASP ended for new borrowers. The Veterans Affairs Servicing Purchase (VASP) program stopped accepting new submissions on May 1, 2025 under VA Circular 26-25-2. Servicers must instead offer the best loss-mitigation option available for your situation, and since June 2026 that list includes the partial claim.

Fees extended, limits raised. The January 2, 2025 amendment to 38 U.S.C. 3729 moved the sunset of the current funding-fee rates to June 9, 2034. The 2026 conforming baseline of $832,750 took effect January 1, 2026.

Watch out: If you fall behind, call your servicer before the third missed payment. Every VA option, including the partial claim, starts with a servicer review, and the trial payment plan has to be completed before VA pays anything.

Several states run their own veteran home-loan programs that stack on the federal benefit, such as the Texas Veterans Land Board, CalVet Home Loans in California and Oregon's ODVA home loan. Many states also offer property-tax exemptions keyed to your disability rating, which change your monthly payment. Select your state to see what applies.