VA Home Loan Lenders: Buy With $0 Down and Compare VA Purchase Options
VA home loan benefits
| Benefit | What it means for you |
|---|---|
| No down payment | Eligible buyers with full entitlement can finance 100% of the purchase price |
| No monthly mortgage insurance | Unlike FHA or low-down-payment conventional loans |
| Competitive rates | The VA guarantee reduces lender risk |
| No VA loan limit with full entitlement | Since 2020, borrowers with full entitlement aren't capped by a VA loan limit (lenders still set their own maximums and you must qualify) |
| Limits on closing costs | VA restricts some fees veterans can be charged, and sellers can pay some costs |
| Reusable benefit | You can use a VA loan more than once |
See the VA's own overview of the VA purchase loan.
Why compare VA home loan lenders through a broker
- VA sets the program; lenders set the terms. Rates, lender fees and credit-score minimums vary between VA lenders.
- Overlays differ. Some lenders add stricter credit or debt-to-income rules than VA requires; others follow VA guidelines more closely.
- A large network of lending partners means your file can be matched with VA lenders that fit your credit, income and property.
- Experience with VA scenarios: first-time buyers, second VA use, disability-exempt funding fees, surviving spouses and service members relocating on orders.
Approval, rates and closing timelines are never guaranteed and depend on your eligibility, credit, income and the property.
Who is eligible for a VA home loan?
Eligibility depends on your service. In general, VA home loan benefits are available to:
- Veterans who meet minimum active-duty service requirements
- Active-duty service members
- National Guard and Reserve members who meet service requirements
- Certain surviving spouses
Your eligibility is confirmed by a Certificate of Eligibility (COE). Most lenders can request it for you online; see how to request a COE.
VA loan requirements
| Requirement | What to expect |
|---|---|
| Credit score | VA doesn't set a minimum; lenders do. Many lenders work with scores in the 600s |
| Debt-to-income | Reviewed along with VA residual income, a check that you'll have enough left over each month after major expenses |
| Stable income | Employment, military pay, retirement or other verifiable income |
| Occupancy | You must intend to live in the home as your primary residence |
| Property | A VA appraisal confirms value and that the home meets VA minimum property requirements |
| Entitlement | Full or remaining entitlement shown on your COE |
VA funding fee for purchases
Most VA borrowers pay a one-time funding fee, which can be financed into the loan. According to the VA, current purchase funding fees are:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
You don't pay the funding fee if, among other situations, you receive VA compensation for a service-connected disability. See the VA's funding fee and closing costs page.
VA loan vs FHA vs conventional
| VA | FHA | Conventional | |
|---|---|---|---|
| Minimum down payment | $0 (full entitlement) | 3.5% for most borrowers | As low as 3% for some buyers |
| Monthly mortgage insurance | None | Yes | Yes below 20% down |
| Upfront fee | VA funding fee (unless exempt) | Upfront mortgage insurance premium | None required |
| Who can use it | Eligible veterans and service members | Most buyers | Most buyers |
For most eligible veterans, a VA loan offers the lowest upfront cash and no monthly mortgage insurance. On a $350,000 home, avoiding mortgage insurance alone can save a meaningful amount each month compared with a low-down-payment FHA or conventional loan, money that stays in your budget for the life of the loan. With a large down payment, a conventional loan can occasionally compete, and a broker can show both side by side.
How the VA home buying process works
- Confirm eligibility and get your COE.
- Get VA preapproved so you know your price range and sellers take your offer seriously.
- Shop for a home with a real estate agent familiar with VA offers.
- Make an offer; you can ask the seller to contribute toward closing costs within VA limits.
- VA appraisal and inspection confirm value and condition.
- Underwriting and final approval.
- Close and move in. Keep your loan documents; you'll want them if you refinance, sell or use your VA benefit again later.
How much home can you afford with a VA loan?
With no down payment requirement, the practical limit is usually your income, debts and VA residual income, not a loan cap. Residual income is unique to VA loans: after your mortgage payment and major monthly obligations, the lender checks that enough income remains for everyday living costs, with guidelines that vary by family size and region. A lender reviews your monthly debts, the estimated payment (principal, interest, taxes and insurance) and the residual income left for living expenses. Getting preapproved gives you a clear price range before you shop.
Hypothetical example: a $350,000 home with $0 down and a first-use funding fee of 2.15% ($7,525) financed gives a loan amount of about $357,525. Rates, taxes and insurance determine the monthly payment.
VA loan closing costs
VA loans still have closing costs, typically lender fees, appraisal, title, recording, prepaid interest and escrow for taxes and insurance, plus the funding fee unless you're exempt. The VA limits some fees a lender can charge veterans, and there are several ways to reduce cash at closing:
- Seller concessions: sellers can pay customary closing costs and certain additional concessions within VA limits.
- Finance the funding fee into the loan instead of paying it at closing.
- Lender credits: a slightly higher rate can offset some costs.
- Compare Loan Estimates: lender fees vary, which is another reason to compare VA lenders.
Common VA loan myths
| Myth | Reality |
|---|---|
| "VA loans take much longer to close." | Timelines are usually similar to other loans when the file and appraisal are prepared well. |
| "You can only use it once." | The benefit can be reused, and entitlement can often be restored after a VA loan is paid off. |
| "Sellers won't accept VA offers." | A strong preapproval and an experienced agent make VA offers competitive. |
| "You need perfect credit." | VA sets no minimum score; many lenders work with scores in the 600s. |
| "The VA lends the money." | Private lenders make VA loans; the VA guarantees part of the loan. |
Tips for first-time VA home buyers
- Get your COE early so eligibility isn't a last-minute question.
- Get preapproved before house hunting to know your budget and strengthen offers.
- Work with a VA-experienced agent who understands appraisal and property requirements.
- Budget for moving and reserves, even with no down payment.
- Avoid new debt between preapproval and closing, including new cars, furniture financing or credit cards.
- Ask about the funding fee exemption if you have a disability rating.
Using a VA loan more than once
Your VA benefit isn't one-time, which matters for military families who relocate often. You can use it again after selling a home and paying off the loan, and in some cases you can have more than one VA loan at a time if you have remaining entitlement. Subsequent-use funding fees apply unless you're exempt.
What VA lenders look at on your credit
Because the VA leaves credit minimums to lenders, two VA lenders can reach different decisions on the same borrower. Beyond the score itself, lenders typically review:
- Recent payment history, especially the last 12 months of housing and installment payments.
- Credit utilization: high card balances can lower your score and raise your debt-to-income ratio.
- Collections or charge-offs and whether they affect your ability to repay.
- Overall debt load compared with your income and VA residual income.
If your score is in the 600s, it's often worth comparing several VA lenders, since overlays vary more at those levels. Paying down card balances before applying can also help. You can check your reports for free at AnnualCreditReport.com and dispute any errors before a lender pulls your credit.
Buying a 2-4 unit home with a VA loan
VA loans can finance a duplex, triplex or fourplex with no down payment if you live in one of the units. Lenders may count a portion of the expected rent from the other units toward qualifying income, which can help you afford the payment. Requirements such as reserves and landlord experience vary by lender, so this is another scenario where comparing VA lenders pays off.
Already own a home with a VA loan?
If you want to tap equity rather than buy, see VA cash-out refinance lenders. VA cash-out loans can go up to 90% of your home's value with the lenders we work with.
Frequently asked questions
Do VA loans really require no down payment?
Eligible borrowers with full entitlement can buy with no down payment, as long as they qualify with the lender. Borrowers with partial entitlement may need a down payment on higher-priced homes.
What credit score do I need for a VA loan?
The VA doesn't set a minimum credit score, but lenders do. Many VA lenders work with scores in the 600s, and requirements vary, which is why comparing lenders helps.
Is there a VA loan limit?
Since 2020, borrowers with full entitlement have no VA loan limit. Borrowers with remaining (partial) entitlement are subject to county-based limits for a zero-down loan.
How long does a VA loan take to close?
Often 30 to 45 days after an accepted offer, depending on the appraisal, documents and lender.
Can I use a VA loan for a second home or rental?
No. VA loans are for primary residences. You can buy a 2-4 unit property with a VA loan if you live in one of the units.
Can the seller pay my closing costs on a VA loan?
Yes, within VA limits. Sellers can pay customary closing costs and some additional concessions.
Do surviving spouses qualify for VA loans?
Some surviving spouses are eligible, depending on the circumstances of the veteran's death and other factors. The VA determines eligibility.
Can I buy a condo with a VA loan?
Yes, if the condo project meets VA requirements. Your lender can check whether a project is approved or help with the approval process.
Do I need a VA-specific home inspection?
The VA appraisal checks value and minimum property requirements, but it isn't a full inspection. A separate home inspection is strongly recommended.
Can I use a VA loan if I'm still on active duty?
Yes. Active-duty service members who meet service requirements can use VA loans, including when relocating on orders.
What's the difference between prequalification and preapproval?
Prequalification is an estimate based on information you provide. Preapproval involves reviewing your credit and documents, giving you a stronger letter to use with sellers.
Related guides and tools
Sources
- U.S. Department of Veterans Affairs: VA purchase loan
- U.S. Department of Veterans Affairs: VA funding fee and loan closing costs
- U.S. Department of Veterans Affairs: How to request a Certificate of Eligibility