What is a VA Loan?
VA loans are backed by the U.S. Department of Veterans Affairs and are designed to help veterans, active military, and eligible surviving spouses become homeowners. They offer some of the best terms of any loan program.
With no down payment and no PMI requirements, VA loans make homeownership significantly more affordable for those who have served our country.
Key Benefits
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Limited closing costs
- No prepayment penalties
- Available to veterans, active duty, and surviving spouses
Who This Loan Is For
Veterans, active-duty service members, and eligible surviving spouses who hold a Certificate of Eligibility. VA loans are best for buyers who want zero down payment and no monthly mortgage insurance.
Typical Requirements
- • Valid Certificate of Eligibility (COE)
- • Sufficient residual income to support the payment
- • 620+ typical lender minimum (no official VA minimum)
- • Occupancy as a primary residence
- • VA funding fee applies (some exemptions available)
Key Terms to Know
- Certificate of Eligibility (COE)
- Documentation from the VA confirming your service history and entitlement to use the VA loan benefit.
- VA Funding Fee
- A one-time fee that helps fund the VA program. It varies by down payment and service history, and some veterans are exempt.
- IRRRL (Streamline Refinance)
- The Interest Rate Reduction Refinance Loan — a simplified refinance for existing VA loans with reduced paperwork.
- No PMI
- VA loans do not require private mortgage insurance, lowering your monthly payment compared to low-down conventional loans.
- Residual Income
- The income left after major expenses (taxes, debts, shelter). VA lenders verify residual income to confirm affordability.
See our FAQ and loan resources for more definitions and checklists.
Related Loan Programs & Resources
You've Served — Now Let Us Serve You
Our VA loan specialists will walk you through every step of the process.