VA Loans
When it comes to buying a home, there are many options available to you. One of the most powerful, and most misunderstood, is the VA loan. It’s designed to help veterans and active-duty service members achieve homeownership, but a lot of what gets repeated about it online isn’t quite right. Let’s clear that up.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs. If you default on the loan, the VA covers a portion of the lender’s losses. That guarantee is what allows VA loans to offer more flexible qualifying standards and require no down payment, making it one of the most powerful tools available to eligible homebuyers.
Let’s Talk About Credit Scores (The Truth)
You’ll see “620 minimum credit score” listed everywhere for VA loans, including on some of the biggest names in the industry. Here’s what most people don’t realize:
The VA itself does not set a minimum credit score. That 620 number you see quoted by lenders like Veterans United is a lender overlay, a rule that specific company chose to add on top of what the VA actually requires, not a government requirement.
I work with lenders who process VA loans by the book, without unnecessary overlays stacked on top. That means more borrowers get a real shot at qualifying instead of getting turned away by a rule the VA never actually wrote.
In my experience working VA files, many veterans who qualify for a VA loan wouldn’t qualify for a conventional loan under stricter conventional guidelines. The VA program is built to weigh the whole picture, not just a single number, which is exactly why it’s such a valuable benefit and exactly why it’s worth working with someone who won’t turn you away over an overlay that isn’t required in the first place.
Who Is Eligible for a VA Loan?
VA loans are available to a variety of service members, including:
- Veterans
- Active-duty personnel
- Reservists
- Members of the National Guard
To qualify, you generally need at least 90 days of active duty during wartime or 181 days during peacetime. If you’re the spouse of a service member who died in the line of duty or from a service-related disability, you may also be eligible.
The Benefits of a VA Loan
No Down Payment
Purchase a home with little or no cash out of pocket.
Flexible Qualifying
More flexible standards than conventional financing, and no VA-mandated credit minimum.
Competitive Rates
VA loans often carry lower rates than comparable conventional loans.
No PMI
No private mortgage insurance, which can save hundreds per month.
The VA Funding Fee, Explained
VA loans don’t require PMI, but most do include a one-time VA funding fee, paid at closing or rolled into the loan. Here’s what it actually looks like in 2026:
Who’s exempt? Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses receiving DIC typically pay no funding fee at all.
Example: on a $300,000 loan, a first-time buyer putting nothing down would pay a $6,450 funding fee, most borrowers roll this into their loan rather than paying it out of pocket at closing.
Already Have a VA Loan?
If you’ve used your VA loan before and rates have moved since, or you’re just ready to lower your payment, you don’t need to start over. The VA IRRRL is a streamlined refinance built specifically for existing VA loan holders, with a funding fee as low as 0.5%.
The VA doesn’t limit how many times you can use this benefit. As long as you have remaining entitlement and meet financial criteria, you can use it again, even if you haven’t paid off your first VA loan yet.
Is a VA Loan Right for You?
If you’re a veteran or active-duty service member exploring your options, a VA loan is almost always worth a serious look, especially if you’ve been told “no” somewhere else because of an overlay that isn’t actually a VA requirement. I’ll walk you through your real options, not just the ones a lender’s internal rulebook allows.
Common Questions About VA Loans
Do I need my Certificate of Eligibility (COE) before I start?
No. You don’t need to have it in hand to begin the process, in most cases I can pull it for you once we get started. If you want a copy for your own records or to double-check your entitlement, you can also request it directly through the VA’s online portal.
Does a VA loan require the home to be my primary residence?
Yes. VA loans are meant for the home you’ll actually live in, not a second home or investment property. You’ll typically need to move in within 60 days of closing.
What types of properties can I buy with a VA loan?
Single-family homes, VA-approved condos, townhomes, new construction, and even manufactured homes in many cases. You can also buy a multi-unit property (up to four units) as long as you live in one of them.
Will I still have closing costs even with no down payment?
Yes. A VA loan eliminates your down payment and PMI, but you’ll still see standard costs like the appraisal, title search, title insurance, and recording fees, plus the funding fee unless you’re exempt. I’ll walk you through exactly what to expect before you commit to anything.
