VA Loans: Complete Qualification and Funding Guide
Who Qualifies for a VA Loan?
Eligibility is based on military service or surviving-spouse status. To obtain a VA loan, you must qualify as one of the following:
- Active-duty, National Guard, or reserve service members who have served for at least 90 continuous days.
- Veterans who meet certain minimum length-of-service requirements. Active-duty military members or veterans with disabilities connected to their service.
- Surviving spouses of military service members who died while on active duty
You’ll also need to meet your lender’s credit and income requirements, which aren’t set by the VA. The home you’re purchasing must be your primary residence, not a vacation or investment property.
HIGHLIGHTS:
- 100% Financing for Single Primary Home
- VA certificate of eligibility (COE)
- 640 credit score
- 4% Seller Concessions (let seller pay closing cost)
- 2 years employment history with W2s
- Latest 2 months of bank statements
- All Florida US Citizens & Permanent Residents
VA Purchase Affordability Calculator
For Veterans and active-duty service members — no PMI
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Tell us about you and the home you want. Your VA affordability figures from the calculator above are included automatically.
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You Must Have a Certificate of Eligibility
To obtain a VA loan, you’ll need a VA certificate of eligibility (COE) verifying your status as a qualifying service member or surviving spouse. You can get your COE directly from the Department of Veterans Affairs.
Note: There may be additional VA loan requirements for surviving spouses.
The Property Must Meet Certain Requirements
The VA has minimum property standards (MPRs) that a home must meet to ensure it’s safe and structurally sound. A VA-approved appraiser will check that the home meets these standards and that the home value aligns with government-issued guidelines. If the appraisal doesn’t meet these standards, your lender may not issue you the loan.
What to Know About the VA Funding Fee
A VA funding fee is a one-time fee paid to the Department of Veterans Affairs for your VA loan. The government sets this fee, and it’s subject to change based on legislation. The amount you pay on the funding fee depends on your down payment amount and whether you’ve used a VA loan before.
For first-time borrowers with a 0% – 5% down payment, the fee is typically 2.15%. For repeat borrowers with a 0% – 5% down payment, the fee is usually 3.3%. Keep in mind that if your down payment is above 5%, the funding fee is often lower.
Typical VA Funding Fee Amounts
Your funding fee depends on your VA loan type, down payment amount, and how many VA loans you’ve had.
| Loan type | First use | Subsequent uses |
|---|---|---|
| Purchase loan | 1.25% – 2.15%, depending on down payment | 1.25% – 3.3%, depending on down payment |
| Cash-out refinancing | 2.15% | 3.3% |
| NADL purchase | 1.25% | 1.25% |
| NADL refinance | 0.5% | 0.5% |
| IRRRL | 0.5% | 0.5% |
Do VA Loans Require a Down Payment?
No, VA loans don’t require a down payment as long as you have your full entitlement. If you’ve previously used some or all of your entitlement, you may need a down payment for your next home.
Frequently Asked Questions
What are the eligibility requirements for a VA loan?
Eligibility for a VA loan is based on military service or surviving-spouse status. You must be an active-duty service member, veteran, or a surviving spouse of a service member who died on active duty.
Is there a down payment required for a VA loan?
No, VA loans offer 100% financing, which means there is no down payment required for purchasing a single primary home.
Do VA loans require mortgage insurance?
No, VA loans do not require private mortgage insurance (PMI), making them a cost-effective option for eligible borrowers.
What documents are needed to apply for a VA loan?
To apply for a VA loan, you'll need a VA Certificate of Eligibility (COE) or DD-214, recent pay stubs or tax returns, bank statements, photo ID, and a purchase contract if available.
What is the VA funding fee?
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs that varies based on your down payment and whether you have used a VA loan before. For first-time borrowers with a 0% – 5% down payment, the fee is typically 2.15%.
What property requirements must be met for a VA loan?
The property must meet minimum property standards (MPRs) set by the VA to ensure it is safe and structurally sound, verified by a VA-approved appraiser.