VA loan questions, answered

No. Except for the Native American Direct Loan, VA does not make home loans. Private lenders such as banks, credit unions and mortgage companies make the loan, and VA guarantees part of it. That guarantee is why lenders can offer no down payment and no monthly mortgage insurance.

Not always, but often. If you have full entitlement and the price is not higher than the appraised value, VA does not require a down payment. You may still choose to put money down to lower your funding fee and your monthly payment, and you will need a down payment on a large loan if you only have partial entitlement.

Not if you have full entitlement. VA limits only matter when part of your entitlement is tied up in another loan or a past loss. For 2026, the county limits VA uses start at the FHFA baseline of $832,750 for a one-unit home and go up to $1,249,125 in high-cost areas.

VA does not set a minimum credit score. Each lender sets its own, and many look for scores somewhere in the 500s or 600s. If one lender turns you down, another lender may still approve you.

For a first-time purchase with less than 5% down it is 2.15% of the loan amount, and 3.3% if you have used a VA loan before. It drops to 1.5% with 5% down and 1.25% with 10% down. An IRRRL is 0.5%, and Veterans who receive VA disability compensation do not pay it at all.

Yes. The benefit can be used again and again. Once you sell and pay off a VA loan, your entitlement can be restored, and in some cases you can even have two VA loans at the same time if you have enough remaining entitlement.

Yes. Since August 10, 2024, VA has let Veterans pay reasonable and customary buyer's agent fees. You cannot roll that fee into the loan, but the seller can pay it for you, and VA does not count that as a seller concession.

VA limits what a Veteran can pay. The lender can charge a flat fee of up to 1% of the loan to cover origination costs not on VA's allowed list, plus certain itemized costs like the appraisal, credit report, title and recording. Many other lender fees must be paid by someone else, such as the seller or lender.

Not a pure rental. You must plan to live in the home as your main residence. You can buy a 2 to 4 unit building, live in one unit and rent the others, and you can usually keep a home as a rental later after you move out.

Many Veterans get a COE in minutes when a lender requests it online, because VA's system can often confirm service right away. Online requests on VA.gov can also be fast. Mail requests and cases that need more records take longer.

Yes, in many cases. Surviving spouses of service members who died in service or from a service-connected disability, and spouses of those missing in action or held as POWs, may qualify. Spouses who receive DIC do not pay the funding fee.

Call your loan servicer right away and ask about loss mitigation. Options include repayment plans, forbearance, loan modifications and VA's Partial Claim program, which opened in June 2026. VA loan technicians can also help you work with your servicer at no cost.

For most eligible borrowers, a VA loan costs less because there is no monthly mortgage insurance and no required down payment. A conventional loan may make sense if you have 20% down and strong credit, since that avoids both mortgage insurance and the VA funding fee. Compare real Loan Estimates to know for sure.

Often yes. Many lenders want about two years after a Chapter 7 discharge or a foreclosure, and about a year of on-time Chapter 13 payments with court approval. A foreclosure on a past VA loan can also reduce your entitlement until VA's loss is repaid.

No. VA does not mail refinance offers. Letters that look official, promise skipped payments, or push you to refinance again soon after your last loan are marketing, and some are scams. Compare at least three lenders and check that the deal truly saves you money.