If you're a veteran or active-duty service member still paying rent, you might be missing out on the most powerful homebuying benefit in the U.S.

VA loans require no down payment. No PMI. And offer lower rates than most mortgages. Yet thousands who qualify never apply—because no one explained how game-changing it really is.

This guide reveals how to unlock a VA loan—what it is, who qualifies, and how you could buy a home with zero down and save thousands.

VA Loan vs Conventional vs FHA – Quick Comparison

Key Takeaways

• Zero Down & No PMI: VA loans often require no down payment and eliminate private mortgage insurance, saving you thousands.
• Service-Based Eligibility: Available to veterans, active-duty personnel, certain National Guard/Reserve members, and some surviving spouses.
• Flexible Credit Requirements: The VA doesn’t set a minimum score, but most lenders prefer 580–620.
• Clear-Cut Process: From obtaining your Certificate of Eligibility (COE) to closing, understanding each phase streamlines homeownership.

How to Qualify for a VA Loan (Step-by-Step)

Many assume VA loans are hard to qualify for. Here’s the truth:

• Military Service Requirement: 90 days wartime, 181 days peacetime
• COE from VA.gov
• Credit Score: Preferably 580+
• DTI Ratio: Typically under 41%

See detailed eligibility here.

Does a VA Loan Require PMI?

Not at all. Unlike FHA or conventional loans, VA loans eliminate PMI entirely, which can save borrowers over $20,000 across the life of the loan. Learn more in our VA PMI Guide.

What is a VA Loan & Why It’s a Game-Changer

A VA loan is a government-backed mortgage, specifically designed to help veterans, active-duty service members, and eligible military spouses become homeowners under the most favorable terms possible.

Key Benefits of a VA Loan:

• Zero Down Payment: Keeps upfront costs to a minimum.
• No PMI: Saves hundreds per month compared to conventional loans.
• Lower Interest Rates: Typically 0.5%–1% lower than conventional mortgages. (APR varies; check lender for exact rates.)
• Flexible Credit Requirements: Although 580+ is common, the VA doesn’t mandate a minimum score.
• Funding Fee Waivers: For veterans with qualifying service-connected disabilities.
• Streamlined Refinancing: The VA IRRRL (Interest Rate Reduction Refinance Loan) makes it easy to lower your rate.

VA Loan Requirements — Who Qualifies?

Service Eligibility:

• Veterans who served at least 90 days during wartime or 181 days in peacetime.
• Active-Duty members with a minimum of 90 continuous days.
• National Guard/Reserve with six years of service.
• Surviving Spouses of service members who died in duty or from a service-connected disability.

(Detailed criteria can be found in VA Handbook 26-7.)

Want the full breakdown? Check our VA Loan Eligibility guide for service time, COE rules, and lender nuances.

Financial Requirements:

• Credit Score: Typically 580–620, though lender policies vary.
• Debt-to-Income (DTI): Aim for 41% or below, but some lenders allow higher with strong compensating factors.
• Certificate of Eligibility (COE): Verify your military service history; obtain it at VA.gov.

For deeper insights, explore our thorough VA Home Loan Requirements guide.

How Does a VA Loan Work? (Step-by-Step)

1. Check Eligibility: Secure your COE at VA.gov.
2. Choose a VA-Approved Lender: Not all lenders offer VA loans.
3. Get Pre-Approved: Establish your homebuying budget and gain seller confidence.
4. House Hunt: Partner with a real estate agent experienced in VA transactions.
5. Make an Offer & Contract: Negotiate terms and proceed to underwriting.
6. VA Appraisal: Ensures the property meets VA standards.
7. Close the Deal: Sign final paperwork, pay closing costs, and get the keys.

Need help getting pre-approved? Our VA Pre-Approval Guide walks you through every step.

VA Loan Benefits: More Than Zero Down

• $20,000+ PMI Savings: Over time, skipping private mortgage insurance adds up.
• Competitive Rates: Typically 0.5% lower than standard mortgages.
• Easy Refi Options: The VA IRRRL can lower your rate with minimal paperwork.
• Assumable Loans: VA loans can be transferred to another qualified buyer—helpful if interest rates rise.

Example: Financing a $300,000 home with a VA loan can save you over $20k upfront compared to an FHA loan requiring 3.5% down.

Selecting the Right VA Lender

Not all lenders approach VA loans equally. Watch out for hidden fees or subpar rates.

Key Factors to Consider:

• Experience with VA Loans: Lenders who specialize in VA mortgages simplify the process.
• Transparent Fees: Seek minimal closing costs and no unnecessary charges.
• Competitive Rates: Always shop around.
• Veteran-Centric Support: Pick a lender that truly values and supports vets.

Recommended Options

• Be My Neighbor Mortgage (NMLS #1743790) for straightforward VA financing.
• reAlpha for reduced commission costs and AI-driven property searches to maximize savings.

FAQs

What is a VA loan?

A VA loan is a government-backed mortgage offered to eligible veterans, active-duty service members, and certain surviving spouses. It requires no down payment, no PMI, and often features lower interest rates than traditional loans.

Do VA loans have PMI?

No, VA loans do not require private mortgage insurance (PMI)—a major cost-saver compared to FHA and conventional loans.

What are the negatives of using a VA loan?

• Funding Fee (unless exempt)
• Primary Residence Only
• Tougher Appraisals

Still, the long-term savings typically outweigh these drawbacks.

How does a VA loan work?

• Get your Certificate of Eligibility (COE)
• Choose a VA-approved lender
• Get pre-approved
• Shop with confidence
• Go through VA appraisal
• Close and move in—no down payment required

How many times can you use a VA loan?

There’s no limit—you can use a VA loan multiple times, as long as you have available entitlement.

Be My Neighbor Mortgage, LLC (NMLS #1743790) | Equal Housing Lender
This is not a commitment to lend. All loans subject to credit and underwriting approval. Rates and terms may change.