For eligible service members, veterans, and surviving spouses, a VA loan is one of the most valuable home-buying benefits available. It can let you buy a home with no down payment, no private mortgage insurance, and competitive interest rates. But qualifying takes more than military service alone. This guide breaks down VA loan requirements in 2026, from service history and credit to income, property standards, and the funding fee.
What Is a VA Loan?
A VA loan is a mortgage issued by a private lender, such as a bank, credit union, or mortgage company, and partially guaranteed by the U.S. Department of Veterans Affairs. That guarantee reduces lender risk, allowing terms conventional mortgages rarely match.
Key benefits include:
- No down payment for most borrowers with full entitlement
- No monthly private mortgage insurance (PMI)
- Competitive interest rates
- Limits on certain closing costs
- No prepayment penalty
VA Loan Service Requirements
Eligibility starts with your service record. In general, you may qualify if one of these applies:
- Active-duty service members: Typically at least 90 continuous days of active service.
- Veterans: Minimum service depends on when you served, generally 90 days during wartime, 181 days during peacetime, or 24 continuous months for more recent service periods, along with a discharge other than dishonorable.
- National Guard and Reserve members: Generally six years of service, or 90 days of qualifying active-duty service, including at least 30 consecutive days.
- Surviving spouses: Unremarried spouses of service members who died in the line of duty or from a service-connected disability, along with some other qualifying situations.
Exceptions exist, so check the official rules against your record.
Certificate of Eligibility (COE)
To prove you meet the service rules, your lender needs a Certificate of Eligibility. Most lenders can request it electronically in minutes. You can also apply online through VA.gov or by mail. Keep your DD-214 or a statement of service ready, depending on your status.
VA Loan Credit Score Requirements
The VA does not set a minimum credit score. Individual lenders set their own standards, often called overlays. Many lenders look for a score around 620, while some work with borrowers in the 580s or lower when the rest of the application is strong.
Lenders also review recent credit history. A past bankruptcy or foreclosure does not automatically disqualify you, but you will generally need to wait, often about two years after a Chapter 7 discharge or foreclosure, and show reestablished credit.
Income, DTI, and Residual Income
VA underwriting uses two measures to judge affordability.
Debt-to-income (DTI) ratio: The VA uses 41% as a benchmark. You can still qualify above that level, but lenders will look for compensating factors such as savings or strong residual income.
Residual income: This is what makes VA underwriting unique. After paying your mortgage, debts, taxes, and estimated living costs, you must have a minimum amount left over each month. The required figure depends on family size, loan amount, and region of the country.
Expect to document income with pay stubs, W-2s, tax returns, or Leave and Earnings Statements.
Property and Occupancy Requirements
VA loans are for primary residences. You generally must move in within 60 days of closing, with some flexibility for deployed service members.
The home must also pass a VA appraisal and meet minimum property requirements focused on safety, soundness, and sanitation. Problems such as a damaged roof, peeling paint in an older home, or a faulty heating system may need repair before closing.
Eligible properties include single-family homes, VA-approved condos, and buildings of up to four units if you live in one.
VA Funding Fee in 2026
Most borrowers pay a one-time VA funding fee that helps sustain the program. Purchase loan rates, unchanged since April 2023, are:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a $350,000 first-use loan with no money down, the fee would be $7,525. You can pay it at closing or roll it into the loan amount.
Veterans receiving VA compensation for a service-connected disability, certain surviving spouses, and active-duty service members who have received the Purple Heart are generally exempt.
VA Loan Limits
Borrowers with full entitlement have no VA loan limit, so the guarantee applies regardless of price, although the lender still decides how much you can afford. If you have an active VA loan or used entitlement that has not been restored, county loan limits can affect how much you can borrow without a down payment.
VA Loans vs. FHA Loans
Many first-time buyers compare VA and FHA loans. FHA requires at least 3.5% down and charges mortgage insurance premiums, while VA loans typically require neither. If you are not VA-eligible, our breakdown of FHA loan requirements explains that path in detail.
How to Apply for a VA Loan
- Confirm your eligibility and request your COE.
- Check your credit reports and dispute any errors.
- Get pre-approved with two or three VA-approved lenders to compare rates and fees.
- Make an offer and schedule the VA appraisal.
- Complete underwriting and close on your home.
For official program details, visit the VA home loans page on VA.gov.
Frequently Asked Questions
Can I use a VA loan more than once?
Yes. Entitlement can be restored after you sell a home and pay off the previous VA loan, and in some cases you can hold two VA loans at once.
Do VA loans have closing costs?
Yes, but the VA limits certain fees, and sellers are allowed to contribute toward your costs.
Can I refinance a VA loan?
Yes. The Interest Rate Reduction Refinance Loan (IRRRL) and the VA cash-out refinance are both available.
Final Thoughts
VA loans remain one of the strongest mortgage options for those who have earned them. Knowing the requirements ahead of time means fewer surprises between pre-approval and closing.
This article is for educational purposes only and is not financial advice. Program rules can change, so confirm details with the VA and your lender.
