What Is VA Loan?

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. It requires zero down payment and carries no private mortgage insurance (PMI). VA loans consistently offer some of the lowest interest rates on the market, often 0.25%–0.50% below conventional rates.

For example, on a $400,000 home purchase, a VA borrower can finance 100% of the price with no down payment. Instead of PMI, VA loans charge a one-time VA funding fee—typically 2.15% for first-time use ($8,600 on a $400,000 loan)—which can be rolled into the loan balance. Disabled veterans and Purple Heart recipients are exempt from the funding fee entirely.

Key Facts

• Down payment required: $0 — 100% financing available
• PMI required: No — saving borrowers $100–$300 per month
• VA funding fee: 2.15% for first use, 3.3% for subsequent use (waived for disabled veterans)
• Loan limit: No cap for borrowers with full entitlement

Frequently Asked Questions

Who is eligible for a VA loan?

You qualify with 90 days of active wartime service, 181 days of peacetime service, or 6 years in the National Guard or Reserves. Surviving spouses of service members who died in the line of duty or from a service-connected disability are also eligible.

Can you use a VA loan more than once?

Yes. Your VA entitlement can be reused after paying off a previous VA loan or selling the home. Some borrowers can even hold two VA loans at the same time if they have remaining entitlement.