How a VA home loan works
VA loans are guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. Most borrowers can buy with no down payment, and there is no private mortgage insurance. Instead, most borrowers pay a one-time VA funding fee, which can be added to the loan.
VA funding fee for buying a home
- First use, less than 5% down – 2.15% of the loan.
- After first use, less than 5% down – 3.3%.
- 5% to less than 10% down – 1.5%.
- 10% or more down – 1.25%.
Veterans who receive VA disability compensation, and some others such as surviving spouses receiving Dependency and Indemnity Compensation, do not pay the fee. The calculator applies the right rate and adds the fee to your loan amount.
Frequently asked questions
Who is eligible for a VA loan?
Eligibility depends on your length and type of service. You prove it with a Certificate of Eligibility (COE), which you or your lender can request through VA.gov.
Is there a VA loan limit?
Borrowers with full entitlement have no VA loan limit, though lenders still check your income and credit. If part of your entitlement is in use, county limits can affect how much you can borrow with no money down.
Can I use a VA loan more than once?
Yes. You can use the benefit again, and your entitlement can be restored after you sell the home and repay the loan. The funding fee is higher after the first use unless you put 5% or more down.