VA Home Loan Guarantee

About This Program

The VA Home Loan Guarantee is one of the most financially significant benefits available to veterans. VA-backed loans allow eligible borrowers to purchase a home with no down payment, no private mortgage insurance (PMI), and interest rates that are typically lower than comparable conventional loans. These three features combined can save a veteran tens of thousands of dollars over the life of a loan compared to a conventional mortgage with a minimal down payment. To use the benefit, you need a Certificate of Eligibility (COE) from the VA, which confirms you meet the service requirements. COEs can be obtained online through the VA, through a VA-approved lender, or by mail. Lenders who work regularly with VA loans handle this process routinely. Service requirements vary: generally 90 days of active duty wartime service or 181 days peacetime, 6 years in the National Guard or Reserves, or surviving spouse of a veteran who died in service or from a service-connected disability. The VA funding fee — a one-time fee paid at closing that funds the guarantee program — is required for most borrowers. It ranges from 1.25% to 3.3% of the loan amount depending on down payment and first-time vs. subsequent use. Veterans with service-connected disabilities rated 10% or higher are exempt from the funding fee entirely. VA loans can be used for purchase, construction, refinance (including the Interest Rate Reduction Refinance Loan, IRRRL, for rate reduction), and adapted housing. The benefit can be used more than once — you can have two VA loans simultaneously in some circumstances.

Eligibility Requirements

Related Programs