VA loans remain one of the strongest home-financing benefits available to eligible veterans, active-duty service members, and certain surviving spouses. With full entitlement there is no required down payment and never any private mortgage insurance, regardless of the loan-to-value ratio. Interest rates on VA loans are often slightly lower than conventional rates because the Department of Veterans Affairs guarantees a portion of the loan, reducing lender risk. These features can free up thousands of dollars that would otherwise go toward a down payment or monthly PMI.
A one-time VA funding fee applies to most borrowers. For first-time use with zero down, the fee is typically 2.15% of the loan amount (slightly higher for Reserve and National Guard members). The fee drops if you make a down payment of 5% or 10%, and it is waived entirely for veterans receiving disability compensation and certain other groups. The funding fee can be financed into the loan so it does not have to be paid in cash at closing.
Entitlement rules changed in recent years. Borrowers with full entitlement face no VA-imposed loan limit; the only limit is what the lender will approve based on income and credit. Those with partial entitlement must consider the county conforming loan limit when calculating any required down payment. Requesting a Certificate of Eligibility (COE) early in the process confirms your status and remaining entitlement.
Estimate your payment with the VA loan calculator. Because there is no monthly mortgage insurance, the payment often looks more attractive than an FHA or conventional loan with a small down payment. Compare the result side-by-side with the main mortgage calculatorand the FHA loan calculator so you can choose the program that truly fits your situation and long-term goals.