VA loans are one of the most powerful home financing tools available to eligible veterans, active duty service members, and surviving spouses. Backed by the U.S. Department of Veterans Affairs, these loans offer no down payment, no private mortgage insurance (PMI), and competitive interest rates — benefits that can save eligible borrowers tens of thousands of dollars over the life of a loan.
VA Loan Eligibility Requirements
| Service Category | Minimum Service Requirement |
|---|---|
| Active duty (wartime) | 90 consecutive days |
| Active duty (peacetime) | 181 consecutive days |
| National Guard / Reserves | 6 years, or 90 days active duty under Title 10 |
| Surviving spouse | Spouse of veteran who died in service or from service-connected disability |
VA Loan Credit Score and Financial Requirements
The VA does not set a minimum credit score requirement — that is set by individual lenders. Most VA-approved lenders require a minimum score of 580–620, though some accept lower scores with compensating factors.
- Credit score: 580–620+ (lender-set)
- Debt-to-income ratio: 41% or lower
- Residual income: varies by region and family size
- Certificate of Eligibility (COE)
- Primary residence only
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Limited closing costs
- No prepayment penalty
VA Loan Funding Fee (2026)
| Loan Type | Down Payment | First Use | Subsequent Use |
|---|---|---|---|
| Purchase loan | 0% | 2.15% | 3.30% |
| Purchase loan | 5%–9.99% | 1.50% | 1.50% |
| Purchase loan | 10%+ | 1.25% | 1.25% |
| Cash-out refinance | N/A | 2.15% | 3.30% |
| IRRRL (streamline refi) | N/A | 0.50% | 0.50% |
Note: Veterans with a service-connected disability rating of 10% or higher are exempt from the VA funding fee.
How to Apply for a VA Loan
Frequently Asked Questions
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Sources & Methodology: WiseIQ's editorial team researches and fact-checks all content using primary sources including the Consumer Financial Protection Bureau (CFPB), Federal Reserve G.19 Consumer Credit Report, myFICO Credit Education, and lender websites for current rates and terms. Last reviewed: April 2026. How we rank products.