If you’re a military veteran, active-duty service member, or surviving spouse of a veteran, the benefits of a VA mortgage can help you achieve your dream of homeownership. A military VA home loan offers significant advantages, such as no down payment, no private mortgage insurance, and competitive interest rates. Compared to conventional and FHA mortgages, VA loans are often more accessible and cost-effective for those who qualify.
In this guide, we’ll walk you through everything you need to know about applying for a VA mortgage, including eligibility requirements, loan benefits, and the application process.
Who Qualifies for a VA Loan?
VA mortgages are designed for military veterans, active-duty service members, certain National Guard and Reserve members, and surviving spouses of veterans.
Service Members and Veterans
Active-duty service members must have served at least 90 continuous days without a break. Veterans’ eligibility requirements depend on the era in which they served. For example, those who served during the Gulf War (August 2, 1990, to present) generally need 24 months or the full period they were called to active duty.
National Guard and Reserve Members
National Guard and Reserve members typically require six credible years of service. However, if called to active duty under Title 10 or Title 32, they may qualify with less time served.
Special Circumstances
If you were discharged for hardship, medical conditions, or a service-connected disability, you may still meet eligibility requirements even if you didn’t complete the required service time. Spouses of veterans who died in service, are missing in action, or were taken as prisoners of war can also qualify.
To confirm your eligibility, visit the VA’s eligibility page.
Why Choose a VA Loan?
VA loans are among the most borrower-friendly mortgage options available, designed specifically to help veterans, active-duty service members, and their families become homeowners. These loans stand out not just for their affordability but for the flexibility they provide throughout the home-buying process. Whether you’re purchasing your first home, refinancing, or seeking to build equity in your property, the benefits of a VA loan make it an invaluable resource for those who qualify.
Key benefits include:
- No Down Payment: Unlike FHA and conventional loans, VA loans typically don’t require a down payment, making homeownership more accessible without the need for years of saving.
- No PMI: VA loans eliminate private mortgage insurance, saving you hundreds—or even thousands—of dollars annually compared to other loan types.
- Competitive Interest Rates: VA loans often offer interest rates that are lower than market averages, helping you save significantly over the life of your loan.
- Flexible Credit Requirements: While lenders may have their own standards, VA loans allow for more lenient credit requirements, making it easier for borrowers with lower scores to qualify.
- Assumable Loans: VA loans can be transferred to another eligible borrower, adding value and flexibility if you decide to sell your home in the future.
- No Prepayment Penalty: With VA loans, you won’t face additional costs if you choose to pay off your loan early.
VA loans make homeownership possible and sustainable, with terms and conditions tailored to the unique needs of veterans.
What Are the Closing Costs on a VA Loan?
While VA loans save money by eliminating down payments and PMI, there are some VA loan closing costs to be aware of:
- VA Funding Fee: A one-time fee based on your down payment and prior VA loan use.
- Origination Fee: Charged by the lender for processing the loan.
- Credit Report Fee: Covers the cost of pulling your credit report.
- Prepaid Taxes and Insurance: An upfront payment for property taxes and homeowners insurance.
- Discount Points: Optional fees to lower your interest rate.
- Title Search Fee: Ensures there are no legal claims against the property.
- Appraisal Fee: Covers the VA-required appraisal to confirm the home’s value and condition.
Some closing costs on a VA loan can be negotiated or covered by the seller, and the funding fee can often be rolled into your loan amount.
How To Request a VA Home Loan Certificate of Eligibility (COE)
Applying for a VA mortgage starts with getting your Certificate of Eligibility (COE). This document confirms your eligibility based on your service history and is required by lenders.
You can request your COE through the VA’s eBenefits portal, through your lender, or by mailing VA Form 26-1880. If you’ve used your VA loan entitlement before, you can restore it by selling the property tied to the prior loan and repaying it in full. In some cases, if the loan is repaid but the home hasn’t been sold, you can request a one-time entitlement restoration.
How To Apply for a VA Mortgage
When applying for a VA mortgage, follow these steps:
- Request Your COE: Start by confirming your eligibility through the VA’s eBenefits portal, your lender, or by mail.
- Get Pre-Approved for a VA Home Loan: Work with a VA-approved lender to determine how much you can borrow and how much home you can afford with a VA home loan.
- Find a Home: Partner with a real estate agent familiar with VA loans.
- Submit an Offer: Include a VA loan contingency clause in your purchase agreement.
- Get an Appraisal: Your lender will order a VA appraisal and finalize your loan approval.
- Close the Loan: Sign the final paperwork and take ownership of your new home!
Can You Have Two VA Home Loans?
Yes, you can have two VA home loans in certain circumstances. If you have remaining entitlement or need to relocate for work, you may qualify for a second VA loan.
To restore full entitlement, you must sell the home tied to your previous loan and repay the loan in full. If you’ve repaid the loan but haven’t sold the home, you can request a one-time entitlement restoration.
How To Use Your VA Loan Entitlement for Multiple Loans
If your original VA loan did not use all of your entitlement, you can use the remaining portion for a second loan. If you’ve paid off your previous VA loan and sold the property, you can apply to have your entitlement restored for a new loan.
Each VA loan requires you to occupy the home as your primary residence, but exceptions can be made for certain circumstances such as job relocations. You can consult the VA website for more information on using VA loan entitlement for multiple loans.
Can You Refinance a VA Loan?
If you already have a VA loan, refinancing can help you save money or access your home equity.
The Interest Rate Reduction Refinance Loan (IRRRL)—also known as a VA Streamline Refinance—allows you to lower your interest rate with minimal paperwork and no appraisal. The Cash-Out Refinance option lets you tap into your home’s equity for major expenses like education, home improvements, or debt consolidation.
For Native American veterans or those married to Native Americans, the Native American Direct Loan (NADL) program provides financing to buy, build, or improve homes on federal trust land.
VA Loans vs. FHA and Conventional Mortgages
VA loans offer significant advantages over FHA and conventional loans, particularly in terms of down payment requirements and private mortgage insurance.
For example, VA loans often require no down payment at all—unlike FHA loans, which typically require a minimum down payment of 3.5%, and conventional loans, which may require down payments ranging from 3% to 20%.
On a $300,000 home, an FHA loan would require a minimum down payment of $10,500, while a conventional loan could require anywhere from $9,000 to $60,000, depending on the lender’s requirements. With a VA loan, eligible borrowers could save tens of thousands of dollars upfront, making homeownership more attainable.
Qualifying for a VA Mortgage in 2025
Qualifying for a VA mortgage in 2025 is more than just a step toward homeownership—it’s a recognition of your service and sacrifice. VA loans make owning a home possible and achievable, offering you the chance to build stability for your family. Whether you're dreaming of your first home or looking to refinance, these benefits are here because you’ve earned them. To learn more about housing benefits that you may qualify for, check out our list of housing programs.
