What are the benefits to securing a VA loan?

Key insights:

• Active military personnel or those who have served previously may be eligible for government-backed mortgage loans from the Department of Veterans Affairs (VA).
• Because VA loans can be secured without a down payment and do not require the borrower to pay mortgage insurance, they can be advantageous to buyers who don’t have a lump sum to put down at closing.
• VA borrowers should understand that the VA charges a VA funding fee, a one-time fee that helps to keep the VA loan program in operation.

When financing a new home, you’ll have many mortgage loan options. Military personnel, veterans and their families may consider applying for a mortgage loan through the U.S. Department of Veterans Affairs (VA), which can offer advantages in the short term and over the life of the loan.

Here are insights you can use to determine if a VA loan is right for you.

Remember, every buyer is different, so it’s important that you work with a professional who understands your background. Your REALTOR® can recommend a mortgage loan officer who can help you assess your finances and recommend appropriate mortgage options.

VA loan eligibility

Active military, veterans, reservists and National Guard members with more than 90 days of consecutive service can apply for a VA loan —and most veterans will find that they have VA loan eligibility, too.

If you served between August 2, 1990, and now, these are your eligibility requirements:

• At least 24 continuous months, or
• The full period you were called or ordered to active duty (minimum of 90 days), or
• Minimum of 90 days if discharged due to hardship or reduction in force, or
• Less than 90 days if discharged due to a service-connected disability

Spouses of veterans who died in the line of duty are also eligible for VA loans. And, VA loans may be assumable.

READ: Full VA loan eligibility guidelines here

VA down payments and loan limits

The U.S. Department of Veterans Affairs states that “Nearly 90% of VA-backed loans are made with no down payment.” This means that while you will still have to prove you are financially fit to pay your monthly mortgage principal, interest, insurance and taxes, you will not be hindered in purchasing a home due to a lack of liquid assets.

Of course, VA loans are meant to be helper loans for veterans. They aren’t meant to fund multi-million dollar estates in the most expensive ZIP codes of the country. In order to ensure responsible homeownership for VA loan applicants, the VA has loan limits based on the average cost of living for each county across the country.

In 2025, qualified VA borrowers can apply for a home worth up to $806,500 without a down payment.

VA funding fee

One factor to consider as you apply for VA financing is that VA borrowers typically pay a one-time funding fee. It is possible to finance this fee into your loan package (meaning that you do not need to have it in cash in order to be eligible for the loan).

If this is the first time you are securing a VA loan and you have put down less than 5% at closing for a down payment, your fee will be 2.15% of your loan — or $2,150 for every $100,000 you are borrowing.

SEE: What your VA funding fee will be.

Mortgage insurance

Some FHA and conventional borrowers are required to pay monthly mortgage insurance, which protects the lender against the risk of default or delinquency. One major advantage to securing a VA loan is that you will not pay monthly mortgage insurance, even if you don’t put anything down at closing.

This could save you thousands, or even tens of thousands of dollars, over the life of your loan.

Closing costs

There are a variety of ways for VA borrowers to cover closing costs so they don’t have to pay them out of pocket. Borrowers can:

• Ask the seller to cover some or all of the closing costs. There are limitations on these contributions, which you can better understand after speaking with your home mortgage specialist.
• VA loan borrowers can finance their closing costs into their loan, recognizing that they will pay more in interest over time.
• Borrowers can secure a gift to cover the closing or work with their loan officer to find an assistance program that covers these costs.

Ready to get started?

Our local professionals help veterans secure their dream of homeownership every day and we’d love to offer insights and support as you begin that journey. Reach out to our customer care team to be connected with an expert to discuss your options.