VA Loans
VA loans give eligible veterans, active duty service members, National Guard and Reserve members, and certain surviving spouses one of the strongest home financing benefits available in the U.S. — the ability to finance up to 100% of a home's purchase price without private mortgage insurance, backed by the U.S. Department of Veterans Affairs.
Estimate only, based on 2026 VA funding fee rates. Assumes the funding fee is financed into the loan and a 30-year term. Does not include property taxes, insurance, or HOA dues. Confirm your exact fee and entitlement with a Certificate of Eligibility.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, made available to eligible veterans, active duty service members, National Guard and Reserve members, and certain surviving spouses. The VA doesn't lend the money directly — it guarantees a portion of the loan, which allows approved lenders like MyLoanDesk to offer terms that are difficult to match anywhere else in the mortgage market, most notably zero down payment and no monthly mortgage insurance.
In exchange for that guarantee, most VA loans include a one-time VA funding fee, which we break down in detail below — along with who's exempt from paying it entirely.
How VA Financing Works
Program Highlights
- 0% down payment options for eligible borrowers
- No monthly private mortgage insurance (PMI) or MIP, regardless of down payment
- No VA-imposed maximum loan amount for borrowers with full entitlement
- Competitive, often below-market interest rates
- Reusable benefit — entitlement can often be used again for future purchases
- VA IRRRL streamline refinance available for existing VA loan holders
- Available for single-family homes, condos, and 2-4 unit owner-occupied properties
Skipping a down payment doesn't just lower your cash needed at closing — it also means keeping more savings in reserve, or using those funds toward moving costs, furnishings, or an emergency fund instead of tying it all up in home equity on day one.
Because there's no ongoing mortgage insurance, VA borrowers often have a meaningfully lower monthly payment than an FHA or low-down-payment conventional borrower financing the same home — insurance alone can add hundreds of dollars a month on other loan types.
The VA funding fee, unlike monthly mortgage insurance, is a one-time cost — and many veterans avoid it entirely through a disability exemption, making VA financing one of the most genuinely cost-effective paths to homeownership available.
Who VA Loans Are For
- Active duty service members meeting minimum service requirements
- Veterans who served the qualifying minimum length of active duty
- National Guard and Reserve members who meet service requirements
- Certain surviving spouses of veterans who died in service or from a service-connected disability
- Buyers who want to avoid a down payment and ongoing mortgage insurance entirely
VA Funding Fee Rates (2026)
The VA funding fee scales with your down payment and whether this is your first or a subsequent use of your VA benefit:
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
VA IRRRL (streamline) refinances carry a flat 0.50% funding fee regardless of down payment or prior use. Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses are generally exempt from the funding fee entirely.
VA Loans vs. FHA and Conventional Loans
| VA Loan | FHA Loan | Conventional Loan | |
|---|---|---|---|
| Minimum down payment | 0% for eligible veterans | 3.5% (with 580+ score) | As low as 3%, usually 5%+ |
| Monthly mortgage insurance | None | Upfront + annual MIP, often for the loan's life | PMI, removable around 20% equity |
| One-time fee | VA funding fee (waivable for many) | Upfront MIP (1.75%) | None, typically |
| Maximum loan amount | None, with full entitlement | Set by county FHA limits | Set by conforming loan limits |
| Best for | Eligible veterans and service members | Buyers with lower credit or smaller down payments | Buyers with strong credit and 5%+ down |
Frequently Asked Questions
Do I have to make a down payment for a VA loan?
No. Eligible VA borrowers can finance up to 100% of the purchase price with no down payment required, one of the program's signature benefits. A down payment is never required, though making one can reduce your VA funding fee.
What is the VA funding fee and how much is it?
The VA funding fee is a one-time fee that helps sustain the VA loan program, replacing the need for monthly mortgage insurance. For 2026, first-time use with less than 5% down is 2.15% of the loan amount; subsequent use with less than 5% down is 3.30%. Putting 5% or more down lowers the fee to 1.50%, and 10% or more down lowers it to 1.25%, regardless of prior use.
Am I exempt from the VA funding fee?
Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses receiving Dependency and Indemnity Compensation (DIC) are typically exempt from the VA funding fee entirely.
What is a Certificate of Eligibility (COE) and how do I get one?
A Certificate of Eligibility is the document that confirms your VA loan entitlement to a lender. It can be requested through the VA's eBenefits portal, by mail, or in many cases pulled directly by your lender during the application process, so you don't need to obtain it yourself beforehand.
Can I use my VA loan benefit more than once?
Yes. VA loan entitlement can typically be reused for future home purchases, including after paying off a prior VA loan or, in many cases, while still carrying one, depending on your remaining entitlement.
Is there a maximum VA loan amount?
For most eligible veterans with full entitlement, there is no VA-imposed maximum loan amount. Lenders may still apply their own underwriting limits for larger loan amounts, but the VA guaranty itself is no longer capped by the county loan limits that applied before 2020.
Do VA loans require mortgage insurance?
No. VA loans do not require monthly private mortgage insurance (PMI) or mortgage insurance premiums (MIP), regardless of down payment. The one-time VA funding fee replaces the need for ongoing mortgage insurance.
What is a VA IRRRL (VA Streamline Refinance)?
A VA Interest Rate Reduction Refinance Loan (IRRRL) is a simplified refinance option for existing VA loan holders, typically requiring less documentation and often no new appraisal or credit underwriting, with a lower funding fee of just 0.50%.
Can National Guard and Reserve members use VA loans?
Yes. National Guard and Reserve members who meet the required service length can qualify for VA loans, and pay the same funding fee rates as active duty service members and veterans.