Direct Answer
VA loan eligibility extends to eligible veterans, active-duty service members, Guard/Reserve with qualifying service, and some surviving spouses with a Certificate of Eligibility (COE). VA loans allow 0% down, no private mortgage insurance (PMI), and a one-time funding fee (often 2.15% first use, 0% down). On a $350,000 home at 6.0%, principal and interest run about $2,143/month with the fee financed — with no PMI.
Use the VA Loan Calculator to estimate payments with your price, rate, and funding fee.
Last verified on: June 28, 2026
Editorial note: Funding fee percentages follow VA published schedules. Lender overlays, county loan limits, and property type (condo approval, manufactured home) affect approval. This is educational content, not lending advice.
Research method: Daily Calcs reviewed VA.gov eligibility and funding fee pages, Consumer Financial Protection Bureau (CFPB) VA loan guidance, and modeled payment scenarios at 6.0% on a 30-year fixed term. Verified June 28, 2026.
Who Is Eligible
VA loan eligibility is based on your service history and is confirmed by a Certificate of Eligibility (COE). In broad terms, eligibility extends to:
- Veterans who meet minimum active-duty service for their era (often 90 days wartime or 181 days peacetime).
- Active-duty service members after a qualifying period of continuous service.
- National Guard and Reserve members with six years of service or qualifying active duty.
- Some surviving spouses of service members who died in service or from a service-connected disability.
Service length requirements differ between wartime and peacetime eras. You can request your COE through VA.gov, by mail, or — most commonly — through your lender, who can often pull it in minutes.
Eligibility summary table
| Borrower type | Typical service requirement |
|---|---|
| Wartime veteran | 90 continuous days active duty |
| Peacetime veteran | 181 continuous days active duty |
| Guard / Reserve | 6 years service OR qualifying active duty |
| Active duty now | Per VA current-duty rules |
| Surviving spouse | Unremarried; service-connected death or MIA/POW |
The VA Funding Fee
The VA funding fee sustains the loan program in place of monthly mortgage insurance. It is a one-time charge that you can pay at closing or finance into the loan.
| Use | Down payment | Typical funding fee |
|---|---|---|
| First use | 0% | 2.15% |
| First use | 5%-9.99% | 1.50% |
| First use | 10%+ | 1.25% |
| Subsequent use | 0% | 3.30% |
| Subsequent use | 5%-9.99% | 1.50% |
| Subsequent use | 10%+ | 1.25% |
Veterans receiving compensation for a service-connected disability are often exempt from the fee entirely — saving $7,525 on a $350,000 loan at the 2.15% first-use rate.
Payment Example: $350,000 Home
Assumptions: 0% down, 6.0% rate, 30-year fixed, 2.15% funding fee financed.
| Line item | Monthly amount |
|---|---|
| Principal & interest (incl. financed fee) | $2,143 |
| Property tax (est. 0.8%) | $233 |
| Homeowners insurance (est.) | $150 |
| PMI | $0 |
| Total housing (PITI) | ~$2,526 |
Compare to conventional 5% down on the same home: PMI often adds $180 to $220/month, pushing PITI toward $2,700+ before taxes.
Confirm your figures in the VA Loan Calculator.
Why No PMI Matters
Conventional loans under 20% down charge private mortgage insurance (PMI). Federal Housing Administration (FHA) loans charge mortgage insurance premium (MIP), often for the life of the loan with less than 10% down. VA loans charge neither monthly insurance product.
| Program | Monthly insurance on $350k, low down |
|---|---|
| VA | $0 (funding fee is one-time) |
| Conventional 5% down | ~$190/month PMI (est.) |
| FHA 3.5% down | ~$160/month MIP + upfront fee |
For buyers putting little down, skipping PMI saves $150 to $250 per month — a major reason eligible borrowers compare VA against other programs.
Reusing Your Entitlement
You can use a VA loan more than once if you have remaining entitlement or restore it after selling a prior VA-financed home and paying off the VA loan.
Common scenarios:
- Sell and buy: Pay off the VA loan; full entitlement restores for the next purchase.
- Keep first home, buy second: Use remaining entitlement if the lender and VA calculations allow.
- Second use, 0% down: Higher 3.30% funding fee — consider 5% down to drop to 1.50%.
VA Loan Application Checklist
- Obtain Certificate of Eligibility (COE) via lender or VA.gov
- Confirm disability rating for funding fee exemption if applicable
- Check DTI — lenders still apply income limits
- Get pre-approval from a VA-approved lender (not all lenders specialize in VA)
- Budget closing costs beyond the funding fee (appraisal, title, escrow)
- Verify property meets VA minimum property requirements (MPRs)
- Compare VA vs FHA vs conventional in the Mortgage Calculator
Calculator Methodology
The VA Loan Calculator uses standard amortization on the loan amount including any financed funding fee:
Payment = P × r(1 + r)^n / ((1 + r)^n - 1)Assumptions: 30-year fixed, funding fee added to principal if financed, no PMI line item.
Limitations: Does not replace lender underwriting, VA appraisal, or county loan limit checks. Rates and fees vary by lender. Not a Loan Estimate.
Related Reading
- FHA vs Conventional vs VA Loans — side-by-side costs
- How to Find and Vet a Mortgage Lender — choose a VA-approved lender
- DTI & Mortgage Prequalification Guide — income rules lenders apply
- VA Loan Calculator — personalize with your COE and quote
Official and Supporting Sources
- VA — Eligibility for VA home loan programs
- VA — VA funding fee and loan closing costs
- CFPB — VA loans
Next Step
Enter your home price, rate, down payment, and funding fee in the VA Loan Calculator to see principal, interest, and total monthly housing cost with no PMI.
Frequently Asked Questions
Who qualifies for a VA home loan?
Eligible veterans, active-duty members, National Guard and Reserve with qualifying service, and some surviving spouses who obtain a Certificate of Eligibility (COE). Wartime service generally requires 90 continuous days; peacetime service often requires 181 days. Guard and Reserve members may qualify after six years of service or qualifying active duty. Lenders still verify income, credit, and ability to repay — VA backing reduces lender risk but does not guarantee approval.
Can I get a VA loan with bad credit?
VA does not set a minimum credit score, but lenders typically want 620+ for best terms. Some lenders work with scores in the 580 range at higher rates or with compensating factors such as low debt-to-income (DTI) ratio or reserves. VA backing reduces lender risk but does not override underwriting. Shop multiple VA-approved lenders if your score is below 620.
What is the VA funding fee in 2026?
For first use with no down payment, the fee is typically 2.15% of the loan amount. It can be paid at closing or financed into the loan. Veterans with service-connected disabilities are often exempt. Subsequent use at 0% down carries a 3.30% fee unless you make a 5% or greater down payment, which lowers the fee tier.
Do VA loans require PMI?
No. VA loans do not require private mortgage insurance (PMI) or Federal Housing Administration (FHA)-style mortgage insurance premium (MIP). Instead, most borrowers pay a one-time VA funding fee. Skipping monthly insurance saves roughly $150 to $250 per month versus comparable conventional or FHA financing with low down payments.
Can I use a VA loan more than once?
Yes, if you have remaining entitlement or restore entitlement after selling a prior VA-financed home and paying off the VA loan. Second-use funding fees are higher at 0% down. A down payment of 5% or more reduces the fee. You can also have two VA loans simultaneously in some cases if you have sufficient remaining entitlement.
VA loan vs FHA loan: Which is cheaper monthly?
For eligible borrowers, VA is usually cheaper because there is no monthly mortgage insurance. FHA charges upfront and annual MIP that often lasts for the life of the loan with less than 10% down. On a $350,000 home, VA at 0% down often runs $150 to $250 less per month than FHA at 3.5% down, before counting the funding fee financed into the VA balance.
Related guides
- FHA vs Conventional vs VA Loans - Guide (2026) Compare FHA, conventional, and VA loans in 2026. See which loan type saves the most in monthly payments and upfront cash based on your credit score. Free guide.
- 30-Year vs 15-Year Mortgage - Savings (2026) Compare 30-year vs 15-year mortgage payments and total interest in 2026. See how $200/month extra on a 30-year can match a 15-year payoff. Free calculator.
- Closing Costs Explained - What to Expect (2026) How much closing costs really are in 2026. On a $300k home, expect $6k to $18k. See what each fee covers and how to reduce your total cash-to-close. Free guide.
- DTI & Mortgage Prequalification Guide (2026) Learn front-end and back-end debt-to-income (DTI) ratio limits for mortgage prequalification. Free DTI calculator with the 28/36 rule. CFPB-sourced guide.
- FHA Loan Qualifications & Requirements (2026) See FHA loan qualifications for 2026: 580 credit score, 3.5% down, debt ratio limits, and mortgage insurance costs. Free FHA loan calculator included.