The VA home loan is widely considered the best mortgage product in America — and for good reason. Zero down payment, no PMI, competitive rates, and flexible credit requirements make it an incredible benefit for those who've served our country. But understanding the requirements can feel overwhelming.
In this comprehensive guide, we break down everything you need to know about VA loan requirements in 2026 — from eligibility and the Certificate of Eligibility to credit scores, the funding fee, and all the benefits that make VA loans unbeatable.
Who Is Eligible for a VA Loan?
VA loan eligibility is based on your military service. You may qualify if you fall into one of these categories:
Active-Duty Service Members
If you're currently serving on active duty, you're eligible after 90 continuous days of service. This applies regardless of whether you've been deployed or served entirely stateside.
Veterans
Eligibility depends on when and how long you served:
| Service Period | Minimum Active Duty |
|---|---|
| Gulf War era (Aug 2, 1990 – present) | 24 continuous months OR 90 days with honorable discharge |
| Post-Vietnam (May 8, 1975 – Aug 1, 1990) | 24 continuous months OR full period called to active duty |
| Vietnam era (Aug 5, 1964 – May 7, 1975) | 90 days active duty |
| Korean War (June 27, 1950 – Jan 31, 1955) | 90 days active duty |
| WWII (Sept 16, 1940 – July 25, 1947) | 90 days active duty |
National Guard and Reserve Members
Guard and Reserve members qualify after 6 years of service in the Selected Reserve or National Guard. If you were activated for federal active duty, you may qualify sooner under the active-duty requirements above.
Surviving Spouses
Un-remarried surviving spouses of veterans who died in service or from a service-connected disability are eligible. Surviving spouses who remarried after age 57 (and after December 16, 2003) may also qualify.
The Certificate of Eligibility (COE)
Your COE is the document that proves to lenders you qualify for a VA loan. Getting one is easier than you might think:
- Through your lender — Most VA-approved lenders can pull your COE electronically through the VA's Web LGY system. This takes minutes, not weeks.
- Through eBenefits — You can request your COE online at eBenefits.va.gov
- By mail — Submit VA Form 26-1880 to your regional VA loan center (slowest option)
Documents you'll need:
- DD Form 214 (for veterans)
- Statement of Service (for active duty — signed by your commanding officer or personnel office)
- NGB Form 22 or equivalent (for National Guard)
- Retirement points statement (for Reserve members)
Don't have your DD-214? Your lender can often pull your COE without it through the VA's electronic system. If you need a replacement, request one through the National Archives at eVetRecs.
Check Your VA Eligibility in Minutes
Take our free quiz to see if you qualify for a VA loan and get matched with a VA-approved lender.
Check My Eligibility →VA Loan Credit Requirements
Here's one of the best things about VA loans: the VA itself sets no minimum credit score. That's right — the Department of Veterans Affairs doesn't require a specific credit score to guarantee a loan.
However, individual lenders set their own minimums, which typically break down like this:
| Lender Type | Typical Minimum Score |
|---|---|
| Major banks | 620-640 |
| Credit unions | 600-620 |
| VA-specialty lenders | 580-600 |
| Manual underwriting | No minimum (case-by-case) |
If your credit score is below 620, don't assume you're out of luck. Many lenders that specialize in VA loans work with lower scores, and manual underwriting allows a human underwriter to review your complete financial picture rather than relying solely on a credit score.
Tips to strengthen your VA loan application:
- Pay down credit card balances below 30% of limits
- Don't open new accounts in the months before applying
- Dispute any errors on your credit reports
- Make all payments on time for at least 12 months
- Keep old credit accounts open (length of history matters)
Income and Debt-to-Income Requirements
The VA uses a residual income approach rather than relying solely on debt-to-income (DTI) ratios. This means they look at how much money you have left over each month after paying all your obligations — a more holistic view of affordability.
Debt-to-income ratio: Most VA lenders prefer a DTI of 41% or below, but this is a guideline, not a hard limit. With strong compensating factors (excellent credit, significant savings, or high residual income), DTI ratios up to 50-55% may be approved.
Residual income minimums vary by region and family size. For example, a family of four in the South needs approximately $1,003/month in residual income after all debts and housing costs.
Employment: Lenders typically want to see 2 years of stable employment, but this doesn't have to be with the same employer. Recently separated veterans can use their military service to satisfy this requirement.
The VA Funding Fee Explained
The funding fee is a one-time charge that helps sustain the VA loan program. Here are the 2026 rates:
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (zero down) | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a $300,000 loan with zero down (first use): the funding fee would be $6,450. This can be financed into the loan, so your new loan amount would be $306,450.
Who is exempt from the funding fee?
- Veterans receiving VA disability compensation
- Veterans rated eligible for VA compensation but receiving retirement or active-duty pay instead
- Surviving spouses of veterans who died in service or from service-connected disabilities
- Active-duty Purple Heart recipients
If you're receiving any VA disability rating, you're exempt — and if you're awarded a disability rating after closing, you may be entitled to a refund of the funding fee.
VA Loan Benefits: Why It's the Best Mortgage in America
No Down Payment
This is the headline benefit. VA loans require absolutely zero down payment, regardless of the purchase price. There's no loan amount cap for borrowers with full entitlement — you could buy a $500,000 or even $1,000,000 home with zero down if you qualify based on income.
No Private Mortgage Insurance (PMI)
Conventional loans require PMI when you put down less than 20%, costing $100-$400/month on a typical loan. FHA loans charge mortgage insurance for the life of the loan. VA loans never charge PMI — period. This saves VA borrowers thousands of dollars per year.
Lower Interest Rates
Because the VA guarantees a portion of the loan, lenders face less risk, which translates to lower rates for borrowers. VA loan rates are typically 0.25% to 0.50% lower than comparable conventional rates. On a $300,000 loan, that's $40-$80/month in savings.
Limited Closing Costs
The VA restricts which closing costs can be charged to veteran borrowers. Certain fees — like attorney charges, real estate agent commissions, and prepayment penalties — are specifically prohibited. Sellers can pay up to 4% of the purchase price toward the veteran's closing costs.
No Prepayment Penalty
You can pay off your VA loan early, make extra payments, or refinance without any penalty. This gives you maximum flexibility to reduce your interest costs over time.
Reusable Benefit
Your VA loan benefit isn't one-and-done. You can use it multiple times throughout your life. Once you pay off a VA loan or sell the property, your entitlement is restored. Some veterans can even have two VA loans simultaneously.
Foreclosure Avoidance Support
If you ever struggle to make payments, the VA offers counseling and works with lenders to help you avoid foreclosure. VA loans have the lowest foreclosure rate of any mortgage type — a testament to the support system in place.
Ready to Use Your VA Benefit?
Take our 2-minute quiz to get a personalized assessment and connect with a VA loan specialist.
Take the Quiz →VA Loan Property Requirements
The home you're purchasing must meet certain standards:
- Primary residence only — you must intend to live in the home. VA loans can't be used for investment properties or vacation homes.
- VA appraisal — a VA-assigned appraiser will evaluate the property to ensure it meets Minimum Property Requirements (MPRs) and determine fair market value.
- Eligible property types: single-family homes, condos (in VA-approved projects), multi-unit properties (up to 4 units, if you live in one), and manufactured homes on permanent foundations.
The VA appraisal is designed to protect you. If the appraiser identifies safety or structural concerns, the seller must make repairs before closing. If the home appraises for less than the purchase price, you can renegotiate, cover the difference, or walk away.
How to Apply for a VA Loan: Step by Step
- Confirm your eligibility — determine your service meets the minimum requirements
- Get your COE — or let your lender pull it electronically
- Get pre-approved — a lender reviews your finances and issues a pre-approval letter
- Find a home — work with a real estate agent experienced with VA purchases
- Make an offer — include the VA escape clause (required for VA loans)
- VA appraisal — the lender orders a VA appraisal
- Underwriting — your file goes through final review
- Closing — sign documents and get your keys
The entire process typically takes 30-45 days from contract to closing, comparable to conventional loans.
Common VA Loan Mistakes to Avoid
- Not shopping multiple lenders — rates and fees vary significantly between VA lenders. Get at least 3 quotes.
- Assuming you don't qualify — many veterans with less-than-perfect credit or non-traditional income sources still qualify.
- Skipping the pre-approval — in competitive markets, sellers take pre-approved buyers more seriously.
- Not using a VA-savvy real estate agent — VA transactions have unique requirements; work with someone experienced.
- Making large purchases before closing — don't buy a car, open new credit cards, or make major financial changes between pre-approval and closing.
Frequently Asked Questions
What are the VA loan requirements in 2026?
You need qualifying military service, a Certificate of Eligibility (COE), sufficient income to repay the loan, and a credit score of typically 580-620+. There is no down payment requirement and no PMI.
What credit score do I need for a VA loan?
The VA itself sets no minimum credit score. However, most lenders require a minimum of 580-620. Some lenders specialize in lower credit scores for VA borrowers, and manual underwriting is available for unique situations.
How much is the VA funding fee in 2026?
For first-time use with zero down, the funding fee is 2.15% of the loan amount. For subsequent use with zero down, it's 3.3%. Veterans with service-connected disabilities are exempt from the fee entirely.
Related reading: Can You Buy a Home With No Money Down? · Zero Down Payment Home Loans: Complete Guide · First-Time Homebuyer Programs in Texas