What credit score is needed for a VA loan?

There is no official minimum credit score set by the VA, but individual lenders typically require a score between 580 and 660. Some lenders may accept lower scores. It is best to ask your lender directly for their specific credit requirements.

Can I use a VA loan more than once?

Yes, you can reuse a VA loan benefit as long as you have restored your entitlement. This can happen after you sell the home and pay off the loan, or after a one-time restoration if you have already used your entitlement but still own a property. Contact the VA or your lender to check your current entitlement status.

What are the closing costs for a VA loan?

Closing costs on a VA loan include the VA funding fee, appraisal fee, title insurance, recording fees, and prepaid items such as property taxes and homeowners insurance. The seller may pay some of these costs as part of the purchase agreement. Always review the Loan Estimate from your lender for an itemized breakdown.

VA Loan Guide: What Is a VA Loan?

Reviewed by the LoanPolicies Editorial Team · Updated 2026-09-05

Learn what a VA loan is, the eligibility requirements, and key benefits like no down payment. Understand the mortgage process and compare lenders.

A VA loan is a mortgage option guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. This government-backed loan offers competitive terms including no down payment and no private mortgage insurance requirement, making homeownership more accessible for those who have served.

Who Is Eligible for a VA Loan?

Eligibility for a VA loan depends on service requirements set by the Department of Veterans Affairs. Generally, veterans who served on active duty, members of the National Guard or Reserves with a certain length of service, and surviving spouses of service members who died in the line of duty may qualify. A Certificate of Eligibility (COE) is needed to prove entitlement. As a general rule, you should confirm your eligibility with a mortgage lender or the VA before beginning the application process.

Key Benefits of a VA Loan

No down payment required – You can finance 100% of the home’s purchase price, which can significantly reduce upfront costs.
No private mortgage insurance (PMI) – Unlike many conventional loans, VA loans do not require ongoing mortgage insurance premiums, lowering your monthly payment.
Competitive interest rates – Because the loan is government-backed, lenders often offer lower APRs compared to other loan types.
Flexible credit score guidelines – While individual lenders set their own requirements, VA loans generally accept lower credit scores than conventional mortgages.
Assumable loan option – If you sell your home, a qualified buyer may take over the existing VA loan, potentially adding value for the seller.

Understanding VA Loan Costs and Fees

Even with no down payment, a VA loan includes certain costs. The most notable is the VA funding fee, a one-time charge that helps offset taxpayer costs. The fee varies based on your down payment amount, loan type, and whether you have used the benefit before. Some borrowers may be exempt if they receive VA disability compensation. Additionally, you will encounter typical closing costs such as appraisal fees, title insurance, and escrow charges. Your lender will provide a Loan Estimate detailing all fees, and you can compare offers to find the best loan term and APR.

How to Apply for a VA Loan

Applying for a VA loan involves several steps. First, obtain your Certificate of Eligibility through the VA’s online portal or by asking your lender to request it. Next, shop for a lender who understands VA loan requirements. You will need to submit financial documents, including pay stubs, tax returns, and bank statements. The lender will review your credit score and debt-to-income ratio to determine your loan amount. Once approved, the property undergoes a VA appraisal to confirm its value meets minimum standards. After underwriting, you move to closing, where final paperwork is signed and funds are disbursed.

Comparison: VA Loan vs. Conventional Loan
Feature	VA Loan	Conventional Loan
Down Payment	0% (typical)	3%–20% (varies)
Private Mortgage Insurance	Not required	Required if down payment <20%
Credit Score Flexibility	Often lower thresholds	Higher typical minimums
Funding Fee	Yes (unless exempt)	No equivalent fee

Keep in mind that these are general guidelines. Your specific situation — including credit history, property type, and lender policies — will influence the final terms. Always discuss your options with a qualified mortgage professional to make an informed decision aligned with your financial goals.

Ready to Find Your Loan?

Compare personalized loan offers from top lenders. Checking rates won't affect your credit score.

Check My Rate

The lowest rates are only available to the most qualified applicants.