If you are a veteran, active-duty service member, or a surviving spouse, the VA Home Loan Guaranty is one of the most valuable benefits available to you. This program is backed by the U.S. Department of Veterans Affairs and makes it easier for qualified buyers to purchase a home. Instead of lending money directly, the VA guarantees part of the loan through private lenders like banks, credit unions, and mortgage companies. By reducing the lender’s risk, you are able to access better terms and more affordable financing.
How the Program Works
The process begins with applying for a mortgage through a participating lender. Once approved, the VA guarantees a portion of the loan amount. This guarantee encourages lenders to offer more favorable terms that may not otherwise be available.
Key Benefits of a VA Loan
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No down payment is required as long as the purchase price does not exceed the appraised value.
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Interest rates are often lower than many conventional loan programs.
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Private mortgage insurance is not required, which saves you money each month.
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A one-time funding fee applies, typically ranging between 1.25 percent and 3.3 percent depending on your service status, down payment, and whether it is your first VA loan.
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Closing costs are limited and often lower than other loan types.
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The VA home loan benefit is available for life, which means you may be able to use it more than once.
Loan Limits and Borrowing Power
Since 2020, there has been no federal maximum loan limit for veterans with full entitlement. Lenders may still reference conventional loan limits, which in 2025 are set at approximately 806,500 dollars, when determining whether a loan qualifies as jumbo.
Who is Eligible
Eligibility depends on your service history and status. In most cases, you may qualify if:
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You are currently serving on active duty with at least 90 consecutive days of service.
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You are a veteran who has served at least 24 continuous months, or met other specific service requirements.
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You are a member of the National Guard or Reserves who has met the minimum service requirements.
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You are an unmarried surviving spouse of a veteran who meets eligibility criteria.
To move forward, you will need a Certificate of Eligibility, also called a COE. This document can be requested through your lender, online, or by submitting VA Form 26-1880 by mail.
Loan Assumptions
VA loans are assumable, which means another qualified buyer may take over your loan when purchasing your home. This is especially attractive if your loan has a lower interest rate than current market rates. Keep in mind that the buyer usually needs to provide funds to cover your equity in the property.
Why Work With a REALTOR®
A REALTOR® is uniquely positioned to help veterans and military families navigate the VA loan process. REALTORS® follow a strict code of ethics and many have earned the Military Relocation Professional certification, which focuses on serving clients with military backgrounds. Thanks to recent legislation, veterans are now able to compensate their real estate agents directly. This change provides more opportunities for veterans to compete in today’s competitive housing market.
Ready to Learn More?
If you’re considering using your VA loan benefit, we would be honored to help. We can connect you with a trusted mortgage lender and answer any questions you or your family may have along the way.
