VA loans: the strongest mortgage benefit most people can't get
For eligible veterans, active-duty service members, and some surviving spouses, the VA loan is the best mortgage in America: zero down payment, no monthly mortgage insurance, and a rate that runs below conventional — currently around 6.05%. The only real cost is a one-time funding fee.
The Department of Veterans Affairs guarantees a portion of the loan, which lets lenders offer terms no civilian program can match. There is no down payment requirement and no monthly mortgage insurance — the two costs that make other low-down-payment loans expensive. For a qualifying borrower, that combination can save hundreds a month versus an FHA or conventional loan on the same house.
In place of insurance, the VA charges a one-time funding fee, typically 2.15% of the loan for a first use with no down payment, which can be rolled into the loan. Veterans with a service-connected disability are exempt from the fee entirely. Because there is no ongoing insurance, the funding fee is usually far cheaper over time than FHA or conventional PMI.
Eligibility is the gate: you need a valid Certificate of Eligibility based on your service history. You can use the benefit more than once, and even restore it after selling a VA-financed home. If you qualify, a VA loan almost always beats the alternatives — compare the monthly payment against an FHA loan to see the gap.
Questions people ask
Do VA loans really require no down payment?
Yes — full-entitlement borrowers can finance 100% of the purchase price up to the conforming loan limit with nothing down. Putting money down is optional and reduces the funding fee, but it is not required.
What is the VA funding fee?
A one-time charge that replaces mortgage insurance — commonly 2.15% of the loan on a first use with no down payment, and lower with a down payment or on subsequent uses. It can be financed into the loan, and veterans with a service-connected disability are exempt.
Who is eligible for a VA loan?
Veterans, active-duty service members, National Guard and Reserve members who meet service-length requirements, and some surviving spouses. You prove eligibility with a Certificate of Eligibility (COE) from the VA.
Can I use a VA loan more than once?
Yes. The benefit is reusable, and your entitlement is restored when you sell a home financed with a VA loan and pay it off. You can even hold two VA loans at once in some circumstances.