VA Home Loans

By Steven Parangi  |  Updated: May 25, 2026

VA home loans provide veterans, active duty service members and eligible surviving spouses with a federally guaranteed home loan that requires no down payment, no monthly mortgage insurance and offers some of the lowest interest rates available in the mortgage market. Established in 1944 as part of the original Servicemen's Readjustment Act (the GI Bill), the VA loan program is one of the best homebuying benefits available to those who have served.

Alpine Mortgage provides VA loans in California, Colorado, Connecticut, Florida, Georgia, New Jersey, New York, Ohio, Pennsylvania, and Texas. This page covers everything veterans and active duty service members need to know about VA loans in 2026.

What is a VA Loan?

A VA loan is a type of mortgage loan provided by lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The VA doesn't lend money directly. Instead, it guarantees a portion of the loan which reduces lender risk and allows lenders to offer borrowers significantly better terms than they could get with conventional financing. This federal guarantee is why VA loans offer the unique combination of zero down payment, no monthly mortgage insurance and rates that are usually lower than conforming conventional rates. For most eligible veterans and service members a VA loan is the strongest financing option available.

Types of VA Loans

VA Loan vs Conventional vs FHA: Which Should You Choose?

VA loans aren't always the right choice for every veteran. Here's how the three major loan programs compare for an eligible borrower in 2026:

Feature	VA Loan	FHA Loan	Conventional
Down payment	0%	3.5% minimum	3-5% minimum
Mortgage insurance	None (funding fee one-time)	Upfront MIP + monthly MIP for life of loan	PMI until 20% equity, then drops off
Credit score	Typically 620+ (no VA minimum)	580+ for 3.5% down	620+ minimum
Loan limit	None (full entitlement)	$541,287-$1,249,125	$832,750-$1,249,125
Interest rate	Typically lowest available	Competitive with conventional	Market rate
Funding fee / upfront costs	2.15% first use (waived for disabled veterans)	1.75% UFMIP (no exemption)	No upfront fee
Property occupancy	Primary residence only	Primary residence only	Primary, second, or investment
Eligibility	Veterans, service members, surviving spouses	Open to all qualifying borrowers	Open to all qualifying borrowers

VA Loan Eligibility Requirements

VA loan eligibility is based on military service, credit, income, and the property being financed. Here's what you need to qualify:

Military Service Requirements

You're generally eligible for a VA loan if you meet one of these service requirements:

• Active duty during wartime: 90 consecutive days of active service
• Active duty during peacetime: 181 consecutive days of active service
• National Guard or Reserves: 6 years of service or 90 days of active duty under Title 10 orders
• Currently active-duty service members: 90 continuous days of service
• Surviving spouses: Spouses of veterans who died in service or from service-connected causes (with restrictions)
• Discharge requirements: Other than dishonorable discharge required

For complete details, review the VA's Eligibility Guidelines. Some borrowers with less-than-honorable discharges may still qualify after a VA review.

Certificate of Eligibility (COE)

The Certificate of Eligibility (COE) is the document that verifies your VA loan eligibility based on your military service. You'll need a COE before closing on a VA loan. Most lenders, including Alpine, can pull your COE electronically in minutes using your Social Security number through the VA's WebLGY system. You can also request a COE yourself through several channels:

• Online: Through VA.gov (fastest, typically same-day)
• By mail: Submit VA Form 26-1880 (allow 4-6 weeks)
• Through your lender: Alpine can typically pull it in minutes during your application

If you've used a VA loan before, the COE will also show your entitlement status, which is critical for understanding how much you can borrow without a down payment.

Credit Score Requirements

The VA itself does not set a minimum credit score requirement for VA loans. However, individual lenders set their own credit score "overlays" based on their risk tolerance. Industry standards for 2026:

• 620 FICO: Most common minimum across VA lenders. Allows automated underwriting approval through the VA's Loan Guaranty Service.
• 580-619 FICO: Some lenders work in this range with compensating factors like strong residual income, stable employment, or larger reserves.
• Below 580 FICO: Approval is more difficult but not impossible. Manual underwriting may be required.
• 720+ FICO: Best available rates and most flexible terms.

If your credit score is borderline, focus on the factors that matter most: payment history (no late payments in last 12 months), credit utilization (under 30%), and avoiding new credit applications during the loan process.

Residual Income Requirements

One thing that makes VA loans unique: instead of relying solely on a debt-to-income (DTI) ratio like conventional and FHA loans, the VA uses a "residual income" calculation. Residual income is the amount of money left over after paying your monthly debts (including the new mortgage payment), federal and state taxes, Social Security and a basic family living allowance.

The VA publishes residual income tables by region (Northeast, Midwest, South, West) and family size. For example, a family of 4 in the Northeast region needs approximately $1,158 in residual income for loans over $80,000. Meeting the residual income requirement is critical, often more important than the DTI ratio. Some borrowers with higher DTI ratios still qualify because their residual income exceeds VA standards.

Property Requirements

VA loans require the property to meet VA Minimum Property Requirements (MPRs), which are checked during the VA appraisal:

• Primary residence: Borrower must occupy within 60 days of closing
• Safe and structurally sound: No major safety, structural, or mechanical issues
• Functional water, sewer, electrical, and HVAC systems
• Lead based paint: Properties built before 1978 require lead-based paint disclosures and possible remediation
• Roof: At least 2-3 years of useful life remaining
• No infestations: Termite inspection required in many states

VA appraisals are stricter than conventional appraisals on safety and habitability but generally similar on valuation methodology.

Eligible Property Types

• Single family homes
• 2-4 unit multi-family homes (with borrower occupancy on one unit)
• VA approved condominiums
• Townhouses and planned unit developments (PUDs)
• Manufactured homes that meet VA standards (more restrictive)
• New construction (with phase inspections)

VA loans cannot be used for vacation homes, second homes or pure investment properties.

VA Loan Limits in 2026

VA loans work differently from conventional and FHA loans when it comes to limits. The Blue Water Navy Vietnam Veterans Act of 2019 eliminated VA loan limits for borrowers with full entitlement effective January 1, 2020. Today:

• Full entitlement borrowers: No VA loan limit. You can borrow as much as a lender will approve based on income, credit and lender guidelines.
• Partial entitlement borrowers: The VA references the FHFA conforming loan limit for your county. In 2026, that's $832,750 in most counties, up to $1,249,125 in high-cost counties.

For partial entitlement borrowers, loans above the county limit are still possible but typically require a down payment covering 25% of the difference between the loan amount and the county limit.

For a deeper breakdown of how 2026 VA loan limits work, see our 2026 Loan Limits by County resource, which includes VA loan limits.

VA Loan Benefits

VA Loan Funding Fee

The VA funding fee is a one-time fee paid to the VA that helps keep the program running without taxpayer subsidies. The fee can be paid in cash at closing or rolled into the loan amount. For 2026, the funding fee varies based on down payment, first vs. subsequent use and loan type:

• First time use, 0% down: 2.15% of loan amount
• First time use, 5%-9.9% down: 1.50%
• First time use, 10%+ down: 1.25%
• Subsequent use, 0% down: 3.30%
• VA IRRRL (streamline refinance): 0.50%

Funding fee exemptions: Veterans receiving VA compensation for a service connected disability, those entitled to receive disability compensation but receiving retirement pay instead, surviving spouses of veterans who died in service or from a service connected disability and Purple Heart recipients on active duty are exempt from the funding fee entirely.

For the complete 2026 funding fee schedule and detailed exemption rules, see our VA Funding Fee page.

The VA Loan Process

The VA loan process involves several steps, from determining eligibility to closing on the loan. Here is an overview of the process:

• Determine Eligibility: Obtain a Certificate of Eligibility (COE) from the VA. This document verifies that you meet the service requirements for a VA loan. You can apply for a COE through the VA's Benefits portal, by mail, or through your lender.
• Pre-Approval: Once you have your COE, you can seek pre-approval from a VA-approved lender. Pre-approval involves a preliminary review of your credit and financial information to determine how much you can borrow.
• Find a Home: Work with a real estate agent to find a home that meets your needs and VA property requirements. Make an offer on the home and negotiate the terms of the sale.
• VA Appraisal: After your offer is accepted, your lender will order a VA appraisal to ensure the home meets the VA's property requirements and is worth the purchase price. The appraisal also includes a basic inspection of the property's condition.
• Underwriting: The lender's underwriting team will review your loan application, credit history, income, and the VA appraisal to determine if you meet their lending criteria. This step may involve providing additional documentation.
• Closing: Once all condtions are cleared, you will sign final loan documents at closing, pay any remaining closing costs and receive the keys to your new home.

How to Get Pre-Approved for a VA Loan

Getting pre-approved for a VA home loan is quick and easy with our online Loan Application. After completing the application, you will receive instructions on how to upload your documents. For a list of the documents you will need to upload, see our Pre-Approval Document Checklist.

Common VA Loan Scenarios

VA loans support a wide range of borrower situations. Some common scenarios:

Ready to Explore a VA Loan?

Whether you're a first time veteran buyer, an active duty service member with PCS orders, or a veteran considering refinancing, Alpine Mortgage has the VA loan expertise to guide you through every step. With over 20 years of helping veterans and service members, we'll structure the right loan for your situation. Alpine Mortgage provides VA loans in California, Connecticut, Colorado, Florida, Georgia, New Jersey, New York, Ohio, Pennsylvania and Texas.

Or call (201) 488-8809 to speak with an Alpine VA loan specialist today.

VA Loans FAQs

VA Loans Resources

• VA Loan Interest Rates
• VA IRRRL Streamline Refinance
• How Many Times Can You Use a VA Loan
• VA Funding Fee Rates