VA Loan FAQ

For a purchase loan with no down payment: 2.15% of the loan amount on first use, 3.3% on subsequent use. Putting 5% down drops it to 1.5%; 10% or more drops it to 1.25%. IRRRL refinances are a flat 0.5%. Veterans receiving VA disability compensation and some others pay nothing.

Yes. Typical costs include the funding fee, lender charges (origination is capped at 1% when charged as a flat fee), third-party fees like appraisal and title, and prepaid taxes and insurance. The funding fee is the only cost you can finance into a purchase loan.

The buyer pays by default, but the seller can pay all ordinary closing costs — VA doesn't cap those credits. Extra 'concessions' (like paying your funding fee or prepaying your insurance) are capped at 4% of the home's reasonable value. Lender credits in exchange for a higher rate are another option.

On a purchase, only the funding fee can be rolled into the loan. On an IRRRL streamline refinance, the costs and fees can generally be included in the new loan amount.

Veterans receiving VA compensation for a service-connected disability are exempt from the funding fee — usually the largest single closing cost. Other closing costs (appraisal, title, prepaids) still apply unless the seller or lender covers them.

For borrowers with full entitlement, there is no VA loan limit — since 2020, VA doesn't cap the loan size in any county. Limits only apply if you have remaining entitlement (usually because you have another active VA loan), in which case county conforming loan limits determine how much you can borrow with zero down.

VA itself sets no minimum credit score. Most lenders look for about 620, though some go lower. A higher score earns a better interest rate, so improving credit before applying can be worth real money.

There's no limit on how many times you can use the benefit. Entitlement is restored when you sell the home and pay off the loan. You can even hold two VA loans at once in some situations, using remaining entitlement for the second.

Yes — surviving spouses of service members who died in the line of duty or from a service-connected disability may be eligible. Surviving spouses receiving Dependency and Indemnity Compensation (DIC) are also exempt from the funding fee.

Three ways: ask your VA-approved lender (fastest — often minutes), request it yourself through your VA.gov account, or mail VA Form 26-1880. The COE confirms your eligibility and shows your entitlement status.

Roughly the same as a conventional loan — typically 30 to 45 days. The VA appraisal and any required repairs are the most common sources of delay, so a clean, well-maintained home helps.

Sometimes. If you have remaining entitlement after an existing VA loan — common after a PCS move where you keep the old home — you can buy again with a second VA loan. A down payment may be required depending on the numbers.