A retired Staff Sergeant walked into our office two years ago, certain he had missed his window. He had been out of the military for over a decade. He assumed the VA loan benefit expired at some point, like an old coupon. It does not. He closed on a $420,000 home six weeks later with zero dollars down and no monthly mortgage insurance.
Your VA loan benefit does not expire. And in 2026, it remains the single best mortgage program available to anyone, anywhere.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and certain surviving spouses.
Like FHA, the VA does not lend directly. It guarantees a portion of the loan, which reduces lender risk and results in benefits you will not find with any other mortgage: no down payment, no private mortgage insurance, and competitive interest rates. The program was created as part of the original GI Bill in 1944 and has helped millions of veterans become homeowners.
According to the VA, more than 1.2 million VA-backed home loans were guaranteed in fiscal year 2024. The program is not just a token benefit. It is the most-used mortgage advantage for those who served.
VA Loan Benefits at a Glance
No down payment required. You can finance 100% of the home price. On a $400,000 home, that means $0 out of pocket for the down payment (closing costs still apply).
No private mortgage insurance (PMI). Conventional borrowers who put less than 20% down pay PMI, often $150 to $300 per month. VA borrowers never pay it.
No loan limit for full entitlement. Since January 2020, veterans with full entitlement have no cap on how much they can borrow with zero down. There is no $806,500 conforming limit restriction. If you qualify for a $900,000 home, you can finance all of it.
Competitive interest rates. VA rates are typically 0.25% to 0.50% lower than conventional rates. According to data from the VA and ICE Mortgage Technology, VA loans have consistently offered the lowest average rates of any major loan type.
Easier qualification. No official minimum credit score from the VA itself (though most lenders set a floor around 620). More flexible DTI ratios, with many lenders approving up to 50% or higher.
VA Loan Eligibility: Who Qualifies?
You may be eligible if you fall into one of these categories:
- Veterans who served 90 consecutive days during wartime or 181 days during peacetime
- Active-duty service members after 90 continuous days of service
- National Guard and Reserve members after 6 years of service (or 90 days of active-duty deployment)
- Surviving spouses of service members who died in the line of duty or from a service-connected disability (who have not remarried, or who remarried after age 57)
Your first step is obtaining your Certificate of Eligibility (COE). You can get this through the VA's eBenefits portal, by mail using VA Form 26-1880, or your lender can pull it electronically in minutes.
The VA Funding Fee in 2026
The VA funding fee is a one-time charge that keeps the program running without requiring monthly mortgage insurance. Here are the 2026 rates:
On a $400,000 loan with zero down (first use), the funding fee is $8,600. Most borrowers roll it into the loan rather than paying upfront.
Who is exempt from the funding fee? Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation. If you qualify for an exemption, that saves you thousands.
VA vs. FHA vs. Conventional: Side-by-Side Comparison
For veterans, the choice is almost always clear: VA wins on cost. The combination of zero down, no PMI, and lower rates creates thousands in savings over the life of the loan. The only reason a veteran might choose conventional is if they have 20%+ down and want to preserve their VA entitlement for a future purchase.
How to Get a VA Loan: Step by Step
- Confirm your eligibility. Check your service history against the VA's minimum requirements. If you are unsure, a quick call to the VA at 1-877-827-3702 or a conversation with your lender can confirm.
- Obtain your Certificate of Eligibility (COE). Your lender can pull this electronically through the VA's Web LGY system, often in under a minute.
- Get pre-approved. A VA-savvy lender will review your credit, income, and COE to determine how much you can borrow. Get pre-approved with CMS Mortgage, where our team has 20+ years of experience with VA loans.
- Find a home and make an offer. Work with a real estate agent experienced with VA transactions. Some sellers have outdated misconceptions about VA offers, so an informed agent matters.
- Complete the VA appraisal. The VA assigns an independent appraiser to verify the home meets Minimum Property Requirements (MPRs) and the value supports the loan amount.
- Close on your home. Review your Closing Disclosure, sign the paperwork, and pick up your keys. VA loans typically close in 30 to 45 days.
Common VA Loan Myths
"I can only use my VA loan once." False. You can reuse your VA benefit multiple times. You can even have two VA loans at once if you have enough remaining entitlement.
"VA loans are slow and difficult." According to ICE Mortgage Technology, VA loans close at a rate comparable to conventional loans. The difference often comes down to the lender, not the loan type. Working with a lender experienced in VA lending eliminates most delays.
"Sellers do not like VA offers." Some sellers worry about the VA appraisal being stricter. In practice, the VA appraisal protects you from overpaying for a home in poor condition. A strong offer with a VA pre-approval from a reputable lender carries real weight.
"I make too much money for a VA loan." There is no income limit for VA loans. Whether you earn $40,000 or $400,000, you are eligible if you meet the service requirements.
Frequently Asked Questions
Can I use a VA loan to buy a multi-unit property?
Yes. You can purchase a property with up to four units, as long as you live in one of them as your primary residence. The rental income from the other units can even help you qualify for a larger loan.
Can I use my VA loan benefit to refinance?
Yes. The VA offers two refinance options: the Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline, and the VA Cash-Out Refinance. The IRRRL requires minimal documentation and no appraisal in most cases.
What happens to my VA loan if I get deployed?
Your mortgage obligations continue during deployment, but the Servicemembers Civil Relief Act (SCRA) provides protections including interest rate caps at 6% on pre-service debts and protection from foreclosure during active duty and for a period after.
Can a surviving spouse assume a deceased veteran's VA loan?
Yes. A surviving spouse can assume the existing VA loan. In many cases, surviving spouses are also eligible for their own VA loan benefit.
Do I need to be a first-time buyer to use a VA loan?
No. The VA loan program has no first-time buyer requirement. You can use it whether you have owned homes before or not, and you can use it more than once.
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This content is for educational purposes and does not constitute financial advice. Loan terms and availability vary by borrower. CMS Mortgage is a Top 50 National Brokerage with access to 50+ lenders, including those specializing in VA loans. Connect with a VA loan specialist today.