If you are eligible for a [PRIMARY_KW], use it. That is not an exaggeration. VA loans routinely outperform conventional and FHA mortgages for qualifying borrowers. No down payment. No private mortgage insurance. Rates that are typically 0.25 to 0.50 percentage points below conventional. The ability to finance 100% of the purchase price. These are genuinely exceptional terms that save tens of thousands of dollars over the life of a mortgage.
Who Qualifies for a VA Loan?
VA loan eligibility is based on military service. Generally, you qualify if you are:
- A veteran who served at least 90 consecutive days during wartime, or 181 days during peacetime
- An active-duty service member with 90+ days of continuous service
- A National Guard or Reserve member with 6 years of service (or 90 days of active duty during a qualifying period)
- An un-remarried surviving spouse of a service member who died in the line of duty or from a service-related disability
Obtain your Certificate of Eligibility (COE) through the VA's eBenefits portal, through your lender, or by submitting VA Form 26-1880. Most VA-approved lenders can obtain the COE on your behalf during the application process.
VA Loan Benefits in Detail
No Down Payment Required
The most significant benefit. You can finance 100% of the purchase price, which means buying a $400,000 home without the $40,000 to $80,000 down payment a conventional loan might require. This does not mean no money needed at closing — you still pay closing costs and need reserves — but the down payment barrier is eliminated.
No Private Mortgage Insurance
Conventional loans require PMI when the down payment is below 20%. On a $350,000 loan, PMI adds $100 to $250 per month. VA loans have no PMI — ever. That saves $1,200 to $3,000 per year.
Competitive Interest Rates
VA loan rates average 0.25 to 0.50 percentage points below conventional rates. On a $350,000 30-year mortgage, 0.375% lower translates to approximately $27,000 in total interest savings.
No Prepayment Penalty
VA loans prohibit prepayment penalties. You can pay off early or make extra principal payments without fees.
The VA Funding Fee
The one cost unique to VA loans is the funding fee — a one-time charge of 1.25% to 3.30% of the loan amount that helps fund the VA loan program. The fee varies based on: whether it is your first use or subsequent use, your down payment amount, and your military category.
First-time use with no down payment: 2.15%. Subsequent use with no down payment: 3.30%. Putting 5% or more down reduces the fee to 1.5%. Putting 10% or more down reduces it to 1.25%. Veterans with service-connected disabilities are exempt from the funding fee entirely.
The funding fee can be rolled into the loan amount. Even with this fee, VA loans almost always cost less than conventional alternatives over time.
VA Loan Rates in 2025
As of May 2025, the average 30-year VA loan rate is approximately 6.68% — roughly 0.40% below the conventional average. See our current mortgage rates page for daily rate data.
VA Loan vs. Conventional vs. FHA
| Feature | VA Loan | Conventional | FHA |
|---|---|---|---|
| Down payment | 0% | 3%-20% | 3.5% |
| Mortgage insurance | None | PMI if <20% down | MIP for life (if <10% down) |
| Min. credit score | None official (620+ typical) | 620 | 580 |
| Rate vs. conventional | ~0.40% lower | Baseline | ~0.25% lower (but +MIP) |
| Funding fee | 1.25%-3.30% | None | 1.75% upfront MIP |
| Eligibility restriction | Military service required | Open | Open |