VA Loan Requirements 2026: Eligibility, Credit, Funding Fee & Limits (Plain English)
Zero down, no monthly mortgage insurance, and often a better rate. If you served, the VA loan might be the best deal in the mortgage world. Here is how to qualify.
- Who: eligible veterans, active-duty service members, many National Guard and Reserve members, and some surviving spouses.
- Down payment: 0% for most eligible borrowers.
- Mortgage insurance: none monthly. Instead there is a one-time funding fee (2.15% on a first-use, zero-down purchase in 2026).
- Loan limit: none if you have full entitlement.
- Credit score: VA sets no official minimum, but most lenders look for about 620.
If home loans were a video game, the VA loan would be the secret level you unlock by serving your country. No down payment, no monthly PMI, and lenders often price these loans competitively because the VA guarantees part of them. Let’s walk through the rules without the bureaucratic fog.
1. Service eligibility: who qualifies
You generally qualify if you meet one of the service requirements set by the Department of Veterans Affairs. Common examples:
- Veterans with enough active-duty service (for many, at least 90 consecutive days during wartime or 181 days during peacetime) and a discharge other than dishonorable.
- Active-duty service members, usually after 90 continuous days of service.
- National Guard and Reserve members with enough qualifying service (often 6 years, or 90 days of active duty under certain orders).
- Some surviving spouses of service members who died in service or from a service-connected disability.
The exact rules depend on when you served, so the real answer comes from your Certificate of Eligibility (COE).
2. Credit score and income
The VA does not publish a minimum credit score. Lenders who make VA loans set their own, and many land around 620. Some go lower with strong compensating factors.
Lenders also look at two income tests:
- Debt-to-income ratio (DTI): the VA uses 41% as a guideline, but it is not a hard cap.
- Residual income: the money left each month after the mortgage, debts and basic living costs. The VA sets minimums by region and family size. This is the VA’s way of checking you can actually live, not just pay the bank.
3. The VA funding fee (2026 chart)
Instead of monthly mortgage insurance, most borrowers pay a one-time funding fee. You can pay it at closing or roll it into the loan.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Who skips the fee? Veterans receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients are generally exempt. Ask your lender to check your COE.
4. Loan limits and entitlement
Since 2020, borrowers with full entitlement have no VA loan limit. The lender still decides how much you can afford based on income and credit. If you have a VA loan already (partial entitlement), county conforming loan limits come back into play — in most U.S. counties that is $832,750 for 2026.
5. Property rules
- The home must be your primary residence.
- It needs a VA appraisal that checks value and basic safety (“minimum property requirements”).
- You can buy a 1-to-4 unit property if you live in one unit.
VA vs FHA vs conventional
| VA | FHA | Conventional | |
|---|---|---|---|
| Minimum down | 0% | 3.5% | 3% (some programs) |
| Monthly mortgage insurance | None | Yes (MIP) | PMI under 20% down |
| Upfront fee | Funding fee (0–3.3%) | 1.75% UFMIP | Usually none |
| Who can use it | Eligible service members/veterans | Anyone who qualifies | Anyone who qualifies |
If you qualify for VA, it usually wins. Compare with our FHA requirements guide and all loan options, then run numbers in the mortgage calculator and closing cost calculator.
FAQ
Can I use a VA loan with bad credit?
Possibly. The VA has no official minimum score, but each lender sets one. If one lender says no, try another that specializes in VA loans.
Can I roll the funding fee into the loan?
Yes. Most borrowers finance it, which raises the loan amount slightly.
Can I get a VA loan for an investment property?
No. You must live in the home. With a 2-to-4 unit property, you can rent the other units while living in one.
Does a VA loan have closing costs?
Yes, like any mortgage. The VA limits some fees lenders can charge, and sellers can pay some of your costs.
Sources: U.S. Department of Veterans Affairs (VA home loan eligibility, funding fee chart effective April 7, 2023, still in effect for 2026); FHFA 2026 conforming loan limits.
Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.
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