What is a VA Home Loan?
VA home loans are ones guaranteed by the U.S. Department of Veterans Affairs. They were created by the government in 1944; since then, more than 24 million VA loans have been originated, helping veterans, active duty military members and their families purchase or refinance a home.
The fact that these loans are backed by a government agency makes lenders feel more comfortable in offering them, as they pose less risk. As a result, it’s possible to get a VA loan in Kansas City without a down payment, and with sometimes-looser credit requirements and lower interest rates than Conventional financing.
The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment.
How to Qualify for a VA Home Loan
- Have at least 90 consecutive days of active service during wartime or at least 181 consecutive days of active service during peacetime.
- Have more than six years of service in the National Guard or Selective Reserve.
- Be the surviving spouse of a service member who died while on active duty or from a service-connected disability and you have not remarried or remarried after age 57 or Dec. 16, 2003. Spouses of prisoners of war or service members missing in action are also eligible.
- Borrowers need to show they have the income to make the mortgage payments. We have a very wide variety of ways to help our Veterans, with options for credit scores from 500+.
- The Kansas City property you want to buy must meet safety standards and building codes and will be your primary residence.
- In order to go through the process, you need to obtain a VA Certificate of Eligibility (COE). We can help you retrieve your COE if you need help.
Types of VA Home Loans
- VA cash-out refinance – replaces your mortgage with a new loan while tapping some of your Kansas City home’s value for things like paying off debt or making home improvements. It also can be used to replace a non-VA loan with a VA loan.
- VA IRRRL (also called a streamline refinance loan) – you can replace an existing VA loan with a mortgage offering a lower interest rate, or move from an adjustable-rate loan to one with a fixed interest rate.
- VA renovation loans – let Kansas City borrowers buy or refinance a home and roll the cost of improvements into the mortgage.
- VA supplemental loans for home improvements – can be added to an existing mortgage or included in a VA refinance.
Benefits of a VA Home Loan
- You can buy a home with no down payment.
- There is no limit to the amount you can borrow on a VA loan.
- You won’t have to pay Private Mortgage Insurance (PMI, since the loans are backed by the government.
- Closing costs are the various fees and expenses you pay to get a mortgage. The Department of Veterans Affairs limits the lender’s origination fee to no more than 1% of the loan amount and prohibits lenders from charging some other closing costs.
- There’s no minimum credit score requirement.
- Mortgage rates are lower for VA home loans than for FHA and conventional mortgages.
- The VA offers assistance for struggling borrowers facing a potential foreclosure. The agency’s loan technicians can negotiate with lenders on behalf of borrowers who are having trouble making mortgage payments.
- There is no prepayment penalty. This means you won’t be fined if you pay off your loan early.
- You don’t need to be a first-time home buyer in order to get a VA loan. As long as you pay it off each time, you can use the benefit again and again.
- Bankruptcy and foreclosure won’t permanently affect your chances. If you’ve filed for bankruptcy or gone through a foreclosure, you can still qualify for a VA loan after two years have passed from the date of the bankruptcy or foreclosure.
Disadvantages of a VA Home Loan
- You’re required to pay a VA loan funding fee between 1.25% and 3.3% of the loan amount. The fee is usually included in the loan, so it increases your monthly payment and adds to the interest you pay over the life of the loan.
- A VA loan can only be used to buy or build a primary residence or to refinance an existing loan. So you won’t be able to buy an investment property or vacation home with one.
FAQ’s About VA Mortgages
If I have already obtained one VA loan, can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
Are the children of a living or deceased veteran eligible for the home loan benefit?
No, the children of an eligible veteran are not eligible for the home loan benefit.
What types of repayment options are available?
You have the choice of a traditional fixed payment (constant principal and interest), a graduated payment mortgage, or GPM (low initial payments which gradually rise to a level payment starting in the sixth year), and in some areas, growing equity mortgages, or GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan). There is no prepayment penalty.
What is the maximum amount for a VA loan in Kansas City?
Although there is no maximum VA loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum VA loan to $417,000.
While a VA loan is often used to purchase a home, it can also be used to construct a home. It’s also possible to use VA financing for a cash-out refinance or in conjunction with the Native American Direct Loan program. Finally, you can also use your VA loan benefits with adapted housing grants.
In the end, the VA loan program can be a big help to those who have sacrificed their country and want to achieve the dream of homeownership.
VA Loan Expert in Kansas City: McGowan Mortgages
Contact McGowan Mortgages today at (816) 631-9687.
VA Home Loans: Eligibility, Qualifications, Types & Programs
For veterans and active-duty service members, the VA home loan represents one of the most valuable benefits earned through military service. The program offers financing terms that civilian borrowers simply cannot access, including zero down payment, no mortgage insurance, and typically the lowest interest rates available. Understanding how VA loans work helps eligible borrowers take full advantage of a benefit designed specifically for those who have served.
VA home loans are government-guaranteed mortgages exclusively for eligible veterans, active-duty service members, and qualifying surviving spouses. The program offers zero down payment, no mortgage insurance requirement, and typically the lowest interest rates available. In 2026, there is no maximum loan limit for borrowers with full entitlement, meaning you can purchase any home you qualify for with $0 down. The VA does not lend directly; instead, it guarantees a portion of loans made by private lenders, reducing their risk and passing substantial savings to military borrowers.
Understanding VA loan eligibility and benefits helps you maximize an earned benefit that can save tens of thousands of dollars over the life of your loan.
Key Takeaways
- VA loans offer zero down payment and no mortgage insurance, benefits unavailable to civilian borrowers
- There is no VA loan limit for borrowers with full entitlement in 2026
- The VA guarantees loans made by private lenders; it does not lend money directly
- Eligibility extends to veterans, active-duty members, Guard/Reserve with qualifying service, and certain surviving spouses
- The VA funding fee can be financed into the loan or waived entirely for veterans with service-connected disabilities
- VA loan benefits are reusable and can be used multiple times throughout your lifetime
What Is a VA Loan and How Do VA Home Loans Work?
A VA loan is a mortgage benefit guaranteed by the U.S. Department of Veterans Affairs, designed to help military members achieve homeownership with favorable terms unavailable to civilian borrowers. The benefit is earned through military service and represents one of the most significant financial advantages available to those who have served.
How the VA Guarantee Works
The VA does not lend money directly. This is a common misconception. Instead, the VA guarantees up to 25% of the loan amount to private lenders. This guarantee replaces the mortgage insurance requirements that civilian borrowers face. Because lenders know the VA will cover a portion of losses in case of default, they accept more risk and offer better terms.
The result for borrowers: zero down payment required, no monthly mortgage insurance, and typically lower interest rates than conventional loans.
The VA Loan Process
- Verify eligibility and obtain Certificate of Eligibility (COE)
- Get pre-approved with a VA-approved lender
- Find eligible property (primary residence)
- Make an offer and sign the purchase agreement
- VA appraisal (confirms value and minimum property requirements)
- Underwriting and final approval
- Closing and funding
Highlight Box: The VA Guarantee Advantage
Because the VA guarantees a portion of your loan, lenders do not require the 20% down payment or private mortgage insurance that civilian borrowers need to offset their risk. This single benefit can save VA borrowers $50,000 to $100,000 or more over a conventional loan’s lifetime.
What Are the VA Home Loan Eligibility Requirements for Veterans and Active-Duty Service Members?
VA home loan eligibility is based on service history, discharge status, and category of service. The program sets defined thresholds for length and type of service rather than income or rank.
Reviewing these requirements early helps confirm whether you qualify before beginning the home-buying process. Verifying eligibility upfront also prevents delays later when applying for pre-approval.
Eligibility Categories
Active-Duty Service Members:
- Currently serving with at least 90 continuous days of active service
- Expected to continue serving or receive an honorable discharge
Veterans:
- Served 90+ consecutive days during wartime
- Served 181+ consecutive days during peacetime
- Served 24+ months (or full period called to duty) under current guidelines
- Discharged under conditions other than dishonorable
National Guard and Reserve Members:
- 90+ days of active service (Title 10 orders)
- 6+ years of honorable service in Guard/Reserve
- Discharged under conditions other than dishonorable
Service Requirement Table:
| Service Period | Minimum Active Duty | Notes |
| WWII through Korea | 90 days | Wartime service |
| Vietnam Era | 90 days | Aug 5, 1964 through May 7, 1975 |
| Post-Vietnam | 181 days | May 8, 1975 through Sep 7, 1980 |
| Gulf War Era | 90 days or 24 months | Aug 2, 1990 through present |
| Guard/Reserve | 6 years | Or 90 days active (Title 10) |
Can Surviving Spouses Qualify for VA Loans?
Yes. Certain surviving spouses have full VA loan eligibility.
Qualifying Surviving Spouses:
- Un-remarried spouse of veteran who died in service or from service-connected disability
- Un-remarried spouse of veteran who was totally disabled from service-connected disability at death
- Un-remarried spouse of servicemember missing in action or prisoner of war for 90+ days
- Spouse who remarried after age 57 and after December 16, 2003
Surviving Spouse Benefits:
- Full VA loan eligibility
- Funding fee exemption
- Same terms as veterans
How Do I Get a Certificate of Eligibility?
Your Certificate of Eligibility (COE) confirms your entitlement to VA loan benefits and establishes whether you have full or partial entitlement available. Lenders rely on this document to verify that the loan can be guaranteed by the VA.
There are three ways to obtain a COE, and the method you choose affects how quickly you can move forward in the VA loan process. Securing it early removes one of the most common early-stage bottlenecks.
Three Ways to Obtain Your COE
Method 1: Through Your Lender (Fastest)
- Most VA-approved lenders access the VA’s Web LGY system
- Can retrieve COE instantly in many cases
- No action required from borrower beyond authorization
- Works for most veterans with digital records
- Timeline: Same day (minutes)
Method 2: VA eBenefits Portal
- Log in at eBenefits.va.gov or VA.gov
- Navigate to “Apply for Certificate of Eligibility”
- Download immediately if the records are available
- Free, available 24/7
- Timeline: Same day to 5 business days
Method 3: Mail Application (VA Form 26-1880)
- Download form from VA.gov
- Attach supporting documents (DD-214 for veterans)
- Mail to VA Regional Loan Center
- Timeline: 4 to 6 weeks (use only if other methods fail)
Required Documentation by Category
| Applicant Type | Documentation Needed |
| Veterans | DD-214 (Member 4 copy) |
| Active Duty | Statement of Service from commander |
| Guard/Reserve | NGB Form 22, point statements |
| Surviving Spouse | Marriage certificate, death certificate, DD-214 |
Even if you have used VA benefits before, get a current COE. It shows your remaining entitlement and confirms your eligibility status has not changed.
Starting the VA loan process with the right guidance makes every step easier.
Speak with McGowan’s VA loan specialists about your eligibility and options →
Can I Buy a House with Zero Down Using a VA Home Loan, and What Will My Monthly Payment Look Like?
Yes. VA loans are one of only two major loan programs, along with USDA, that allow eligible borrowers to finance 100 percent of the purchase price.
Zero down, however, does not mean zero cost. Your monthly payment will still reflect principal, interest, property taxes, homeowners’ insurance, and the VA funding fee if financed. Understanding the full payment structure helps determine whether zero-down financing aligns with your budget.
What Zero Down Means
- Purchase price equals loan amount (before funding fee)
- No down payment required at closing
- Full home equity potential from day one (with appreciation)
- Maximum purchasing power for your income
Monthly Payment Example (2026 Rates)
$400,000 home purchase, 0% down, 6.5% interest rate, 30-year term:
| Payment Component | Amount |
| Principal & Interest | $2,528 |
| Property Taxes (estimate) | $417 |
| Homeowner’s Insurance | $167 |
| VA Funding Fee (if financed) | ~$87/month |
| PMI | $0 |
| Total Monthly Payment | ~$3,199 |
Conventional Comparison (Same Home)
- 5% down required: $20,000
- PMI: ~$200/month
- Higher interest rate (+0.25%): Additional ~$60/month
- Total monthly: ~$3,459 (plus $20,000 down payment)
VA Advantage: $260 per month savings plus $20,000 kept in your pocket.
Understanding your payment at different price points helps with budgeting.
Calculate your exact VA loan payment with McGowan →
How Does the VA Funding Fee Work and Can It Be Rolled into My Home Loan?
The VA funding fee is a one-time charge that helps sustain the VA loan program and reduce taxpayer costs. The amount varies based on service type, down payment amount, and prior use of VA benefits.
In most cases, the funding fee can be financed into the loan balance rather than paid out of pocket. Evaluating whether to finance it or pay it upfront affects both your monthly payment and total long-term cost.
2026 VA Funding Fee Rates
| Down Payment | First Use | Subsequent Use |
| 0% (none) | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10%+ | 1.25% | 1.25% |
Guard/Reserve Rates (First Use):
| Down Payment | Fee |
| 0% | 2.4% |
| 5% to 9.99% | 1.75% |
| 10%+ | 1.5% |
Funding Fee Example
$400,000 loan, first-time use, 0% down: $400,000 × 2.15% = $8,600 funding fee
Financing the Funding Fee
- Yes, you can roll the funding fee into your loan amount
- The loan becomes $408,600 in the above example
- Slightly higher monthly payment
- No out-of-pocket cost at closing
Who Is Exempt from the Funding Fee
- Veterans receiving VA disability compensation
- Veterans eligible for disability compensation (pending claims)
- Surviving spouses of veterans who died in service or from service-connected disability
- Active-duty Purple Heart recipients (as of 2020)
Highlight Box: Disability Exemption Value
A veteran with a 10%+ VA disability rating pays $0 funding fee. On a $400,000 loan, that represents an immediate $8,600 savings, money that stays in your pocket at closing or reduces your loan amount if you had planned to finance the fee.
What Is the Maximum VA Home Loan Amount I Can Qualify for with No Down Payment?
The maximum VA home loan amount available with no down payment depends on whether you have full entitlement or reduced entitlement. Full entitlement generally removes loan limits for qualified borrowers, while reduced entitlement may cap the amount eligible for zero-down financing.
Understanding your entitlement status helps determine how much you can borrow without making a down payment and whether additional funds would be required above certain price points.
With Full Entitlement: No Loan Limit
Since 2020, borrowers with full entitlement have no VA loan limit. You can purchase any home you qualify for with zero down payment.
Full Entitlement Defined:
- Never used the VA loan benefit before, OR
- Paid off previous VA loan AND sold the property, OR
- Had entitlement fully restored
With Reduced Entitlement: County Limits Apply
If you have a current VA loan or defaulted on a previous one, county loan limits apply to determine your zero-down maximum.
2026 VA Loan Limits (for reduced entitlement):
- Baseline: $806,500 (most counties)
- High-cost areas: Up to $1,209,750
- Limits match conforming loan limits
Qualification Factors (Regardless of Entitlement)
- Income and employment stability
- Debt-to-income ratio (typically 41% maximum)
- Credit history and score
- Residual income requirements
Can I Use My VA Home Loan Benefit More Than Once, and How Does That Affect My Entitlement?
Yes. VA loan benefits are reusable, and this is one of the most misunderstood aspects of the program.
Entitlement is restored when a VA loan is paid off, and the property is sold, and in some cases, partial entitlement may remain available even with an existing VA loan in place. Understanding how entitlement works allows you to plan future purchases, relocations, or refinances without assuming the benefit is limited to one use.
Scenarios for Reusing VA Entitlement
Scenario 1: Sell and Restore
- Sell a home purchased with a VA loan
- Pay off the VA loan balance
- Entitlement fully restored
- Purchase a new home with full VA benefits
Scenario 2: Keep and Use Remaining
- Keep current VA-financed home
- Use the remaining entitlement for the second property
- Must occupy the second home as the primary residence
- Subject to reduced entitlement limits
Scenario 3: One-Time Restoration
- Keep current VA-financed home (as rental/investment)
- Refinance into a conventional loan
- Request one-time entitlement restoration
- Use the full entitlement on the new primary residence
Entitlement Restoration Process
- Pay off existing VA loan (sale or refinance)
- Request restoration via VA Form 26-1880
- Lender verifies restoration through Web LGY
- Full entitlement available for next purchase
Important Note: The one-time restoration for converting an existing VA loan to a conventional loan is truly one-time. Use it strategically.
What Types of Properties Are Allowed with VA Home Loans and Which Are Not Eligible?
VA loans have defined property eligibility requirements centered on safety, livability, and occupancy. The most significant limitation is the primary residence requirement.
Eligible properties generally include single-family homes, approved condominiums, and certain multi-unit properties when the borrower occupies one unit. Investment properties and second homes do not qualify, which means the purchase strategy must align with VA occupancy standards.
Eligible Property Types:
| Property Type | VA Eligible? | Requirements |
| Single-family home | Yes | Must be primary residence |
| Condo | Yes | Must be VA-approved complex |
| Townhouse | Yes | Must meet VA standards |
| 2 to 4 unit property | Yes | Borrower must occupy one unit |
| Manufactured home | Yes | Permanent foundation required |
| New construction | Yes | VA-approved builder |
Ineligible Property Types:
| Property Type | Why Not Eligible |
| Investment property | Primary residence requirement |
| Vacation/second homes | Primary residence requirement |
| Co-ops | Ownership structure incompatible |
| Mobile homes (no foundation) | Must be real property |
| Houseboats | Not real property |
| Commercial properties | Residential only |
Can I Use a VA Home Loan to Buy a Duplex or Multi-Unit Property If I Live in One Unit?
Yes. VA loans allow 1 to 4 unit properties when the borrower occupies one unit as their primary residence.
Multi-Unit Benefits:
- Rental income can help qualify for a larger loan
- Build an investment portfolio while living in a property
- The same zero-down benefit applies
- No additional requirements beyond occupancy
Rental Income Qualification:
- 75% of projected rental income (from other units) can count toward qualifying income
- Requires appraisal with the rental schedule
- Existing leases strengthen qualification
Example: Duplex purchase: $500,000
- Unit 1: Your residence
- Unit 2: Rents for $2,000/month
- $1,500 (75% of rent) added to qualifying income
- Potential additional purchasing power: $250,000+
How Do VA Home Loan Interest Rates Compare to Conventional Mortgage Rates for Buyers?
VA interest rates are typically 0.25 percent to 0.50 percent lower than comparable conventional rates for the same borrower profile. This difference reflects the VA guaranty, which reduces lender risk.
Lower rates can translate into meaningful monthly savings and reduced lifetime interest costs. Comparing rate structures directly helps quantify the financial advantage rather than assuming one program is automatically better.
Why VA Rates Are Lower
- Government guarantee reduces lender risk
- No default risk premium needed
- Standardized underwriting reduces costs
- High borrower quality (steady military income)
2026 Rate Comparison (Illustrative)
| Loan Type | Rate Range | On $400K Loan |
| VA Loan | 6.00% to 6.50% | $2,398 to $2,528/mo |
| Conventional (20% down) | 6.25% to 6.75% | $2,462 to $2,594/mo |
| Conventional (5% down + PMI) | 6.50% to 7.00% + PMI | $2,528 to $2,661/mo + $200 PMI |
| FHA | 6.25% to 6.75% + MIP | $2,462 to $2,594/mo + $233 MIP |
Total Cost Comparison (30-Year Term, $400K)
| Factor | VA Loan | Conventional (5% down) |
| Down payment | $0 | $20,000 |
| Funding fee/PMI upfront | $8,600 | $0 |
| Monthly payment (P&I) | $2,528 | $2,594 |
| Monthly PMI/MIP | $0 | $200 |
| 30-year total | $911,680 | $1,005,840 + $20,000 down |
VA Savings: Approximately $114,160 over the loan lifetime
Current VA rates affect your monthly payment significantly.
Check current VA rates with McGowan →
What Documents Do I Need to Get Preapproved for a VA Home Loan Quickly?
Pre-approval requires verified documentation of income, assets, and credit history. Lenders cannot issue reliable approval decisions based on estimates alone.
Gathering required documents before applying allows the lender to assess debt-to-income ratios, confirm employment stability, and calculate residual income accurately. Complete documentation at the outset often shortens the pre-approval timeline and reduces follow-up requests.
Required Documentation
Military/VA Documents:
- Certificate of Eligibility (COE), which a lender can often obtain
- DD-214 (veterans)
- Statement of Service (active duty)
- Disability rating letter (if applicable)
Income Documentation:
- Pay stubs (30 days minimum)
- W-2s (past 2 years)
- Tax returns (2 years if self-employed, commission, or variable income)
- Leave and Earnings Statement (LES) for active duty
- VA disability award letter (if applicable)
- Retirement/pension statements
Asset Documentation:
- Bank statements (all accounts, 2 months)
- Investment account statements
- Gift letters (if receiving a down payment gift)
Identity/Other:
- Government-issued photo ID
- Social Security card/verification
- Current address verification
- Divorce decree (if applicable)
Highlight Box: Fast-Track Pre-Approval
Active-duty service members have an advantage: their LES (Leave and Earnings Statement) provides income, tax, and deduction information in one document. Combined with COE retrieval through your lender’s system, VA pre-approval can happen in hours, not days.
Do VA Loans Require Mortgage Insurance?
No. VA loans do not require mortgage insurance, regardless of down payment amount.
While conventional loans require private mortgage insurance with less than 20 percent down, and FHA loans typically require mortgage insurance for the life of the loan, VA financing replaces mortgage insurance with the one-time funding fee. Eliminating monthly mortgage insurance reduces ongoing housing costs and improves long-term affordability.
Mortgage Insurance Savings
| Loan Type | Monthly MI (on $400K) | Over 30 Years |
| VA Loan | $0 | $0 |
| Conventional (5% down) | ~$200 | ~$72,000* |
| FHA (3.5% down) | ~$233 | ~$83,880 |
*Conventional PMI cancels at 20% equity; FHA MIP typically continues for the loan life
Why No Mortgage Insurance?
The VA funding fee (paid once at closing) funds the guarantee program that replaces traditional mortgage insurance. Even with the funding fee, the total cost is typically lower than alternatives.
How Does VA Loan Refinancing Work?
The VA offers two primary refinance options for existing homeowners: the Interest Rate Reduction Refinance Loan (IRRRL) and the VA cash-out refinance.
The IRRRL is designed to lower an existing VA interest rate with minimal documentation, whereas the cash-out refinance allows borrowers to access equity or refinance from a non-VA loan into a VA structure. Choosing the appropriate option depends on whether the goal is payment reduction or equity access.
Interest Rate Reduction Refinance Loan (IRRRL)
Also called “VA Streamline Refinance”:
- Refinances an existing VA loan to a lower rate
- Minimal documentation required
- No appraisal is typically required
- No income verification in most cases
- Can be completed in 2 to 3 weeks
- Funding fee: 0.5%
IRRRL Requirements:
- Must currently have a VA loan
- Must result in a lower rate or a more stable loan (ARM to fixed)
- Must have made at least 6 payments
- 210 days since first payment
VA Cash-Out Refinance
- Refinances any loan type (conventional, FHA, or VA) into a VA loan
- Access up to 100% of home equity
- Full income/credit qualification required
- Appraisal required
- Funding fee: 2.15% (first use) / 3.3% (subsequent)
Cash-Out Uses:
- Pay off higher-interest debt
- Home improvements
- Education expenses
- Emergency reserves
- Convert a non-VA loan to VA terms
Understanding your refinance options helps you optimize your mortgage over time.
Learn more about VA refinance options with McGowan →
Expert Viewpoint: Maximizing Your VA Loan Benefit
VA loans represent one of the most valuable benefits earned through military service. However, many eligible borrowers either do not use the benefit or do not structure it in a way that maximizes long-term value.
Understanding entitlement, rate advantages, property rules, and refinancing flexibility allows you to use the program strategically rather than reactively. When approached with clear planning, the VA loan benefit can support both immediate homeownership goals and future financial mobility.
Strategic Recommendations
For First-Time VA Buyers:
- Get pre-approved before house hunting (establishes purchasing power)
- Do not limit yourself based on down payment concerns (0% is standard)
- Request disability rating documentation before applying (potential fee exemption)
- Consider multi-unit properties (house-hacking builds wealth faster)
For Veterans with Previous VA Loans:
- Understand your entitlement status (full vs. reduced)
- Consider a one-time restoration if keeping the rental property
- Compare IRRRL vs. Cash-Out based on current goals
- Track entitlement usage across multiple properties
For Active-Duty Planning PCS:
- VA loans support relocation flexibility
- Consider keeping the current home as a rental
- Use the remaining entitlement at the new duty station
- Plan for entitlement restoration timing
Common Mistakes to Avoid
- Assuming you need perfect credit (you do not)
- Thinking VA is only for first-time buyers (it is reusable)
- Paying the funding fee when exempt (verify disability status)
- Not comparing VA to conventional when 20%+ down available
Highlight Box: The McGowan Mortgages Commitment
We specialize in helping military families navigate VA loan options. Whether you are a first-time buyer, repeat VA user, or surviving spouse exploring eligibility, we provide clear guidance tailored to your service history and goals. Your benefit was earned; we help you use it wisely.
Understanding your VA loan options starts with a conversation about your service and goals.
Get expert VA loan guidance from McGowan →
Frequently Asked Questions
Who qualifies for a VA home loan?
Eligible veterans, active-duty service members, National Guard and Reserve members with qualifying service, and certain surviving spouses may qualify for VA home loans. Eligibility depends on length and character of service, and requirements vary by service period. Verification occurs through the Certificate of Eligibility, which confirms entitlement status before the loan process moves forward.
How do I get a Certificate of Eligibility?
The fastest method is through a VA-approved lender, who can often retrieve the Certificate of Eligibility instantly through the VA’s Web LGY system. Borrowers may also apply online through the VA benefits portal or submit VA Form 26-1880 by mail. Securing the COE early prevents delays during pre-approval and underwriting.
Do VA loans require a down payment?
No. VA loans allow eligible borrowers with full entitlement to finance 100 percent of the purchase price. While no down payment is required, closing costs and prepaid expenses may still apply unless negotiated or financed where permitted.
What is the VA funding fee?
The VA funding fee is a one-time charge, typically ranging from 1.25 percent to 3.3 percent of the loan amount, depending on down payment size and prior benefit use. The fee helps sustain the VA loan program and offset taxpayer costs. It may be financed into the loan balance, and veterans with qualifying service-connected disabilities are generally exempt.
Are VA loans only for first-time buyers?
No. VA loan benefits are reusable and may be used multiple times over a borrower’s lifetime. Entitlement can be restored after selling a property or refinancing out of a VA loan, allowing future purchases under the program.
What credit score is required for VA loans?
The VA does not set a minimum credit score requirement. However, most lenders establish practical minimums between 580 and 620. Approval decisions consider the full credit profile, including payment history and recent credit behavior, rather than the score alone.
Do VA loans require mortgage insurance?
No. VA loans do not require private mortgage insurance regardless of the down payment amount. Instead, the program uses the funding fee structure to reduce lender risk, which lowers ongoing monthly housing costs compared to many conventional loans with less than 20 percent down.
What are VA loan limits in 2026?
Borrowers with full entitlement generally have no VA loan limit. Those with reduced entitlement follow county loan limits, which are $806,500 in most areas and up to $1,209,750 in designated high-cost markets. The applicable limit affects how much can be financed with no down payment.
Can surviving spouses qualify for VA loans?
Yes. Unremarried surviving spouses of veterans who died in service or from a service-connected disability may qualify for VA home loans. Eligible surviving spouses are also exempt from paying the VA funding fee.
How does VA loan refinancing work?
The VA offers two primary refinance options. The Interest Rate Reduction Refinance Loan (IRRRL) allows existing VA borrowers to lower their rate with minimal documentation and typically no appraisal. The VA Cash-Out Refinance permits borrowers to access equity or convert a non-VA loan into a VA loan, subject to qualification standards.
Get Started With Your VA Home Loan at McGowan
The VA home loan benefit was earned through service, and it exists to make homeownership more accessible for those who qualify. If you are eligible, the program provides structural advantages that conventional financing simply does not offer.
Zero down payment, no monthly mortgage insurance, and consistently competitive interest rates reduce both upfront cash requirements and long-term borrowing costs. Those advantages are tied to eligibility rules, entitlement calculations, and funding fee structure, which means the details matter.
Using the benefit effectively requires more than knowing you qualify. Reviewing entitlement status, comparing payment structures, and evaluating long-term plans ensures the VA home loan is structured around your numbers and goals rather than treated as a default option.
Call +1 (816) 631-9687or contact McGowan Mortgages to discuss your VA loan options →
