HOUSINGVA program
VA Purchase Home Loan
VA-backed home loan with no down payment as long as the sales price is not above the home's appraised value, no private mortgage insurance, and competitive interest rates for purchasing a primary residence. You may need to pay a one-time VA funding fee.
Available with qualifying length and character of service
Step-by-step guide
What VA looks for: your COE
- Service that meets VA's minimum rulesServing now: 90 continuous days. Veterans with service from August 2, 1990, on: 24 continuous months, the full period you were called to active duty (at least 90 days), or less if discharged for a service-connected disability. Some early discharges, such as for hardship or a reduction in force, meet the rule at 90 days. Earlier service, the National Guard, and the Reserve have their own rules on VA.gov.
- A character of discharge VA acceptsWith an other than honorable, bad conduct, or dishonorable discharge, VA reviews your service records before it decides on a COE. The two routes VA names are a discharge upgrade and a VA character of discharge review.
- For a surviving spouse: DIC, or a missing spouseFor a surviving spouse, VA looks for certain types of DIC, or a service member spouse who is missing in action or a prisoner of war. With DIC, the request goes on VA Form 26-1817.
Source: VA.gov: VA home loan service requirements (opens in new tab); VA Form 26-1880 (opens in new tab); VA.gov: how to request a VA home loan COE (opens in new tab); VA Form 26-1817 (opens in new tab)
Which step are you on?
- Get your COE
The COE is the certificate VA issues for the home loan benefit, and requesting it is the first step. It tells your lender that you have the benefit and how much of it is available to use. You can request it online, through your lender, or by mail on VA Form 26-1880.
Source: VA.gov: how to request a VA home loan COE (opens in new tab); VA.gov: VA home loan service requirements (opens in new tab); VA.gov: VA home loan limits (opens in new tab); VA Form 26-1880 (opens in new tab); VA Form 26-1817 (opens in new tab)
- The loan: lender, appraisal, and closing
VA does not make this loan. A private bank, mortgage company, or credit union makes it, and VA stands behind part of it. Lenders follow VA standards and may add their own. You also certify that you plan to live in the home.
- Credit and income that meet VA and lender standardsVA's income standards look at how much of your monthly income goes to the house payment and debts, and how much is left for living costs. VA sets no minimum credit score, but some lenders do.
- A price the appraisal supportsThe loan cannot be more than the value a VA appraisal sets, or the price if that is lower. If the price is above the value and you still buy, you pay the difference in cash from your own funds.
Source: VA.gov: VA home loan types (opens in new tab); VA.gov: VA-backed purchase loan (opens in new tab); VA.gov: buying a home with a VA-backed loan (opens in new tab); 38 CFR 36.4303(g) (opens in new tab); 38 CFR 36.4340 (opens in new tab); VA.gov: VA home loan limits (opens in new tab); 38 CFR 36.4339(a) (opens in new tab)
- The VA funding fee
A one-time fee paid at closing, in cash or added to the loan. It is a percentage of the loan amount. On VA's chart effective April 7, 2023, a first-use purchase loan pays 2.15% with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. After first use, the rate with less than 5% down is 3.3%, and the other two stay the same.
- Whether an exemption appliesNo fee for a veteran who receives VA compensation for a service-connected disability, or who would but gets retirement or active-duty pay instead. Also exempt: a surviving spouse receiving DIC, a service member with a pre-discharge proposed or memorandum rating issued before closing, and an active-duty Purple Heart recipient who shows proof by closing.
- First use or later use, and your down paymentThe fee depends on the loan type, the loan amount, whether you used a VA home loan before, and your down payment. A past VA loan used only for a manufactured home still counts as first use.
Source: VA.gov: VA funding fee and closing costs (opens in new tab); VA.gov: VA-backed purchase loan (opens in new tab); 38 CFR 36.4313(e)(5) (opens in new tab); VA Form 26-1880 (opens in new tab)
- Using the benefit again
The home loan benefit can be used more than once. VA can restore the part a past loan used, or a lender can work with the part that remains.
- A past VA loan paid in full, to restore the benefitVA can restore the benefit when you sell the home and pay off the loan, or when a veteran buyer takes over your loan and uses their own benefit in its place. If you pay off the loan and keep the home, VA can restore it one time only.
- Or the part of the benefit that remainsWith your full benefit, there is no VA loan limit; the lender decides how much you can borrow. If a past loan still uses part of the benefit, the county loan limit sets how much of the new loan VA backs, and a lender may ask for a down payment.
Source: VA.gov: VA home loan service requirements (opens in new tab); VA.gov: VA home loan limits (opens in new tab); 38 CFR 36.4302(j) (opens in new tab); VA Form 26-1880 (opens in new tab)
What to gather, and what it shows VA
| Document | What it shows | How VA gets it | Have it? |
|---|---|---|---|
| Separation papers (DD214) The record of your service dates, branch, and character of discharge. | Your service dates and discharge | VA asks veterans for a copy with the COE request, though VA can often confirm service from its own records. For your own copy, use eVetRecs or SF180. | Yes |
| Statement of service A letter signed by your commander, adjutant, or personnel officer showing when you entered duty and any lost time. Guard and Reserve members still serving also show creditable years. | Your current service | Your unit provides it, and it goes with the COE request. Discharged Guard or Reserve members who were not activated send NGB Form 22 and 23, or a retirement points statement, instead. | |
| Request for a COE (VA Form 26-1880) The VA form for a COE by mail, and for asking VA to restore a benefit a past loan used. | Your service and any past VA loans | Mail it to the regional loan center address on the last page of the form. Requests online or through your lender need no paper form. | |
| Surviving spouse request (VA Form 26-1817) The VA form a surviving spouse who receives DIC sends to request a COE. | Your surviving spouse status | Send it to VA with the veteran's DD214 if you have it. Without DIC, VA asks instead for VA Form 21P-534EZ, your marriage license, and the death certificate. | |
| Your COE The certificate VA issues for the home loan benefit. A table on it lists any past VA loans and how much of the benefit each still uses. | How much of the benefit is available | VA issues it after you request it online, by mail, or through your lender. Show it to your lender. | Yes |
| Income records the lender asks for Records of your income, such as recent pay stubs, W-2 forms, and federal tax returns. Active-duty borrowers give a Leave and Earnings Statement, and self-employed borrowers give 2 years of signed tax returns. | Your income | They go to the lender, not to VA or BeneVets. The lender verifies your employment itself and may ask for other records. | Yes |
| Bank and account statements Statements for savings, retirement, and investment accounts. | Your savings and assets | The lender weighs your assets and verifies your deposits. Statements go to the lender, not to VA or BeneVets. | Yes |
| Credit records the lender asks for Papers about your credit history that the lender asks for, such as bankruptcy papers or a note about a debt it finds. | How you have paid your debts | The lender pulls your credit report and must ask you about any large debt on it that was not on your application. Papers go to the lender, not to VA or BeneVets. | |
| Purchase agreement with the VA option clause The signed sales contract for the home. | The price, and your right to cancel if the value is lower | Your real estate agent helps prepare it. When you sign before VA's value is known, VA requires a clause that lets you cancel without losing your earnest money if the price is above that value. | Yes |
| VA benefit summary letter The VA letter that shows the compensation VA pays you for a service-connected disability. | That you receive VA compensation | Download it on VA.gov, where VA offers it as proof of your benefit status. It goes to the lender if the lender asks, not to BeneVets. | Yes |
| Proof a past VA loan is paid off A paid-in-full statement from the former lender, a satisfaction of mortgage from the county, or the settlement statement from selling or refinancing the home. | That the past loan is paid in full | VA usually learns when a loan is paid off. In some cases the request needs one of these; send it with your COE request on VA Form 26-1880. | Yes |
Most papers go to your lender; the COE request goes to VA. BeneVets does not ask for copies of them.
Steps, in order
- Gather your proof of service
Veterans need a copy of the DD214. Service members, and Guard or Reserve members still serving who have not been activated, need a statement of service from the unit. VA can often confirm service from its own records.
Source: VA.gov: how to request a VA home loan COE (opens in new tab); VA Form 26-1880 (opens in new tab); VA.gov: request your military service records (opens in new tab)
- Check any past VA loan
If you used a VA home loan before, your COE shows how much of the benefit it still uses. If you sold that home and paid off the loan, ask for restoration in your COE request. If you still own it, ask about the one-time restoration or the benefit that remains.
Source: VA.gov: VA home loan service requirements (opens in new tab); VA.gov: VA home loan limits (opens in new tab); VA Form 26-1880 (opens in new tab); 38 CFR 36.4302(j) (opens in new tab)
- Request your COE
Request it online on VA.gov, ask your lender whether it can get it through VA's online system, or mail VA Form 26-1880 to your regional loan center. The BeneVets fill flow can prefill identity, contact, and service fields; past VA loans are completed on VA's form.
Source: VA.gov: how to request a VA home loan COE (opens in new tab); VA Form 26-1880 (opens in new tab)
- Get free help with the COE request
Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. VA home loan representatives also answer questions at 877-827-3702 (TTY: 711), Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.
Source: VA.gov: accredited representatives (opens in new tab); 38 CFR 14.627(h) (opens in new tab); VA Home Loans: contact us (opens in new tab); VA.gov: VA home loan service requirements (opens in new tab)
- Look at your finances
Go over your credit, income, debts, and monthly budget, and decide how much you want to spend, closing costs included. VA sets no minimum credit score, but some lenders do.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: VA home loan limits (opens in new tab)
- Check your funding fee
Find your rate on VA's funding fee chart, or check whether an exemption applies, such as receiving VA compensation. You can pay the fee at closing or add it to the loan.
Source: VA.gov: VA funding fee and closing costs (opens in new tab); 38 CFR 36.4313(e)(5) (opens in new tab)
- Choose a lender
Go to a private bank, mortgage company, or credit union; VA does not lend on this loan. Rates and fees differ between lenders, so compare several. If you do not know what a fee is for, ask the lender.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab)
- Give the lender what it asks for
Give the lender your COE and the income, asset, and credit records it asks for. These go to the lender, not to VA or BeneVets.
Source: 38 CFR 36.4340 (opens in new tab); VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: VA home loan limits (opens in new tab)
- Sign a purchase agreement
Work with your real estate agent on the purchase agreement. Include the VA option clause, which lets you cancel without losing your earnest money if the price is above VA's appraised value.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); 38 CFR 36.4303(k) (opens in new tab)
- Get an inspection and the VA appraisal
VA strongly recommends a home inspection before you buy. The lender orders the VA appraisal, which checks minimum property requirements and gives an opinion of value. An appraisal is not an inspection.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: how to request a VA home loan COE (opens in new tab)
- If the appraisal comes in low
You can ask the lender for a reconsideration of value, backed by sales data from your agent. You can also renegotiate the price, or pay the difference in cash at closing.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); 38 CFR 36.4339(a) (opens in new tab)
- Read the Closing Disclosure
Your lender must give you a Closing Disclosure at least 3 business days before closing. It shows the loan terms, fees, closing costs, and estimated monthly payment.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab)
- Close on the home
Closing may be at a title company, escrow office, or attorney's office. Read every document before you sign. Only the funding fee can be added to the loan; other costs are paid at closing.
Source: VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab); 38 CFR 36.4313(a) (opens in new tab)
- Ask about a funding fee refund if it applies
If VA later awards compensation with an effective date before your closing, call your VA regional loan center at 877-827-3702 about a refund of the funding fee.
Source: VA.gov: VA funding fee and closing costs (opens in new tab)
Good to know
You go through a private bank, mortgage company, or credit union, not VA. VA stands behind part of the loan, so the lender takes on less risk. The lender sets the interest rate, discount points, and other closing costs, and these vary from lender to lender.
Source: VA.gov: VA home loan types (opens in new tab); VA.gov: buying a home with a VA-backed loan (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab)
VA does not require a down payment when the price is not above the appraised value. A lender may still ask for one, such as when part of your benefit is in use. There is no private mortgage insurance, and no penalty for paying the loan off early.
Source: VA.gov: VA-backed purchase loan (opens in new tab); VA.gov: VA home loan limits (opens in new tab); VA.gov: VA home loan types (opens in new tab)
A veteran who receives VA compensation for a service-connected disability pays no funding fee. If VA later awards compensation with an effective date before your loan closed, you can ask your VA regional loan center about a refund. A proposed or memorandum rating issued after closing does not lead to a refund.
Source: 38 CFR 36.4313(e)(5) (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab); VA Form 26-1880 (opens in new tab)
Paying off a VA loan while you keep the home lets VA restore your benefit one time only. After that, you must sell all the homes before VA can restore the benefit again.
Source: 38 CFR 36.4302(j) (opens in new tab); VA.gov: VA home loan service requirements (opens in new tab); VA Form 26-1880 (opens in new tab)
On a purchase loan, only the funding fee can be added to the loan; other fees and charges are paid at closing. You and the seller can negotiate who pays closing costs. VA does not limit seller credits for closing costs, but limits seller concessions, such as paying your funding fee or debts, to 4% of the reasonable value.
Source: 38 CFR 36.4313(a) (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab)
BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you
Sources checked September 23, 2026: 38 CFR 14.627(h) (opens in new tab), 38 CFR 36.4302(j) (opens in new tab), 38 CFR 36.4303(g) (opens in new tab), 38 CFR 36.4303(k) (opens in new tab), 38 CFR 36.4313(a) (opens in new tab), 38 CFR 36.4313(e)(5) (opens in new tab), 38 CFR 36.4339(a) (opens in new tab), 38 CFR 36.4340 (opens in new tab), VA.gov: VA home loan service requirements (opens in new tab), VA.gov: how to request a VA home loan COE (opens in new tab), VA.gov: VA funding fee and closing costs (opens in new tab), VA.gov: VA home loan types (opens in new tab), VA.gov: VA-backed purchase loan (opens in new tab), VA.gov: cash-out refinance loan (opens in new tab), VA.gov: VA home loan limits (opens in new tab), VA.gov: buying a home with a VA-backed loan (opens in new tab), VA.gov: download VA benefit letters (opens in new tab), VA.gov: request your military service records (opens in new tab), VA.gov: accredited representatives (opens in new tab), VA Home Loans: contact us (opens in new tab), VA Form 26-1880 (opens in new tab), VA Form 26-1817 (opens in new tab), Standard Form 180 (SF180) (opens in new tab)