For those who’ve completed military service—or are actively serving—homeownership may feel like a big step. Fortunately, the U.S. Department of Veterans Affairs (VA) Home Loan Guaranty program makes this dream more attainable by offering unique benefits designed to honor your service.
How the VA Loan Program Works
The process begins by securing financing through a bank, credit union, or mortgage company. The VA then works with your lender to guarantee the loan, reducing the lender’s risk. This guarantee opens the door to more affordable terms that set VA loans apart from conventional financing.
VA Loan Benefits Compared to Conventional Loans
Unlike most conventional home loans, VA-backed loans offer:
- No Down Payment: As long as the home price is at or below the appraised value, no down payment is required.
- Lower Interest Rates: VA loans often come with more competitive rates.
- No PMI or MIP: Unlike other low-down-payment loans, VA loans do not require monthly private mortgage insurance or mortgage insurance premiums.
- Funding Fee: VA loans include a one-time funding fee ranging from 1.25%–3.3% of the loan, which helps sustain the program for future veterans.
How Much Can You Borrow?
Since 2020, VA loans have had no federally mandated loan limit. However, lenders may apply the same limits used for conventional loans. In 2025, the conventional loan limit is $806,500.
Who Is Eligible?
You may qualify for a VA home loan if you are:
- An active-duty service member with at least 90 continuous days of service.
- A veteran who served at least 24 continuous months (or other specific requirements).
- A National Guard or Reserve member who meets minimum service requirements.
- An unremarried surviving spouse of a qualifying veteran.
For full details, visit the VA Home Loan Eligibility page.
What Is a Certificate of Eligibility (COE)?
The COE is proof to your lender that you qualify for the VA loan benefit. You can apply through your lender, online, or by mailing in VA Form 26-1880 (Request for Certificate of Eligibility).
VA Loans Are Assumable—What Does That Mean?
If you sell your home, the buyer may be able to “assume” your VA loan—taking over the existing payments. This can be an attractive feature for buyers, especially if interest rates are higher than when you purchased. However, the buyer will typically need to cover your equity in the home.
Why Work with a REALTOR®?
Buying a home is one of life’s most important financial decisions. Veterans and active-duty service members often have unique needs, and REALTORS®—members of the National Association of REALTORS®—are specially trained to guide you through the process.
Many REALTORS® earn NAR’s Military Relocation Professional (MRP) certification, giving them deeper expertise in assisting VA buyers. Additionally, the VA Home Loan Program Reform Act, signed into law this year, ensures veterans can pay their agents directly—helping VA buyers stay competitive in today’s housing market.
Your REALTOR® and attorney can also help navigate state-specific laws and ensure your best interests are protected. REALTORS® are bound by NAR’s Code of Ethics to act in your favor throughout the transaction.
Ready to explore your options? Connect with a REALTOR® who understands the VA Home Loan process and can help you achieve your dream of homeownership.
For more information and resources, visit facts.realtor.
