What we verified in “VA home loans: who qualifies, the COE and what it costs”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to VA, you get a VA-backed purchase loan from a private lender, such as a bank or mortgage company, not from VA; VA guarantees part of the loan against loss, which lets the lender give you better terms, such as no down payment; lenders offer different interest rates and fees, so it pays to shop around; many charge Veterans a 1% flat fee (the loan origination fee), may charge other fees, and in some cases those fees are negotiable.

   Sources 1 · Buying a home with a VA-backed loan (updated January 7, 2026): 'You'll go through a private lender, like a bank or mortgage company, to get this loan'; 'We'll guarantee part of the loan against loss, which will allow your lender to give you better loan terms, like the option to have no down payment'; 'not through us'; 'Lenders offer different loan interest rates and fees, so shop around'; 'Many lenders charge Veterans using VA-backed home loans a 1% flat fee'; 'Lenders may also charge you additional fees'; 'In some cases, lender fees are negotiable' · Checked October 17, 2026

2. According to VA, the loan guaranty protects the lender from losing money if you default: VA promises to pay the lender back a percentage of the loan; in most cases, that guaranty lets you buy a home with no down payment.

   Sources 2 · VA home loan entitlement and limits (updated August 12, 2025): 'A VA loan guaranty protects your lender from losing money if you default on your loan'; 'In most cases, this guaranty allows you to buy a home with no down payment'; 'we'll pay back your lender a percentage of your loan' · Checked October 17, 2026

3. According to VA, you may be eligible for a VA-backed purchase loan if all three are true: you qualify for a Certificate of Eligibility (COE); you meet VA's and your lender's standards for credit, income and any other requirements; and you will live in the home you buy with the loan.

   Sources 3 · Purchase loan (updated January 7, 2026): 'All of these must be true'; 'You qualify for a VA-backed home loan Certificate of Eligibility (COE)'; 'standards for credit, income, and any other requirements'; 'You will live in the home you're buying with the loan' · Checked October 17, 2026

4. According to VA, a VA-backed purchase loan often offers: no down payment as long as the sales price is not higher than the appraised value; no private mortgage insurance (PMI) or mortgage insurance premiums (MIP); fewer closing costs; and no penalty for paying the loan off early. It can be used to buy a single-family home of up to 4 units, a condo in a VA-approved project, or a manufactured home or lot, to build, or to improve a home, and the benefit can be used again.

   Sources 3 · Purchase loan: 'No down payment as long as the sales price isn't higher than the home's appraised value'; 'No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)'; 'Fewer closing costs'; 'No penalty fee if you pay the loan off early'; 'Buy a single-family home, up to 4 units'; 'Buy a condo in a VA-approved project'; 'Buy a manufactured home or lot'; 'Build a new home'; 'Use your VA loan benefit again if you sell or refinance a home you bought with a VA-backed home loan' · Checked October 17, 2026

5. According to VA, a COE requires minimum active-duty service: for service members, at least 90 continuous days; for Veterans, it depends on when you served (from August 2, 1990, to the present: at least 24 continuous months, or the full period of at least 90 days for which you were called, or less than 90 days if you were discharged for a service-connected disability); for the National Guard or Reserve, at least 90 days of non-training active-duty service, or 6 creditable years. You must also meet VA's and the lender's credit, income and occupancy requirements.

   Sources 4 · Eligibility for VA home loan programs (updated September 22, 2026): 'If you've served for at least 90 continuous days'; 'The minimum active-duty service requirements depend on when you served'; 'Between August 2, 1990, and the present'; 'At least 24 continuous months'; 'The full period (at least 90 days) for which you were called or ordered to active duty'; 'Less than 90 days if you were discharged for a service-connected disability'; 'At least 90 days of non-training active-duty Title 10 service'; '6 creditable years in the National Guard'; '6 creditable years in the Selected Reserve'; 'you must meet credit, income, and occupancy requirements from both us and your lender' · Checked October 17, 2026

6. According to VA, if you do not meet the minimum service, you may still get a COE if you were discharged under certain exceptions, such as hardship, an involuntary reduction in force, certain medical conditions or a service-connected disability; with an other than honorable discharge you may not be eligible, but you can apply and VA reviews your records, or you can apply for a discharge upgrade.

   Sources 4 · Eligibility for VA home loan programs: 'You may still be able to get a COE if you were discharged under 1 of the qualifying exceptions'; 'Hardship'; 'Involuntary reduction in force'; 'Certain medical conditions'; 'A service-connected disability'; 'you may not be eligible for VA benefits'; 'You can apply, and we'll review your service records to determine if you qualify for a COE'; 'Apply for a discharge upgrade' · Checked October 17, 2026

7. According to VA, you can restore entitlement you used to buy another home if you sold the home and paid that loan in full, if a qualified Veteran-transferee assumes your loan and substitutes their entitlement, or if you repaid the loan in full without selling the home (that last one only once); even without restoring it, you may still have remaining entitlement to buy or refinance another home.

   Sources 4 · Eligibility for VA home loan programs, 'Can I reuse my COE?': 'You've sold the home you bought with the prior loan and have paid that loan in full'; 'A qualified Veteran-transferee agrees to assume your loan and substitute their entitlement'; 'You've repaid your prior loan in full, but haven't sold the home you bought with that loan (you can only do this once)'; 'you may still have remaining entitlement to buy or refinance another home' · Checked October 17, 2026

8. According to VA, as the spouse of a Veteran you may be able to get a COE if the Veteran is missing in action or a prisoner of war; if the Veteran died in service or from a service-connected disability and you did not remarry (special rules apply if you remarried at 57 or older); or, in certain situations, if the Veteran had been totally disabled and then died. You also need to meet the lender's credit and income requirements. If you receive DIC, you use VA Form 26-1817.

   Sources 5 · Home loans for surviving spouses (updated September 22, 2026): 'The Veteran is missing in action'; 'The Veteran is a prisoner of war (POW)'; 'The Veteran died while in service or from a service-connected disability and you didn't remarry'; 'you didn't remarry before you were 57 years old'; 'The Veteran had been totally disabled and then died'; 'you'll also need to meet your lender's credit and income requirements'; 'Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817)' · Checked October 17, 2026

9. According to VA, the Certificate of Eligibility (COE) is the first step toward a VA-backed loan and confirms for your lender that you qualify for the benefit; Veterans need a copy of their discharge or separation papers (DD214); active-duty service members need a statement of service signed by their commander, adjutant or personnel officer; you can request it online, through your lender (using an online system called Web LGY) or by mail with VA Form 26-1880, which may take longer; VA reviews the request and tells you its decision.

   Sources 6 · How to request a VA home loan Certificate of Eligibility (COE) (updated September 22, 2026): 'This is the first step in getting a VA-backed home loan'; 'It confirms for your lender that you qualify for the VA home loan benefit'; 'you'll need a copy of your discharge or separation papers (DD214)'; 'you'll need a statement of service—signed by your commander, adjutant, or personnel officer'; 'Option 1: Online'; 'Your lender may be able to use an online system (called Web LGY) to get your COE'; 'VA Form 26-1880'; 'mail requests may take longer'; 'We'll review your request and tell you our decision' · Checked October 17, 2026

10. VA's Spanish-language COE page says that if you call VA with questions about the loan, you can ask the agent to add a Spanish-speaking interpreter to the call; and that the lender orders a VA appraisal, which is not a home inspection or a guarantee of value.

    Sources 7 · Solicitud de un Certificado de elegibilidad (COE) (Spanish page, updated October 1, 2026): 'Dígale al agente que desea que un intérprete que hable español se una a la llamada'; 'El prestamista solicitará una valuación de VA'; 'No constituye una inspección de la vivienda ni una garantía de valor' · Checked October 17, 2026

11. According to VA, the funding fee is a one-time payment the Veteran, service member or survivor makes on a VA loan; it helps lower the program's cost to taxpayers because the program does not require down payments or monthly mortgage insurance; you pay it when the loan closes, and you can include it in the loan and pay it over time, or pay it in full at closing.

    Sources 8 · VA funding fee and loan closing costs (updated October 5, 2026): 'The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays'; 'helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn't require down payments or monthly mortgage insurance'; 'You'll pay this fee when you close'; 'Include the funding fee in your loan and pay it off over time'; 'Pay the full fee all at once at closing' · Checked October 17, 2026

12. According to VA, you do not pay the funding fee if you receive VA compensation for a service-connected disability; if you are eligible for that compensation but receive retirement or active-duty pay instead; if you receive DIC as the surviving spouse of a Veteran; if you are a service member who received a proposed or memorandum rating before closing saying you are eligible for compensation based on a pre-discharge claim; or if you are on active duty and, on or before closing, provide evidence that you received a Purple Heart. If you are later awarded compensation effective before your closing date, you may get the fee refunded.

    Sources 8 · VA funding fee and loan closing costs: 'You're receiving VA compensation for a service-connected disability'; 'but you're receiving retirement or active-duty pay instead'; 'You're receiving Dependency and Indemnity Compensation (D.I.C.) as the surviving spouse of a Veteran'; 'a proposed or memorandum rating before the loan closing date'; 'you provide evidence that you received a Purple Heart'; 'You may be eligible for a refund of the VA funding fee if you're later awarded VA compensation for a service-connected disability'; 'must be retroactive to before the date of your loan closing' · Checked October 17, 2026

13. According to VA, the funding fee is a percentage of the total loan amount, not the purchase price; it depends on the type and amount of the loan and, for some loans, on whether this is your first or a later use of the benefit and on your down payment; VA publishes the rate charts on its page and says to talk to your lender about any costs added to your loan amount.

    Sources 8 · VA funding fee and loan closing costs: 'We'll calculate your funding fee as a percentage of your total loan amount'; 'The type of loan you get'; 'The total amount of your loan'; 'Whether it's your first time, or a subsequent time, using a VA-backed or VA direct home loan'; 'Your down payment amount'; 'The funding fee applies only to the loan amount, not the purchase price of the home'; 'VA funding fee rate charts'; 'Be sure to talk to your lender about any loan costs that may be added to your loan amount' · Checked October 17, 2026

14. According to VA's chart effective April 7, 2023, for purchase and construction loans to Veterans, service members and National Guard and Reserve members, the fee is 2.15% on first use with less than 5% down, 1.5% with 5% or more and 1.25% with 10% or more; after first use it is 3.3% with less than 5% down, 1.5% with 5% or more and 1.25% with 10% or more.

    Sources 8 · VA funding fee rate charts, 'VA-backed purchase and construction loans': 'Effective April 7, 2023'; 'First use Less than 5% 2.15% 5% or more 1.5% 10% or more 1.25%'; 'After first use Less than 5% 3.3% 5% or more 1.5% 10% or more 1.25%' · Checked October 17, 2026

15. According to VA, your lender sets the interest rate, discount points and other closing costs, which vary from lender to lender; you and the seller can negotiate who pays costs such as the agent's commission, the origination fee, points, the VA appraisal, title insurance and recording; VA lets sellers or builders offer credits toward your closing costs but limits seller's concessions to no more than 4% of the home's reasonable value, shown on the VA Notice of Value; on a purchase loan you can finance only the funding fee, and all other fees are paid at closing; and it is important to review the Loan Estimate.

    Sources 8 · VA funding fee and loan closing costs, 'Other loan closing costs': 'Your home loan lender will determine these details of your loan'; 'These details may vary from lender to lender'; 'You (the buyer) and the seller can negotiate who will pay closing costs'; 'VA appraisal fee'; 'We allow home sellers or builders to offer credits to cover some or all of the buyer's closing costs'; 'we do limit seller's concessions to no more than 4% of your home's reasonable value'; 'VA Notice of Value'; 'you can finance only the VA funding fee into the loan amount'; 'You must pay all other fees and charges when your loan closes'; 'review the Loan Estimate your lender provided' · Checked October 17, 2026

16. Under VA's regulation (38 CFR §36.4313), you cannot be charged any fee not allowed on its list; you may pay reasonable and customary amounts for items such as the VA appraisal, recording, the credit report, insurance and title; the lender may charge a flat fee of no more than 1 percent of the loan amount in place of other origination charges; and on a purchase loan, closing costs may not be included in the loan.

    Sources 9 · 38 CFR §36.4313(a) ('No charge shall be made against, or paid by, the borrower incident to the making of a guaranteed or insured loan other than those expressly permitted'; 'may not be included in the loan'), (d)(1) ('The veteran may pay reasonable and customary amounts for any of the following items'; 'Credit report') and (d)(2) ('a flat charge not exceeding 1 percent of the amount of the loan'; 'in lieu of all other charges relating to costs of origination') · Checked October 17, 2026

17. According to VA, with full entitlement you do not have a loan limit, as long as you can afford the loan and the appraisal supports the price; even so, the lender decides how much to lend based on your credit history, income, debts and assets; VA does not require a minimum credit score, but some lenders do, so it says to contact more than one; the maximum loan is the appraised value or the purchase price, whichever is lower; and without full entitlement, most lenders require your entitlement, down payment or both to cover at least 25% of the loan.

    Sources 2 · VA home loan entitlement and limits: 'You don't have a loan limit (as long as you can afford the loan amount and the property appraisal supports the purchase price of the home)'; 'your lender will still need to approve you for a loan'; 'Your credit history'; 'Any debts you may have'; 'We don't require a minimum credit score, but some lenders do have a requirement, so be sure to contact more than one lender to compare'; 'either the appraised value of the property or the purchase price, whichever is lower'; 'Most lenders require that your entitlement, down payment, or a combination of both covers at least 25% of your total loan amount' · Checked October 17, 2026

18. Under VA's regulation (38 CFR §36.4340), lenders use two standards to judge whether your income is enough: the debt-to-income ratio, whose standard is 41 percent or less, and residual income, which measures whether you have enough left each month for living expenses after housing costs and other obligations; residual income counts every member of the household; the tables vary by region (Puerto Rico is in the South), family size and loan amount; ordinarily you must meet both, but failing one does not automatically disqualify you, and meeting both does not mean automatic approval.

    Sources 10 · 38 CFR §36.4340(c) ('debt-to-income ratio and residual income analysis'; 'Ordinarily, to qualify for a loan, the veteran must meet both standards'; 'Failure to meet one standard, however, will not automatically disqualify a veteran'; 'does not mean that the loan is automatically approved'), (d) ('The standard is 41 percent or less') and (e) ('adequate to meet living expenses after estimated monthly shelter expenses have been paid and other monthly obligations have been met'; 'All members of the household must be included'; 'Table of residual incomes by region'; 'Puerto Rico') · Checked October 17, 2026

19. Under the law (38 U.S.C. §3704(c)), for a VA purchase or construction loan you must certify that you intend to live in the home as your own; that means you live there or intend to move in personally within a reasonable time after closing; if you are on active duty and cannot live there because of your service, the requirement is met if your spouse lives or intends to live in the home and makes the certification, or if a dependent child lives there and your attorney-in-fact or the child's legal guardian certifies.

    Sources 11 · 38 U.S.C. §3704(c)(1) ('certifies in such form as the Secretary may require, that the veteran intends to occupy the property as the veteran's home'; 'to move into the property personally within a reasonable time') and (c)(2) ('is unable to occupy a property because of such status'; 'the spouse of the veteran occupies or intends to occupy the property as a home'; 'a dependent child of the veteran occupies or will occupy the property as a home') · Checked October 17, 2026

20. According to VA, the purchase contract should include the VA escape clause (or VA option clause), which lets you void the contract if the home does not appraise for the contract price; VA strongly recommends a home inspection; a VA-approved appraiser checks the minimum property requirements (MPRs) and gives an opinion of value; if the appraisal comes in low, you can request a Reconsideration of Value (ROV), renegotiate the price or pay the difference at closing; and the lender must give you a Closing Disclosure at least 3 business days before closing.

    Sources 1 · Buying a home with a VA-backed loan: 'VA escape clause'; 'This provides an option to void the contract if the property doesn't appraise for the contract price'; 'We strongly recommend that you get an inspection'; 'minimum property requirements, or MPRs'; 'Request a Reconsideration of Value (ROV)'; 'Renegotiate the sales price'; 'Pay the difference between the appraised price and the sales price'; 'Your lender must give you a Closing Disclosure at least 3 business days before closing' · Checked October 17, 2026

21. According to the CFPB, VA loans are for eligible veterans, current servicemembers and surviving spouses; they are made by private lenders and guaranteed by VA; they do not require monthly mortgage insurance premiums but usually require an upfront fee at closing; they are available with low or even zero down payments but may cost more than conventional loans if you have significant down payment funds and good credit; and they offer additional protections if you later have trouble paying.

    Sources 12 · Special loan programs: 'eligible veterans, current servicemembers, and surviving spouses'; 'The loans are made by private lenders and guaranteed by the VA'; 'Do not require monthly mortgage insurance premiums, but usually require an upfront fee at closing'; 'Are available with low or even zero down payments, but may be more expensive than conventional loans if you have significant down payment funds and good credit'; 'additional protections if you have trouble paying your mortgage later on' · Checked October 17, 2026

22. According to the CFPB, FHA loans are made by private lenders and insured by the FHA; they allow down payments as low as 3.5 percent and lower credit scores than most conventional loans; and mortgage insurance is required on all FHA loans.

    Sources 13 · FHA loans (modified June 30, 2025): 'The FHA doesn't lend the money directly–private lenders do'; 'Allow for down payments as low as 3.5 percent'; 'Allow lower credit scores than most conventional loans'; 'Mortgage insurance is required for all FHA loans' · Checked October 17, 2026

23. According to VA, if you are a Veteran or a Veteran's surviving spouse, VA provides counseling to avoid foreclosure even if your loan is not VA-guaranteed; if your VA-guaranteed loan is 61 days past due, VA automatically assigns a loan technician; if you are having trouble paying, contact your servicer right away; and be careful of scams and companies trying to take advantage of you.

    Sources 14 · VA help to avoid foreclosure (updated September 23, 2026): 'we'll provide counseling—even if your loan isn't a VA-guaranteed loan'; 'If you have a VA-guaranteed loan and it's 61 days past due, we'll automatically assign a VA loan technician to review your loan'; 'contact your loan servicer right away'; 'Be careful of potential scams'; 'Work only with trusted organizations' · Checked October 17, 2026

24. HUD-approved housing counselors give independent advice on buying a home, defaults, foreclosures and credit, often for free or at low cost.

    Sources 15 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 17, 2026