What it is: A VA-guaranteed home loan program that allows eligible veterans, active-duty service members, and surviving spouses to purchase a home with $0 down payment, no private mortgage insurance (PMI), and competitive interest rates. Governed by 38 CFR Part 36.
Key Advantages Over Conventional Loans
- No down payment required (for loans within conforming limits, and in many cases above them with full entitlement).
- No PMI. On a conventional loan, a borrower putting less than 20% down typically pays 0.5% to 1.5% of the loan amount annually in PMI. On a $400,000 home, that is $2,000 to $6,000 per year — or up to $180,000 over 30 years — that VA-eligible veterans do not pay.
- VA funding fee applies in most cases but is waived entirely for veterans receiving VA disability compensation at any rating.
- No prepayment penalty.
- Assumable loans — a future buyer can take over your VA loan terms, a significant selling advantage in a high-rate environment.
2026 VA Funding Fee Schedule (Purchase Loans)
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Entitlement: VA loan entitlement does not expire. A veteran who used their benefit in 1998 and paid off that loan has full entitlement restored and can use it again. Veterans can also have two VA loans simultaneously under certain conditions.
Adapted Housing Grants (SAH/SHA): Veterans with certain severe service-connected disabilities may qualify for the Specially Adapted Housing (SAH) grant of up to $126,526 or the Special Home Adaptation (SHA) grant of up to $25,350 (FY2026) to build, buy, or modify a home for accessibility.
