# VA loan

> A VA loan is a mortgage from a private lender guaranteed by the Department of Veterans Affairs, often with no down payment or monthly mortgage insurance.

URL: https://mortgage-math-us.com/glossary/va-loan/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A VA loan** is a home loan made by a private lender and partly guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. The guaranty lets lenders offer 0% down when the price doesn’t exceed the appraised value, with no monthly mortgage insurance.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Down payment VA requires | 0% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/) | Jan 7, 2026 |
| VA guaranty on most loans | 25% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-limits/) | Aug 12, 2025 |
| Funding fee, first use, under 5% down | 2.15% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |
| VA debt-to-income guideline | 41% | [38 CFR 36.4340](https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/section-36.4340) | Oct 23, 2026 |

## The guaranty and the funding fee

Instead of mortgage insurance, the VA promises to repay the lender part of any loss — up to 25% of the loan on most loans — through your [VA entitlement](https://mortgage-math-us.com/glossary/va-entitlement/). In exchange, most borrowers pay a one-time [VA funding fee](https://mortgage-math-us.com/glossary/va-funding-fee/), which can be financed. On a first-use $350,000 loan with less than 5% down, the fee at 2.15% is $7,525. Veterans who receive VA disability compensation, and some others, are exempt.

## Who qualifies

Eligibility depends on your service history or status as a surviving spouse; the VA confirms it with a Certificate of Eligibility (COE). The lender still underwrites you: VA uses a debt-to-income guideline of 41% alongside a [residual income](https://mortgage-math-us.com/glossary/residual-income/) test, and the home must be your primary residence. The [VA loans guide](https://mortgage-math-us.com/loan-types/va-loans/) covers the fee table and entitlement in depth.

## Related terms

- [IRRRL](https://mortgage-math-us.com/glossary/irrrl/), the VA streamline refinance

## Sources

- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) — VA funding fee, first use, less than 5% down (Apr 7, 2023)
- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/) — VA purchase loan down payment (price at or below appraised value) (Jan 7, 2026)
- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-limits/) — VA guaranty on loans above $144,000 (share of the loan amount) (Aug 12, 2025)
- [38 CFR 36.4340](https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/section-36.4340) — VA debt-to-income guideline (higher ratios need documented compensating factors) (Oct 23, 2026)
- [CFPB: What is a VA loan?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-va-loan-en-113/)
- [VA: Purchase loan](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/)

_General information, not financial advice._