VA Home Loan Guide
Everything active duty service members and veterans need to know about the VA home loan benefit — from eligibility through closing.
1. Eligibility
VA loan eligibility is based on your length and character of military service. Here are the most common qualifying criteria:
You must also have suitable credit, sufficient income, and intend to occupy the property as your primary residence. The VA itself sets no minimum credit score, though most lenders require 580–620.
2. Certificate of Eligibility (COE)
The COE is the official document that proves to lenders you meet VA service requirements. You don't need it to start shopping — but you need it before closing.
Most VA lenders, including Mable, can pull your COE electronically through the VA's ACE (Automated Certificate of Eligibility) system — which means you often receive it within seconds of applying. Alternatively, you can request it yourself at va.gov/housing-assistance or by mailing VA Form 26-1880.
💡 If your COE shows a remaining entitlement amount (not "full entitlement"), you may still qualify — but the loan structure will differ. Talk to a VA specialist about bonus/second-tier entitlement.
3. VA Entitlement
Entitlement is the dollar amount the VA guarantees to lenders on your behalf. It exists in two tiers:
Basic Entitlement
$36,000 — used for loans up to $144,000. Rarely applies in today's market.
Bonus (Second-Tier) Entitlement
Covers the gap on higher-priced loans. Most veterans today use full entitlement with no county loan limit.
Veterans who have paid off a previous VA loan or sold the home have their full entitlement restored. Veterans who still have an active VA loan may be able to use remaining entitlement to purchase a second property — a process called "dual entitlement."
4. VA Funding Fee
The funding fee is a one-time charge that keeps the VA loan program self-sustaining without taxpayer cost. It's typically rolled into the loan amount — so you pay no money out of pocket. Rates depend on your down payment and whether this is your first or subsequent use of the benefit.
Veterans receiving VA disability compensation at any rating are exempt from the funding fee entirely. Purple Heart recipients and surviving spouses are also exempt. Confirm your exemption status when applying.
5. VA Appraisal & Minimum Property Requirements
Every VA purchase requires a VA appraisal by a VA-assigned appraiser. The appraiser establishes market value AND checks that the property meets the VA's Minimum Property Requirements (MPRs) — a baseline for safety, habitability, and structural soundness.
MPR failures don't automatically kill deals — sellers can make repairs, or the buyer can request a Notice of Value (NOV) reconsideration. Your VA agent will know which property types have higher MPR risk before you make an offer.
Key MPR checklist items:
A VA appraisal is not a home inspection. Always order a separate inspection — the appraisal will not catch every defect.
6. VA vs FHA vs Conventional
For qualified veterans, VA financing almost always wins on total cost — the only scenario where it loses is when you have 20%+ down and want to avoid the funding fee.
| Feature | VA | FHA | Conventional |
|---|---|---|---|
| Min. down payment | 0% | 3.5% | 3–20% |
| PMI / MIP | None | MIP for life of loan | Required until 20% equity |
| Min. credit score (lender) | 580–620 | 580+ | 620–660+ |
| Funding / upfront fee | 0–3.3% (often waived) | 1.75% upfront MIP | None |
| Loan limits | None (full entitlement) | $524,225–$1.2M (2025) | Up to $806,500 (conforming) |
| Property condition | Must meet VA MPRs | Must meet FHA MPRs | Market standard |
| Multiple uses | Yes — reusable benefit | Yes | Yes |
| Avg. rate vs conventional | 0.25–0.5% lower | Comparable | Baseline |
7. The VA Purchase Process
A VA purchase typically closes in 30–45 days. Here's what the process looks like:
Obtain your Certificate of Eligibility (COE)
Your COE confirms to lenders that you qualify for VA financing. Get it instantly online at VA.gov, through your lender's portal (most can pull it directly), or by mail using VA Form 26-1880.
Get VA pre-approved
A VA pre-approval differs from a standard pre-qual. Your lender verifies income, assets, and credit, then issues a pre-approval letter — which sellers treat as near-certain financing. Mable's pre-approval takes under 3 minutes with no hard credit pull.
Search and make an offer
With pre-approval in hand, your agent can move quickly on homes that meet VA Minimum Property Requirements (MPRs). Your VA agent will know which properties are likely to pass appraisal and flag potential issues before you write the offer.
VA appraisal
The VA assigns an independent appraiser who establishes the home's value and checks MPR compliance. The appraisal isn't a substitute for a home inspection — always get both. The VA appraisal typically takes 7–14 days.
Underwriting
Your lender's underwriters review the full loan file — your credit, income, assets, COE, and the appraisal report. VA underwriting has no minimum credit score set by VA (though most lenders impose a floor of 580–620).
Closing
VA loans limit what fees lenders can charge you. Sellers can pay all VA-allowable closing costs. Bring a cashier's check for any agreed-upon down payment and you're done — typically 30–45 days from ratified contract to keys.
Ready to get started?
Talk to a VA loan specialist or run your numbers in the calculator.