VA loans typically don't require a down payment, but you still need decent credit and sufficient income to get approved.
Updated Dec 12, 2023 · 3 min read Written by Hal M. Bundrick, CFP® Senior Writer Hal M. Bundrick, CFP®
Senior Writer | Personal finance, financial planning, investing
Hal M. Bundrick is a former NerdWallet personal finance writer. He is a certified financial planner and former financial consultant and senior investment specialist for Wall Street firms. Hal advised families, business owners, nonprofits and trusts, and managed group employee retirement plans.
Reviewed by Michelle Blackford Michelle Blackford
Michelle Blackford spent 30 years working in the mortgage and banking industries, starting her career as a part-time bank teller and working her way up to becoming a mortgage loan processor and underwriter. She has worked with conventional and government-backed mortgages. Michelle currently works in quality assurance for Innovation Refunds, a company that provides tax assistance to small businesses.
At NerdWallet, our content goes through a rigorous editorial review process. We have such confidence in our accurate and useful content that we let outside experts inspect our work.
Lead Assigning Editor Beth BuczynskiBeth Buczynski is a lead assigning editor on the international expansion team at NerdWallet. Beth works with writers and editors to bring financial clarity to readers across Canada's 10 provinces and three territories. Previously, Beth spent four years covering mortgages and homeownership for NerdWallet, first as a writer and later as an editor. As a writer, Beth's work was featured by The Associated Press, The Washington Post and Money magazine, among others. Beth holds a master’s degree in public communication from Colorado State University.
Fact Checked Co-written by Barbara Marquand Senior Writer Barbara MarquandBarbara Marquand is a former NerdWallet writer covering mortgages, homebuying and homeownership, insurance and investing. Previously, she covered personal finance for QuinStreet and wrote for national consumer and trade publications on topics including business, careers and parenting. Her work has appeared in MarketWatch, MSN Money, The New York Times and The Washington Post.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
VA loans help thousands of military service members and veterans buy homes each year. Here's a look at who can apply and the requirements to qualify for a VA loan.
Backed by the U.S. Department of Veterans Affairs, VA loans are a benefit for active-duty and veteran service members and some surviving spouses. You're eligible to apply for a VA loan if:
You are on active duty and have served 90 continuous days.You are a veteran who meets length-of-service requirements, which generally are 90 days in wartime and 181 days in peacetime.
You completed 90 days of active-duty service or six creditable years in the Selected Reserve or National Guard.
You are the surviving spouse of a veteran who died while in service or from a service-connected disability and you have not remarried. Or you remarried after age 57 or Dec. 16, 2003. Spouses of service members missing in action or prisoners of war are also eligible.
You may still qualify even if you don't meet the length-of-service requirements in some cases, such as being discharged for a service-connected disability. Check with the VA for details.
You may not be eligible if you received an "other than honorable," bad conduct or dishonorable discharge, although you can apply with the VA to upgrade your discharge status.
Explore mortgages today and get started on your homeownership goals Get personalized rates. Your lender matches are just a few questions away. What's your zip code? Do you want to purchase or refinance? What's your property type? How do you plan to use this property? Get StartedWon’t affect your credit score
You can apply for a VA loan through a bank, mortgage company or credit union that offers them. The process is similar to applying for other types of mortgages: you supply employment, income and other financial information, and the lender decides whether you qualify.
One unique item you'll need is a VA certificate of eligibility. The certificate of eligibility is a document from the Department of Veterans Affairs that shows you meet the service requirements for a VA loan. You can request the document through the VA, or ask a VA mortgage lender to get the certificate of eligibility for you.
Lenders will review your credit, debt and income to decide whether you qualify and to determine the interest rates they will offer.
The VA doesn’t set a minimum credit score to qualify for a loan. But VA mortgage lenders can set their own minimum standards for FICO credit scores, which are typically in the low- to mid-600s.
Lenders will also look at your credit report, particularly your history of making timely payments.
The VA prefers a debt-to-income ratio , or DTI, of no more than 41%. But borrowers with higher DTI ratios can get approved if they have enough "residual income," another factor lenders consider when reviewing mortgage applications. Residual income is the money left to cover basic living expenses, such as food and clothing, after paying debts, housing and other obligations.
Under most circumstances, VA loans don’t require a minimum down payment. However, if the purchase price of the home is greater than its appraised value, you may have to make up at least a portion of the difference.
And if you are subject to VA loan limits and the home price exceeds the county loan limit, then a down payment will be required.
If you’re buying in a competitive market where buyers outnumber home sellers, you may need a down payment just to get your foot in the door. A bidding situation will require a deposit for the seller, and as a portion of your down payment, it shows you are a serious buyer.
An advantage of putting some money down is it will likely reduce the VA funding fee .
The home you want to buy must meet the VA's minimum property requirements. The standards ensure that homes financed by VA loans are safe, structurally sound and sanitary.
After you're under contract to buy a home, the lender will hire a VA-approved appraiser to estimate the home's market value and make sure it meets the minimum property requirements. A VA appraisal may also be required when refinancing a VA loan.
The VA also offers housing grants for veterans and service members with service-connected disabilities and home loans for Native Americans.
This program offers three grants to help veterans and service members with service-connected disabilities buy or modify a home to meet their needs. The Specially Adapted Housing grant is for a home you own or will buy. The Special Housing Adaptation grant can be for a home you or a family member own or will buy. The Temporary Residence Adaptation grant is for a family member's home where you're temporarily living. You must have a qualifying service-connected disability to be eligible for any of the grants.
You can apply online through the benefits portal on the VA website or download VA Form 26-4555 and send it to your nearest regional loan center.
Helping Native Americans buy, build, improve or refinance homes on federal trust land is the goal of the Native American Veteran Direct Loan program. The program is available to members of certain Native American tribes and their spouses, as well as Alaska Native corporations and residents of Pacific Island territories.
To get started, confirm that your native community participates in the NADL program, apply for a VA certificate of eligibility and contact the VA regional loan center for your state.
Explore mortgages today and get started on your homeownership goals Get personalized rates. Your lender matches are just a few questions away. What's your zip code? Do you want to purchase or refinance? What's your property type? How do you plan to use this property? Get StartedWon’t affect your credit score
About the authorsYou’re following Hal M. Bundrick, CFP®
Visit your My NerdWallet Settings page to see all the writers you're following.
Hal is a former NerdWallet personal finance writer. He is a certified financial planner and former financial advisor. See full bio.
You’re following Barbara Marquand
Visit your My NerdWallet Settings page to see all the writers you're following.
Barbara Marquand is a former NerdWallet writer covering mortgages, homebuying and homeownership. See full bio.
On a similar note.
Download the app
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.
Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
NerdWallet Compare, Inc. NMLS ID# 1617539
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812
Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses
NerdWallet™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105
