What Is a VA Loan? A Complete 2026 Guide

What a VA loan is

A VA loan is a mortgage made by a private lender (like the ones Jodie works with) and partially guaranteed by the U.S. Department of Veterans Affairs. That government guarantee is what lets lenders offer terms you can't get anywhere else — most notably $0 down and no private mortgage insurance.

The VA doesn't lend you the money or set your interest rate. It backs a portion of the loan, which lowers the lender's risk. You still qualify based on your income, credit, and the home's appraised value.

The core benefits

A few things make VA loans stand apart from FHA and conventional financing:

• ✦$0 down payment with full entitlement — you can finance 100% of the purchase price.
• ✦No private mortgage insurance (PMI), ever — a savings of hundreds of dollars a month versus low-down conventional or FHA loans.
• ✦No loan maximum with full entitlement — since the Blue Water Navy Act, your approval is based on what you can afford, not a capped loan amount.
• ✦Competitive rates and flexible credit guidelines.
• ✦A reusable benefit — you can use it again, and it's often restored in full once a prior VA loan is paid off.

Who is eligible

Eligibility is based on your service history. Most active-duty members qualify after 90 continuous days of service; veterans, National Guard, and Reserve members qualify based on length and type of service; and eligible surviving spouses can qualify as well.

You'll prove eligibility with a Certificate of Eligibility (COE). Jodie can pull your COE for you in most cases — you don't have to chase it down yourself.

The one cost to know: the funding fee

VA loans have no monthly mortgage insurance, but most borrowers pay a one-time VA funding fee that helps keep the program running at no cost to taxpayers. The fee is a percentage of your loan amount and depends on your down payment and whether it's your first VA loan.

Many veterans are exempt — including those receiving VA compensation for a service-connected disability. You can pay the fee at closing or roll it into your loan.

How the process works

A VA purchase looks a lot like any other mortgage, with a few VA-specific steps: we confirm your eligibility and pull your COE, get you pre-approved, and then the home goes through a VA appraisal to confirm value and basic condition. From there it's underwriting to clear-to-close — and the keys are yours.