VA loans need eligible service, confirmed by your Certificate of Eligibility, a lender’s credit approval, a home you’ll live in that meets VA’s property standards, and income that ordinarily passes two tests: debt-to-income of 41% or less and residual income ($1,003 a month for a Virginia family of four on loans of $80,000 or more). There’s no monthly mortgage insurance and, with full entitlement, no VA down payment requirement; expect closing costs and, unless exempt, a one-time funding fee.
Example terms: a $450,000 VA 30-year fixed base loan plus $9,675 financed ($459,675 total), with 0% down on a $450,000 purchase, at 6.875% interest, 7.203% APR, is repaid in 360 monthly payments of $3,019.74 for principal and interest. Payments do not include taxes and insurance premiums, so the actual payment obligation will be greater. The 2.15% first-use funding fee is financed on top of the base loan; no monthly mortgage insurance. Includes 0.176% in discount points ($809). Purchase of a $450,000 single-family primary residence in Chesterfield County, Virginia; 740 credit score; 30-day rate lock; debt-to-income under 43%. Loan amounts are base loans; where an upfront FHA premium or VA funding fee is financed, it is added on top and the payment is figured on the total. Payments are principal and interest only. Terms as of November 9, 2026. Other numbers on this page are illustrations, not offers. Any rate shown on this site is an example. Rates may change or may not be available at the time of loan commitment or lock-in. More example terms and APR.
When a loan is more than the home’s fair market value (for example, when a VA funding fee or USDA guarantee fee is financed), the interest on the part above the home’s value is not tax deductible for federal income tax purposes. Talk to a tax adviser about deducting interest and charges.
Jump to a section
- VA loan requirements for the buyer: eligibility and the COE
- What credit score do you need for a VA loan?
- No PMI and no required down payment, but you still pay closing costs
- VA residual income and the 41% DTI
- VA seller concessions: the 4% rule vs closing costs
- Why VA rates are lower, and how VA loans are priced
- VA loan requirements for the house: the appraisal and moving in
- VA loans in Richmond and near Fort Lee, Virginia
- Behind on a VA loan? The VA Partial Claim Program
Most of what people hear about VA loans is wrong in one direction or the other: that they’re slow, that sellers hate them, or that 100% financing means you bring nothing to closing. VA loans exist so the people who served can own a home, so the guidelines are written in your favor. Here are the VA loan requirements as lenders apply them in 2026, one at a time, with the math.
VA loan requirements, 2026
- Eligibility
- COEyour Certificate of Eligibility is VA’s answer on your service
- Credit score
- Lender sets itno single VA number; above 600 is generally workable in my files
- Down payment
- None requiredwith full entitlement; closing costs still run about 2% to 3% of the price in my files
- Monthly mortgage insurance
- NoneVA has none, ever
- Funding fee
- 2.15%a one-time charge on a first-use purchase with less than 5% down, and it can be rolled in; veterans receiving VA disability compensation don’t pay it
- Debt-to-income
- 41%or less is VA’s standard; above it needs a second-level review unless residual income beats the guideline by at least 20%
- Residual income
- $1,003a month, Virginia family of four, loans of $80,000 or more
- Seller concessions
- Up to 4%standard closing costs don’t count toward it
- Occupancy
- Primary homea home you’ll live in that meets VA’s property standards
VA loan requirements for the buyer: eligibility and the COE
Eligibility comes from service. Veterans, active-duty service members, National Guard and Reserve members and some surviving spouses can qualify, and VA’s service rules depend on when and how long you served. You don’t have to work that out yourself. The Certificate of Eligibility (COE) is VA’s answer.
You can request your COE on VA.gov, or my team pulls it online once your application is in, using your Social Security number, date of birth and full name. Keep your DD214, your discharge paperwork, handy. The COE also shows whether you’ve used the benefit before and how much entitlement an open VA loan still holds. That math is on VA entitlement.
The first documents I ask for on a VA purchase:
- Your DD214 or COE
- Pay stubs and W-2s, plus tax returns when your income needs them
- Award letters for VA compensation, a pension or Social Security
- A homeowners insurance quote and, once you have one, the ratified contract
Tax-free income like VA disability compensation counts. Give me the amount you actually receive. Adjusting it for the ratio, because no tax comes out of it, is my job. A GI Bill housing allowance is different: the lenders I work with don’t count it as qualifying income, because it’s education money.
What credit score do you need for a VA loan?
There isn’t one number. Each lender sets its own floor for VA loans, so one lender’s no isn’t the program’s no. Here’s how I read scores on VA files:
- Above 600: generally workable.
- Below about 620: it starts to get rough, with fewer options and worse pricing.
- Below about 580: harder still, and still lendable in the right file.
It’s not the end of the world. The lower the score, the more money you want behind you after closing, not necessarily to spend, but to show the file has backing. In my files, VA lenders like to see a few thousand dollars in reserves after closing. If your score needs work first, start with credit scores for a mortgage.
No PMI and no required down payment, but you still pay closing costs
VA has no monthly mortgage insurance, ever. With full entitlement there’s no down payment requirement either. If part of your entitlement is tied up in another VA loan, you may need some money down, and the entitlement page shows exactly how much.
Two costs remain:
- The funding fee. A one-time charge, 2.15% on a first-use purchase with less than 5% down, that you can roll into the loan. Veterans receiving VA disability compensation, and a few other groups, don’t pay it. The chart and the exemptions are on VA funding fee.
- Closing costs. 100% financing doesn’t mean you bring nothing to closing. In my files, VA closing costs run about 2% to 3% of the price, and I try to have the seller or a lender credit cover them. On a purchase, the funding fee is the only cost VA lets you finance.
I’ll tell you what your max is, but I won’t push you to borrow it. The benefit is meant to be used again, the house may become a rental someday, and cash you keep is cash you can reach.
VA residual income and the 41% DTI
VA runs two income tests, and the second one is where the hard files are won or lost.
Debt-to-income ratio (DTI). Your monthly debts, including the new house payment, divided by your gross monthly income. VA’s standard is 41% or less. It isn’t a wall. VA ordinarily wants both tests met, but missing one doesn’t automatically disqualify you. Above 41%, the loan needs a second-level review and a written justification signed by the underwriter’s supervisor, unless your residual income beats VA’s guideline by at least 20%. Some lenders add their own ratio limits on top of VA’s. How lenders count income and debts in general is on how much house you can afford.
Residual income. What’s left each month after taxes, your housing costs, your debts and job-related costs like significant childcare. The lender also subtracts a realistic estimate for the home’s maintenance and utilities, which VA’s rule counts as part of your shelter expense. What’s left is compared with VA’s table for your family size and region, and Virginia is in VA’s South region. The biggest obstacle in VA loans is residual income.
| Family size | Loans of $79,999 or less | Loans of $80,000 or more |
|---|---|---|
| 1 | $382 | $441 |
| 2 | $641 | $738 |
| 3 | $772 | $889 |
| 4 | $868 | $1,003 |
| 5 | $902 | $1,039 |
| Over 5 | Add $75 for each extra member, up to 7 | Add $80 for each extra member, up to 7 |
Those are VA’s monthly guideline figures for the South region, straight from its underwriting rule (38 CFR 36.4340). The same rule cuts the figures by at least 5% for an active-duty service member or military retiree when there’s a clear sign you’ll keep using the facilities of a nearby military base. For a family of four, that takes $1,003 to about $953. Near a base like Fort Lee it can apply, but your lender has to confirm it does.
Childcare counts in both tests
I used to teach that childcare only touched residual income. Then I went back to VA’s loan analysis form itself and corrected myself: significant childcare is a job-related expense, and it flows into both residual income and the debt ratio. Child support you pay counts in both, too. Lenders also layer their own rules on top, so on any VA file with daycare in the budget, I confirm the lender’s childcare treatment before I pick the lender.
Residual income for a family of four
| Gross monthly income | $8,000 | |
| − | Taxes (example) | $1,600 |
| − | New house payment | $2,400 |
| − | Maintenance and utilities estimate | $300 |
| − | Car loan and credit cards | $640 |
| − | Childcare | $800 |
| = | Residual income | $2,260 |
VA’s guideline for a family of four in Virginia on a loan of $80,000 or more is $1,003. This file clears it by $1,257.
DTI without childcare: $3,040 of house payment and debts is 38% of income. Count the $800 of childcare and it’s $3,840, or 48%.
Hypothetical example, rounded.
- VA's standard 41%
Family of four from the example above, with $8,000 of gross monthly income, a $2,400 house payment, $640 of car and card payments and $800 of childcare. Hypothetical example, rounded.
See the numbers
| Debt-to-income | |
|---|---|
| Childcare left out | 38% |
| Childcare counted | 48% |
Same family, two stories. Leave childcare out and the ratio sits under 41%. Count it, the way VA’s form does, and the file is over 41%. Residual income is what carries it: $2,260 beats VA’s $1,003 by far more than 20% (anything over about $1,204), so this file skips the extra supervisor review. With a thinner cushion, the same 48% would need one. That’s why I check the lender’s childcare rule up front. Does that make sense?
VA seller concessions: the 4% rule vs closing costs
VA limits seller concessions to 4%. VA’s current page measures it against the home’s reasonable value (the figure on VA’s notice of value), while older VA documents say 4% of the loan or of the sale, so your lender confirms the base on your file. What VA doesn’t limit is what a seller pays toward your normal closing costs. Standard closing costs do not count toward the 4%.
A concession is anything of value added to the deal at no cost to you. VA’s own examples: the seller paying your funding fee, paying off your debts, or prepaying your homeowners insurance. Seller money for a temporary buydown is on VA’s counted list too. Discount points are the gray area: VA’s own fee page says they aren’t subject to the 4% limit, but lenders treat seller-paid buydowns differently, so ask before points go into the offer.
Seller help on a $400,000 VA purchase
| Seller pays your funding fee | $8,600 | |
| + | Seller pays off a credit card balance | $4,000 |
| = | Concessions counted toward the 4% | $12,600 |
The cap is 4% of $400,000, or $16,000. Here the price, the appraised value and the loan are all $400,000, so the cap is the same whichever base applies. This deal has $3,400 of room left.
| Seller also pays your normal closing costs | $9,000 |
Not counted toward the 4%. Total seller help: $21,600.
Hypothetical example. First-use funding fee at 2.15% with nothing down.
- Seller pays your funding fee
- Seller pays off a credit card
- Room left under the cap
- Seller pays your normal closing costs
VA’s 4% cap on concessions $16,000
Not counted toward the 4% $9,000
Hypothetical example. First-use funding fee at 2.15% with nothing down. The price, the appraised value and the loan are all $400,000.
See the numbers
| Part | Amount | |
|---|---|---|
| VA's 4% cap on concessions | Seller pays your funding fee | $8,600 |
| VA's 4% cap on concessions | Seller pays off a credit card | $4,000 |
| VA's 4% cap on concessions | Room left under the cap | $3,400 |
| VA's 4% cap on concessions | Total | $16,000 |
| Not counted toward the 4% | Seller pays your normal closing costs | $9,000 |
| Not counted toward the 4% | Total | $9,000 |
Paying off a buyer’s debt is one of the strongest uses of concession money. I’ve used the 4% to pay off a buyer’s credit cards and car loan, which can do more for the debt ratio than a lower price would.
Tyler’s take
Standard closing costs do not count toward the 4%, so don’t let anyone treat 4% as the limit on all seller help. When an agent writes the addendum, I want the seller’s dollars split into two lines, closing costs and concessions, so the underwriter sees what each dollar is for. In my experience, a lender that applies 4% to everything the seller pays is following its own rule, not VA’s.
In my read, as of late 2026, this isn’t a seller’s market, so asking for seller credits on a VA offer is normal.
Can a veteran pay a buyer’s agent?
Yes, as of November 2026. A VA circular in effect since August 10, 2024, which stays in effect until VA rescinds it, lets veterans pay reasonable and customary buyer-broker charges. You can’t finance those charges, so they count toward your cash to close. A seller can still pay them, and VA generally doesn’t count seller-paid buyer-broker charges toward the 4%.
Why VA rates are lower, and how VA loans are priced
Interest is priced on risk. On a $400,000 VA loan with full entitlement, VA guarantees up to 25%, or $100,000. If the loan goes bad, VA covers up to $100,000 of the lender’s loss, and the lender earned interest on all $400,000 along the way. If I were the bank, I’d take that deal every time. A conventional lender has no government backstop, which is why, in my files, VA usually prices better than conventional for the same borrower.
Three things I watch on VA pricing:
- The advantage doesn’t have to reach you. A lender can keep VA’s pricing edge for itself. You don’t have to use any particular VA lender. We all borrow our money from the same place; the difference is what you pay to do it. Compare offers.
- Credit score breaks differ by loan type. On one wholesale rate sheet I worked from in 2026, the price breaks for scores of 700 to 739 and 740 and up applied only to FHA and USDA. VA’s only break was a small one at 720, so a VA borrower already above 720 gained nothing from a rapid rescore and risked slipping under it. Check pricing by loan type before you chase a rescore.
- Credits now, streamline later. Some VA buyers take a slightly higher rate so the lender pays the closing costs, then plan a VA streamline refinance once the loan has seasoned. VA’s rule is six consecutive monthly payments and 210 days after the first payment due date, whichever comes later. It’s an option, not a promise. Rates can move the wrong way, so only do it if you’re comfortable keeping the higher payment for good.
VA loan requirements for the house: the appraisal and moving in
VA purchases almost always need a VA appraisal, and VA’s property standards are strict on purpose: a veteran shouldn’t move in after a deployment and find a leaking bathroom. The closing date isn’t a set parameter; the thing that delays a VA closing is the appraisal. For planning, 30 or 45 days both work. My fastest VA close was 12 days, with a complete file up front and a quick appraisal. What the appraiser checks, and what to do if the value comes in low, is on VA appraisals and minimum property requirements.
For a seller, the practical VA requirements are the repairs the appraisal calls for and any concessions they agree to. If a listing agent worries that a VA offer will drag, the answer is a complete file and a realistic closing date, not a different loan.
The house also has to be your home. A VA loan is a primary-residence loan: you buy it to move in, and renting it out before you live there is fraud. Keeping it as a rental after you’ve genuinely lived there and moved on is a different story, and the entitlement page covers it.
VA loans in Richmond and near Fort Lee, Virginia
Every locality in the Richmond area sits at the 2026 baseline conforming loan limit of $832,750. For VA, that number only matters when part of your entitlement is in use; with full entitlement there’s no VA loan limit. First-time buyers should also look at the state’s housing finance programs, which include a VA first mortgage and, within income and price limits, a closing cost grant of up to 2% of the price that is never repaid. Those are on Virginia first-time buyer programs. Buying near Fort Lee, Virginia (named Fort Gregg-Adams from 2023 to 2025)? Start with buying near Fort Lee.
Behind on a VA loan? The VA Partial Claim Program
VA launched the VA Partial Claim Program on June 15, 2026. If you’re behind on payments, your servicer can bring the loan current after you complete a three-month trial plan, and VA reimburses the servicer. You repay that amount when you pay off the loan, refinance or sell. If you’re falling behind, call your servicer early and ask about it by name. Your other options are on what to do if you’re behind on your mortgage.
Start with the COE and the monthly payment you’re comfortable with, not the price. The rest of the VA rules are easier to work with than their reputation, and they were written for you.
Questions people ask me about this
Can my spouse or partner be on my VA loan?
A spouse who isn’t a veteran can be on your VA loan with you, with no penalty, and VA can base its guaranty on the whole loan. A partner you aren’t married to, or a parent, brings no entitlement. VA’s rule figures the guaranty only on the part of the loan allocable to you, and that kind of joint loan needs VA’s prior approval, so expect a down payment. If your spouse’s score is the lower one and their income isn’t needed, leaving them off the loan can improve your pricing; whether they can stay on the deed is a question for your lender and your settlement attorney.
Can I start a VA pre-approval on the VA website?
You can request your COE on VA.gov, but VA doesn’t make the loan or issue the pre-approval; a lender makes the loan, and a loan officer like me issues the pre-approval. We only pre-approve, we don’t pre-qualify. Big difference. A letter I issue means your income, assets and credit have been documented and reviewed, not just discussed.
Can National Guard and Reserve members meet the VA loan requirements?
Yes. Guard and Reserve service can earn VA home loan eligibility. How much service you need depends on when and how you served, and your COE settles it. Guard and Reserve members pay the same funding fee rates as everyone else.
Can I use my VA loan more than once?
Yes. Your entitlement is a dollar amount, not a one-time ticket, and a modest first VA loan rarely uses all of it. You can even have two VA loans at once if your remaining entitlement covers the new one and you genuinely move into the new home. The VA entitlement page has the math.
Sources
- Department of Veterans Affairs, VA funding fee and loan closing costs
- 38 CFR 36.4340, VA underwriting standards (debt-to-income ratio and residual income)
- Department of Veterans Affairs, VA home loan limits
- VA Circular 26-24-14, temporary local variance for certain buyer-broker charges
- 38 CFR 36.4308, joint loans
- Department of Veterans Affairs news release, VA launches Partial Claim Program (June 15, 2026)
Examples on this page are hypothetical illustrations, rounded for teaching. They are not a quote or an offer to lend. Rates may change or may not be available at the time of loan commitment or lock-in. For example terms with the annual percentage rate (APR), see example terms and APR.