VA Purchase Loan

At VA Help Center, we help eligible veterans, active-duty service members, and qualifying surviving spouses explore VA-backed purchase loan options. A VA purchase loan can help you buy, build, or improve a home and may allow you to purchase without a down payment.

Are You Eligible for a VA-Backed Purchase Loan?

You may qualify if all of the following apply:

You qualify for a VA-backed home loan Certificate of Eligibility (COE)
You meet applicable VA and lender credit, income, and underwriting requirements
You intend to occupy the home as your residence

Learn more about VA home loan eligibility

Benefits of a VA-Backed Purchase Loan

VA purchase loans may offer:

No down payment required when the purchase price does not exceed the home's appraised value and applicable VA requirements are met
Competitive interest rates and favorable loan terms
No private mortgage insurance (PMI) or FHA mortgage insurance premium (MIP)
Certain limitations on borrower-paid closing costs
The ability for a seller to pay certain allowable closing costs and concessions
No prepayment penalty for paying the loan off early

VA Loan Limits and Entitlement

Veterans with full VA home loan entitlement generally do not have a VA-imposed county loan limit. The amount you can borrow still depends on lender approval, your finances, and the property's appraised value.

If you have previously used some of your VA entitlement and it has not been restored, remaining entitlement and county loan limits may affect how much you can borrow without a down payment.

PMI is generally associated with conventional mortgages when the borrower has less than a specified amount of equity or down payment.

FHA loans generally require mortgage insurance premiums. VA-backed loans do not require monthly PMI or MIP.

How You Can Use Your VA Purchase Loan

Buy a single-family home, including eligible properties with up to 4 units
Buy a condominium in a VA-approved project
Purchase and improve an eligible home
Buy an eligible manufactured home and/or lot
Build a new home
Add qualifying energy-efficient improvements

You may also be able to:

Use your VA home loan benefit more than once
Restore previously used entitlement when VA requirements are met
Assume an eligible VA-backed home loan when applicable requirements are satisfied
Use a VA-backed purchase loan for your first home or a future home

How to Buy a Home With a VA-Backed Purchase Loan

Buying a home can involve several steps. We can help you with your Certificate of Eligibility, qualification, loan options, application, VA appraisal requirements, underwriting, and closing.

Start your VA home purchase

Loan Fees You Should Know About

A VA funding fee may apply to a VA purchase loan. The funding fee is a one-time charge that helps support the VA home loan program.

Some borrowers are exempt from the VA funding fee, including certain veterans receiving or eligible to receive VA compensation for a service-connected disability and certain qualifying surviving spouses.

Your loan may also include interest and other allowable closing costs. The specific costs depend on the transaction, property, loan amount, and lender.

Frequently Asked Questions

What is a Certificate of Eligibility (COE)?

A Certificate of Eligibility verifies to a lender that you meet the VA's service-related eligibility requirements for the VA home loan benefit. We can assist you with obtaining your COE.

Can I use my VA loan benefit multiple times?

Yes. The VA home loan benefit can generally be used more than once. Your available entitlement will depend on whether entitlement used on previous VA loans has been restored or remains tied to another loan.

Is there a maximum VA loan amount?

VA does not impose a county loan limit on borrowers with full entitlement. Your actual loan amount is still subject to lender approval, income and credit qualification, and the property's appraised value.

Borrowers who do not have full entitlement may be affected by remaining entitlement and applicable county loan limits.

Do I have to live in the home I buy?

VA-backed purchase loans generally require the borrower to intend to occupy the property as their residence.

What if I have a service-connected disability?

A service-connected disability may affect certain VA home loan benefits, including possible exemption from the VA funding fee. Your underlying VA loan eligibility is determined according to your service history, duty or discharge status, and VA eligibility rules.

Contact VA Help Center

If you have questions or want help applying for a VA purchase loan, contact us and we'll help you through the next steps.