According to the U.S. Department of Veteran Affairs (VA), 528,340 VA home loans were guaranteed in 2025. If you’re curious about VA loans, this guide helps break down key things to know about them so you can better understand what they are, how they’re different, who is eligible for one, if one might be right for you, and how to get one.
What is a VA loan?
A mortgage is a loan used to purchase or maintain a home, or other real estate. A VA loan, also known as a VA home loan, is a type of mortgage that helps veterans, servicemembers, and their eligible family members own homes. VA loans were created by the original GI Bill in 1944 which funded college education, unemployment insurance, and housing opportunities.
Who can get a VA loan?
VA loan eligibility is established by two key areas:
- Obtaining and showing a Certificate of Eligibility (COE) based on your service history and duty status
- Meeting your lender’s credit, income, and loan requirements to get financing
What is a COE and how do you get one?
A COE confirms for your lender that you are eligible for the VA home loan benefit. There are minimum active-duty service requirements to obtain a COE.
Minimum active-duty service requirements to obtain a COE
| If you are a… | Service requirements are… | Additional details, if applicable |
| Servicemember | That you’ve served for at least 90 continuous days, without a break in service | The VA breaks down requirements based on your military branch and dates of service here |
| Veteran | Dependent on when you served, but generally at least 24 months of service or 90 days or if you were called to active duty, discharged for a service-connected disability, or discharged for a hardship | |
| National Guard member | Depends on when you served – if from August 2, 1990 to present, at least 90 days of active duty, including at least 30 consecutive days. If prior to that, it’ll depend on a few other factors such as your time serving and if you were honorably discharged. | |
| Reserve member | Depends on when you served – if from August 2, 1990 to present, at least 90 days of active duty. If prior to that, it’ll depend on a few other factors such as your time serving and if you were honorably discharged or placed on the retirement list |
You may also qualify for a COE if you:
- Were discharged for hardship, reduction in force, certain medical conditions, or a service-connected disability
- Are the surviving spouse of a veteran, veteran who’s missing in action, or veteran being held as a prisoner of war (POW)
Request your COE
Use the VA’s eBenefits to request a COE. You may need to sign in or create an account.If you’re a veteran, you’ll need a copy of your discharge or separation papers (DD214) to get your COE. If you’re a servicemember, you’ll usually need a statement of service signed by your commander, adjutant, or personnel officer.
How are VA home loans different
VA home loans are different from other mortgages because the VA guarantees a portion of the loan, which enables lenders to provide more favorable terms. You may also sometimes hear them called VA-backed loans, although the VA home loans are actually provided by lenders like USAA Bank.
Types of VA loans
There are a few types of VA loans available, including:
- Purchase loan: for buying a home
- Interest-rate reduction refinance loan: an Interest Rate Reduction Refinance Loan (IRRRL) is for refinancing an existing VA-backed home loan
- Cash-out refinance loan: VA-backed cash-out refinance loans are for refinancing to get cash out of your home equity to pay off debt or use funds for something else
A purchase loan is the most common when you hear the terms VA home loan or VA loan. These other loans are available depending on eligibility and what you’re looking to do (such as whether you are interested in refinancing to lower your rate or to cash out on your home equity). The types of loans offered vary by lender, so you’ll want to confirm which options are available with your USAA Bank lending team.
Benefits of a VA loan
VA loans help eligible homebuyers purchase a home at a competitive interest rate, many times without putting any money down or having to pay mortgage insurance, sometimes referred to as private mortgage insurance (PMI). The VA notes that nearly 90% of VA-backed loans are made with no down payment. While no down payment is common with a VA loan, you may be required to make one depending on your credit scores or other lender-based factors. You should also be prepared to put some money down to cover closing costs, which we explain a bit more later in this article. Additionally, the VA limits the lender fees that can be charged, so it may be a more affordable option when choosing a loan type.
VA loans are also a lifetime benefit, so you can use it multiple times. You may also be able to refinance with favorable rates and terms as part of a VA-backed refinance.
How to get a VA loan
The steps to getting a VA loan usually include:
1. Get prequalified
It’s usually a good idea to get prequalified by a lender like USAA Bank to understand what price range of VA home loan you may qualify for. You can also work with your lender to ask questions about the homebuying process, especially if you’re a first-time homebuyer. Another benefit is that once you’re prequalified, you will have a prequalification letter to shop for homes and support any offers.
2. Obtain your COE
Use the steps we outline above to get your COE. A COE may be required by the lender and in many cases lenders like USAA Bank can help you gather this documentation.
3. Apply for your VA home loan
Once you find a home, you’ll want to complete a mortgage application with your lender.
4. Provide any documentation needed to your lender
You’ll have to meet any financial guidelines set by the VA and your lender as well as provide any requested documentation on income and expenses. Usually, lenders will review information such as your credit scores, credit report and history, assets, and employment history. The exact process, information necessary, and documentation required may vary.
5. Finalize your loan with your lender and close on your home
You’ll have additional steps in the homebuying process unrelated to your loan such as negotiating an offer, obtaining an appraisal and completing an inspection. However, once you finalize an offer, determine any final contract details, and plan a closing date, then you’ll be in good shape to finalize your VA loan specifics and confirm things such as closing costs, monthly payments, and when payments will begin.
Components of a VA loan
Similar to other mortgages, there are a few things about a VA loan that are helpful to understand so you know what to expect.
VA home loan funding fee
There is a funding fee associated with getting a VA home loan to help cover administrative costs for the VA. This VA funding fee is determined by Congress, so it’s a set amount that your lender can help you confirm. Additionally, you may be able to roll the funding fee into the total VA loan financing cost.
Closing costs
Closing costs may include things such as a VA appraisal, credit report, survey, title fees, recording fees, a loan origination fee, and discount points. Generally, you may need to pay certain fees upfront such as your VA appraisal fee and credit report fee, while other closing costs may be rolled into your VA loan.
To estimate overall closing costs, many homeowners see these equal approximately 1 – 5% of the VA loan amount. These costs may vary based on several factors, including the price of the home you’re purchasing. For instance, if there is not a clear property line you may need to get a survey to ensure you have the exact land area and value determined. Speak with USAA Bank about which upfront cost would be applicable to you as they vary between lenders.
Other costs that may be part of a VA home loan
During your VA home loan underwriting process and approval, your lender will help outline the various fees and your monthly payments.
Like other mortgages, with VA loans there are usually two types of costs — one-time costs when your initial loan closes and then ongoing costs. One-time costs include closing costs, VA home loan funding fee, and any costs associated with confirming your home’s value and property details such as a survey and appraisal. The ongoing costs include principal payments, interest costs, taxes, home insurance, and if necessary, flood insurance.
Calculating VA loan payments
Just as with any mortgage, you’ll want to work with your lending team to understand your monthly payments based on your home purchase price, the interest rate you qualify for, and any estimated taxes and insurance.
VA loan limits
There are two types of entitlement for VA loans — full and remaining entitlement. You have full entitlement if you are a first-time homebuyer or have sold a home and paid in full any previous VA home loan. With full entitlement, there are no loan limits for a VA home loan. As with any mortgage, though, you’ll still need to talk with your loan officer as additional requirements may vary between lenders.
Remaining entitlement is when you currently have an active VA home loan, have paid a previous VA loan in full but still own the home, or have refinanced a VA loan into a non-VA loan and still own your home. With remaining entitlement, your loan limits will be based on the location of the home you’re buying — there’s a county loan limit equal to Federal Housing Finance Agency (FHFA) limits. Details on VA loan limits are available here .
VA loans: taxes and insurance
In many cases your property taxes and home insurance are rolled into your monthly payment, just like other mortgages. The exact amounts will depend on various factors including where your home is located and your property size. You’ll work with your lending team and/or insurance company to understand your specific costs.
How escrow works
To help you manage the ongoing costs such as taxes, your mortgage servicer will usually create an escrow account to fund these annual or semi-annual expenses. Because these amounts can change, your lending team will help you estimate them when first getting your VA loan and then adjust annually to align with any changes depending on your home, location, and changes in taxes. This process can vary by state, however.
Refinancing a VA loan
If you already have a VA home loan and are looking to refinance, you’ll want to explore what the current interest rate is to see if it’ll be beneficial for you to refinance. The IRRRL is available for refinancing an existing VA-backed home loan.
Learn more about VA loans
A VA loan is a great option that many servicemembers and veterans use to buy a home. If you’re interested in learning more about VA home loans or want to ask questions, submit your information today to speak with a loan officer.
Tools and resources provided by USAA Federal Savings Bank should be considered general advice and for informational purposes only. All information is subject to change without notice and may not apply to all members. Products, services or features mentioned may not be offered by USAA Federal Savings Bank. The information contained is not intended to represent any endorsement, expressed or implied, by USAA Federal Savings Bank or any affiliates.
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