What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. Key benefits include 0% down payment, no PMI, competitive interest rates, and limited closing costs.
VA Loan Formula
VA Funding Fee Rates
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (no down) | 2.15% | 3.3% |
| 5% - 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Disability exempt | 0% | 0% |
Frequently Asked Questions
Who is eligible for a VA loan?
Veterans with 90+ days of active wartime service, 181+ days of peacetime service, 6+ years in the National Guard/Reserves, and surviving spouses of service members who died in the line of duty or from a service-connected disability.
Is the VA funding fee tax deductible?
Yes, the VA funding fee may be tax-deductible as a form of mortgage insurance. Consult a tax professional to confirm eligibility based on your specific situation.
Can I use a VA loan more than once?
Yes. You can reuse your VA loan benefit after paying off a previous VA loan or selling the property. Your entitlement can be restored. Subsequent use has a higher funding fee (3.3% vs 2.15% for 0% down).