Home Buying
A Veteran's Guide to VA Home Loans
No down payment, no mortgage insurance, and a rate that usually beats conventional. Here is how eligibility, the COE, and the funding fee actually work.
The VA does not lend money. It guarantees part of a loan a lender like Summit makes.
The VA home loan benefit is the strongest mortgage product available to most of the people who qualify for it, and it is routinely left on the table. Roughly a third of eligible veterans have never used it, usually because of a misconception: that it is slow, that sellers avoid it, or that it is only for first-time buyers. None of those are true.
Here is what the benefit is, who gets it, and where the real friction lies.
What the VA actually does
The Department of Veterans Affairs does not issue mortgages. It guarantees a portion of a loan made by a private lender, typically 25% of the loan amount. That guarantee is what lets a lender approve a mortgage with no down payment and no mortgage insurance, because the government absorbs part of the loss if the loan defaults.
Everything else about the mortgage, meaning the rate, the underwriting, the appraisal, the closing, runs through the lender. That is why VA rates vary between lenders and why shopping still matters.
Who is eligible
Service requirements depend on when and how you served, and the thresholds are more forgiving than most people expect.
The benefit does not expire and it is not limited to one use. It also has no income cap and no first-time-buyer requirement.
The Certificate of Eligibility
The COE is the document proving to a lender that you qualify. It is not an approval and it says nothing about your credit or income; it confirms your service entitlement and how much of it remains.
There are three ways to get one. Most lenders, Summit included, can pull it electronically through the VA's system in a few minutes with your name, Social Security number, and date of birth. You can also request it yourself through the VA's eBenefits portal, which usually returns it the same day. The paper route, VA Form 26-1880 by mail, takes four to six weeks and is worth avoiding.
Have your DD-214 available if you are separated, or a statement of service signed by your command if you are still serving. Guard and Reserve members should have their NGB-22 or points statements.
The funding fee
This is the part that surprises people, because "no down payment, no mortgage insurance" gets repeated so often that the funding fee falls out of the sentence. It is a one-time charge paid to the VA that keeps the program self-sustaining rather than taxpayer-funded. It can be rolled into the loan rather than paid at closing.
On a $340,000 purchase with no money down and first-time use, the fee is $7,310. Rolled into the loan at 6.125% APR over 30 years, it adds about $44 to the monthly payment. Compare that against conventional mortgage insurance on a 5%-down loan, which often runs $140 to $210 a month and continues for years until you reach 20% equity. The funding fee is usually the cheaper of the two by a wide margin, and veterans with any compensable service-connected disability rating pay nothing at all.
If you were rated after closing
Veterans who receive a disability rating retroactive to a date before their loan closed can apply for a refund of the funding fee they already paid. Refunds of five figures are not unusual. Contact your lender's VA department or your regional loan center with the rating decision letter.
Four misconceptions worth clearing up
"VA loans take forever to close." Average closing times run within a few days of conventional loans. The delay people remember usually comes from the VA appraisal, which is ordered through a VA-assigned appraiser and can take longer in rural areas. Ordering it early solves most of it.
"Sellers reject VA offers." This one has a kernel of truth and a lot of exaggeration. The VA appraisal includes Minimum Property Requirements covering safety and habitability, and a seller with a fixer-upper may prefer a cash offer. In a normal transaction with a sound house, a VA offer is as strong as any other, and your agent can say so in writing.
"You can only use it once." Entitlement restores when you sell the home and pay off the loan. It is common to use the benefit three or four times across a career. You can even hold two VA loans at once if you have remaining entitlement, which matters during a PCS move.
"There is a loan limit." County loan limits were eliminated in 2020 for borrowers with full entitlement. What limits you is what a lender will approve based on income and credit, the same as any mortgage.
What the loan will not do
A VA loan is for a primary residence you intend to occupy, generally within 60 days of closing. It cannot be used for a vacation home or a pure investment property, though a duplex or fourplex qualifies if you live in one unit. Manufactured homes are eligible under narrower rules. And the property has to pass the Minimum Property Requirements, which means a house that needs major structural or system repairs may need those addressed before closing.
Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
Let us pull your COE for you
Summit can retrieve your Certificate of Eligibility electronically in minutes and walk you through what your entitlement supports.