Frequently asked questions
What is the VA funding fee and can I avoid it?
The VA funding fee is a one-time charge (1.25–3.3% of the loan) that funds the VA loan program so taxpayers don't bear the cost. It can be financed into the loan. Veterans with a service-connected disability (10%+), surviving spouses, and Purple Heart recipients are exempt. Set the override to 0 if you are exempt.
Is it better to put money down on a VA loan?
A down payment reduces both your funding fee rate and your loan balance. With 5% down the fee drops from 2.15% to 1.5%; at 10%+ it drops to 1.25%. If you have the cash, a 5% down payment meaningfully reduces total costs. But the option to put 0% down is valuable for cash-constrained buyers who can invest elsewhere.
How does the VA loan compare to FHA?
VA loans have no PMI (ever), no down payment requirement, and no loan limits for full entitlement. FHA requires 3.5% minimum down, charges upfront MIP (1.75%) plus annual MIP (0.8–0.85%) that often lasts the life of the loan. For eligible veterans, VA is almost always the better financial choice.
Can I use my VA loan benefit more than once?
Yes. Your VA entitlement can be restored and reused. If you sell the home and pay off the VA loan, your entitlement is restored. You can also have multiple VA loans simultaneously if you have remaining entitlement. Subsequent use has a higher funding fee (3.3% with 0% down) unless you put 5%+ down.
Are there income limits for VA loans?
No. Unlike FHA and USDA loans, VA loans have no income ceiling. However, you must meet the lender's debt-to-income requirements (typically 41% or below, though VA allows higher with residual income qualification). The VA also requires sufficient 'residual income' after all expenses based on family size and region.
What is the VA loan limit?
For veterans with full entitlement (never had a VA loan, or restored), there is no loan limit — you can borrow any amount a lender approves. For veterans with reduced entitlement (existing VA loan or prior default), county-specific limits apply and determine the maximum zero-down amount. Above that, you need a down payment for the excess.