Reviewed by Jeff Shin, NMLS #1041652. Updated .
Who qualifies for a VA home loan
The Department of Veterans Affairs sets eligibility by service. Veterans, active-duty service members, members of the National Guard and Reserve who meet the service requirement, and certain surviving spouses can qualify. Eligibility is proven with a Certificate of Eligibility (COE), which a lender can usually pull in minutes. The VA does not lend the money. It guarantees part of the loan, and a private lender makes it.
- Down payment. The VA does not require a down payment for borrowers with full entitlement, up to what the lender will approve. With partial entitlement, a down payment may be needed above the county limit.
- No monthly mortgage insurance. VA loans carry no PMI. Instead there is a one-time VA funding fee, which the VA waives for veterans receiving compensation for a service-connected disability.
- Residual income. On top of the debt-to-income ratio, the VA checks how much money is left each month after the house payment and debts. It is often the real constraint in a VA file.
- Occupancy and property. The home must be your primary residence, and the VA appraisal checks minimum property requirements as well as value.
VA loan rates
VA home loan rates often price below conventional rates for the same borrower, because the VA guaranty lowers the lender’s risk. Two things move a VA quote more than people expect: discount points, and the funding fee if it is financed. Compare the APR and the cash to close, then check today’s quote against the weekly mortgage rate benchmark. More on timing: VA pre-approval and rate lock checks.
VA IRRRL: the VA streamline refinance
The Interest Rate Reduction Refinance Loan moves an existing VA loan into a new VA loan at a lower rate, or from an adjustable rate to a fixed one. The VA does not require a new appraisal or income verification for an IRRRL, though many lenders still check credit. There are recoupment and seasoning rules, so the savings have to cover the cost within a set period. See VA IRRRL checks before you chase a lower payment.
VA cash-out refinance
A VA cash-out refinance replaces any existing mortgage, VA or not, with a new VA loan and pays out part of your equity. It needs a full appraisal and full underwriting. VA rules allow a higher loan-to-value than most cash-out programs, but many lenders cap it below the VA maximum. Details in VA cash-out refinance checks.
Choosing a VA lender
Every VA lender follows the same VA rules, but credit minimums, residual-income handling, and pricing vary from one lender to the next. Barrett Financial Group, L.L.C. (NMLS #181106) is the broker and can price one VA file across several wholesale lenders. For deeper reading: VA loan deep dive and VA funding fee exemption checks. For a side-by-side walkthrough, see how to compare VA loan lenders.
Questions borrowers ask
Do VA loans require a down payment?
The VA does not require a down payment for borrowers with full entitlement, as long as the price and loan amount fit what the lender approves. Borrowers with partial entitlement may need a down payment above the county loan limit.
Do VA loans have mortgage insurance?
No. VA loans have no monthly private mortgage insurance. There is a one-time VA funding fee, which the VA waives for veterans who receive compensation for a service-connected disability.
What is a VA IRRRL?
An Interest Rate Reduction Refinance Loan is the VA streamline refinance. It replaces an existing VA loan with a new VA loan at a lower rate or a fixed rate. The VA does not require an appraisal or income verification, but the savings must recoup the costs within the VA time limit.
Can I get a VA cash-out refinance if my current loan is not VA?
Yes. A VA cash-out refinance can replace a conventional, FHA, or VA loan, as long as you are eligible for VA benefits and the home is your primary residence.
How do I get pre-approved for a VA loan?
You need a Certificate of Eligibility, and a lender reviews your credit, income, debts, and residual income. BankPricer can review your numbers first, with no credit pull, before you apply anywhere.
Sources
Program rules on this page are summarized from the agencies that set them. Lenders can add stricter requirements. Checked October 7, 2026.
Related
- Comparing VA loan lenders
- VA funding fee (glossary)
- VA residual income (glossary)
- VA IRRRL (glossary)
- Mortgage glossary
VA lenders by city: all 33 markets
Every page in this section, not a selected eight — a hub that links a quarter of its own children is a hub that hides the other three quarters.
- Arlington Heights, IL
- Aurora, IL
- Austin, TX
- Barrington, IL
- Bolingbrook, IL
- Chicago, IL
- Dallas, TX
- Detroit, MI
- Downers Grove, IL
- Elgin, IL
- Evanston, IL
- Fort Wayne, IN
- Glenview, IL
- Grand Rapids, MI
- Hinsdale, IL
- Houston, TX
- Indianapolis, IN
- Jersey City, NJ
- Joliet, IL
- Wichita, KS
- Naperville, IL
- Newark, NJ
- Northbrook, IL
- Oak Brook, IL
- Overland Park, KS
- Palatine, IL
- Park Ridge, IL
- San Antonio, TX
- Schaumburg, IL
- Skokie, IL
- Kansas City, KS
- Wheaton, IL
- Wilmette, IL
Pages marked not licensed cover markets outside the licensed footprint. They are educational only. Jeff Shin is licensed to originate residential mortgage loans in Illinois, Indiana, Kansas, Michigan, New Jersey, Texas.
Other loan products
Not sure which of these applies to you?
That is usually the actual question. Send the situation rather than the product name — purchase or refinance, primary or investment, price range, and timeline — and you get the structures that fit, with what each one costs.