VA Loan Mastery

VA loan eligibility is based on service history, not credit or income. Active-duty service members qualify after 90 continuous days. Veterans generally qualify after 24 months of service (or the full period ordered, if less). National Guard and Reserve members qualify after 6 years of service or 90 days of active-duty deployment. Surviving spouses of service members who died in the line of duty or from a service-connected disability may also be eligible.

The Certificate of Eligibility (COE) is the VA's official confirmation. Your lender can pull it electronically through the VA Web LGY portal in most cases within minutes. You can also request it yourself through eBenefits with a DD-214.

What to Have Ready Before You Request the COE

• DD-214 (member copy 4) for veterans
• Statement of service on official letterhead for active duty
• Points statement for Guard and Reserve members
• Marriage certificate and service member's death documentation for surviving spouses

Every VA benefit is meaningful, but three drive the majority of the value: 100% financing with no down payment, no monthly mortgage insurance, and interest rates that consistently price 0.25–0.50% below comparable conventional loans due to the VA guaranty. Together, on a $400,000 home, these save roughly $300–450 per month compared to a 5%-down conventional loan.

The VA funding fee is a one-time charge that keeps the VA loan program self-sustaining. It's based on three factors: whether this is your first VA loan or a subsequent use, the size of your down payment (if any), and the loan type. For most first-time users buying with $0 down, the fee is 2.15% of the loan amount. Subsequent use with $0 down is 3.3%.

Who Is Exempt from the Funding Fee

• Veterans receiving VA disability compensation (any percentage)
• Purple Heart recipients on active duty
• Surviving spouses receiving DIC benefits
• Veterans rated by the VA as eligible for disability comp but receiving retirement pay

The IRRRL is a VA-to-VA refinance designed to move you from one VA loan to a new VA loan at a lower rate. It skips most of the standard underwriting: no appraisal, no income verification in most cases, and no new Certificate of Eligibility. Closing costs are lower than a standard refi and the funding fee drops to 0.5%.

IRRRL Qualification Checklist

• Existing loan must be a VA loan
• New rate must be lower (unless refinancing out of an ARM)
• You must have made 6 consecutive on-time payments
• At least 210 days must have passed since your first payment on the existing VA loan
• The property does not need to be your current primary residence

VA entitlement is the amount the VA guarantees on your behalf. Most veterans have full entitlement, which means no county loan limit applies for a $0-down purchase. When you pay off a prior VA loan (through sale or refinance), your entitlement is restored - often automatically. If you keep a prior VA-financed home and want a second VA loan, you can typically use remaining bonus entitlement, subject to the county conforming loan limit.