How a VA loan works
The VA does not lend money. It guarantees a portion of the loan, which lets lenders offer exceptional terms. You apply with a TouchPoint loan officer, we underwrite the loan, and the VA guarantee protects the lender if you default.
VA loan benefits
- 0% down. No down payment required, ever.
- No private mortgage insurance (PMI). Conventional and FHA loans require PMI; VA does not.
- Competitive rates. VA rates are typically 0.25% to 0.50% below conventional.
- Limited closing costs. The VA caps what lenders can charge in origination fees.
- No prepayment penalty. Pay off your loan early without fees.
- Assumable. A qualified buyer can take over your loan at your rate, which is valuable in a rising-rate environment.
VA loan eligibility
You are eligible for a VA loan if you meet any of these:
- Served 90 consecutive days of active service during wartime
- Served 181 days of active service during peacetime
- Served 6 years in the National Guard or Reserves
- Are the surviving spouse of a service member who died in the line of duty or from a service-related disability
You will need a Certificate of Eligibility (COE) from the VA. Your loan officer can help you obtain this.
VA funding fee
Most VA loans require a funding fee, which goes to the VA to keep the program running. The fee is 1.25% to 3.6% of the loan amount, depending on your down payment and whether this is your first VA loan. The fee can be rolled into the loan. Borrowers with service-connected disabilities are exempt.
VA loan limits in 2026
As of 2020, there are no VA loan limits for borrowers with full entitlement. If you have remaining entitlement, the limit is $1,249,125 in 2026. Most borrowers with full entitlement can buy a home at any price the lender will finance.
Talk to a real person
Still have questions? A licensed loan officer from TouchPoint will answer in plain English. No scripts, no runaround.