VA Loans: Zero-Down Financing for Veterans and Active Military

Q: How much is the VA funding fee?

First-time use with less than 5% down is 2.15%. Subsequent use with less than 5% down is 3.30%. 5% or more down drops it to 1.50%, and 10% or more drops it to 1.25%.

Q: What credit score do I need for a VA loan?

The VA sets no minimum credit score, but individual lenders typically require 580-620 or higher.

Q: Can I use a VA loan more than once?

Yes. VA loan benefits can be reused multiple times, and borrowers can have more than one active VA loan depending on remaining entitlement.

VA loans let eligible veterans, active-duty service members, and certain surviving spouses buy a home with no down payment, no private mortgage insurance, and no loan limit for borrowers with full entitlement. The VA doesn't lend the money directly — it guarantees a portion of the loan, which is why private lenders can offer such favorable terms.

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VA Loan Basics

Feature	Detail
Down Payment	0% for borrowers with full entitlement
Private Mortgage Insurance	None, ever
Loan Limit	None for full entitlement — applies to any loan amount a lender approves
Minimum Credit Score	No VA-set minimum; most lenders require 580-620
Funding Fee	0.5%-3.3% depending on use and down payment (waived for many disabled veterans)

No Loan Limit, Even in Higher-Priced Markets: Since 2020, veterans with full entitlement can borrow above the conforming loan limit with $0 down — no VA jumbo math required. This matters in Arizona markets like Scottsdale and Paradise Valley, where home prices regularly exceed the $806,500 conforming limit.

Who Qualifies for a VA Loan

Eligibility generally requires meeting one of these service standards:

90 consecutive days of active service during wartime
181 days of active service during peacetime
6+ years of service in the National Guard or Reserves
Surviving spouse of a service member who died in the line of duty or from a service-connected disability (with some remarriage restrictions)

You'll need a Certificate of Eligibility (COE) to confirm your status — your lender can typically pull this for you directly.

2026 VA Funding Fee Schedule

The funding fee is a one-time charge that funds the VA loan program in place of monthly mortgage insurance. Rates have been locked in since April 2023 and apply through 2031:

Down Payment	First-Time Use	Subsequent Use
Less than 5%	2.15%	3.30%
5% – 9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

The IRRRL streamline refinance funding fee is a flat 0.50%, regardless of prior use.

⚠️ Exemptions Save Real Money: Veterans receiving VA disability compensation (at any rating level), certain surviving spouses, and Purple Heart recipients on active duty are exempt from the funding fee entirely — a savings of several thousand dollars on a typical purchase. Confirm your exemption status on your Certificate of Eligibility.

VA Loan vs. Conventional vs. FHA: The Real Cost Comparison

The funding fee is a one-time cost, while PMI and FHA mortgage insurance are recurring monthly charges. On a typical purchase, the VA loan often becomes the cheapest option within 2-3 years, even after the upfront fee, because there's no ongoing monthly insurance cost eating into the savings.

Types of VA Loans

VA Purchase Loan

The standard program for buying a primary residence — single-family homes, condos in VA-approved developments, and some multi-unit properties — with $0 down for qualified borrowers.

VA IRRRL (Interest Rate Reduction Refinance Loan)

Also called a VA Streamline Refinance. Available only to those who already have a VA loan, this option can skip income verification and appraisal in many cases, with a low 0.5% funding fee. Designed specifically to lower your rate or move from an ARM to a fixed rate.

VA Cash-Out Refinance

Lets qualified homeowners refinance and pull cash from their equity — available even to those without an existing VA loan, refinancing from a conventional or FHA loan into VA financing. Uses the same funding fee schedule as a purchase loan.

Additional Benefits for Disabled Veterans

Funding fee exemption — saves thousands at closing
Specially Adapted Housing (SAH) grants — for veterans with qualifying disabilities to build or modify a home for accessibility (amount adjusts annually — confirm the current figure with the VA, since older published numbers go stale quickly)
Property tax exemptions — vary by state; Arizona offers property tax relief for veterans with service-connected disabilities, so check with the Maricopa County Assessor for current eligibility

Frequently Asked Questions

Is there a loan limit on VA loans? No, not for veterans with full entitlement. Since 2020, eligible borrowers can finance above the conforming loan limit with $0 down, which is especially useful in higher-priced Arizona markets like Scottsdale.

How much is the VA funding fee? For first-time use with less than 5% down, it's 2.15% of the loan amount. Subsequent use with less than 5% down is 3.30%. Putting down 5% or more drops the fee to 1.50%, and 10% or more drops it to 1.25%, regardless of prior use.

Do I have to pay the VA funding fee? Many borrowers don't. Veterans receiving VA disability compensation at any rating level, certain surviving spouses, and Purple Heart recipients on active duty are exempt entirely.

What credit score do I need for a VA loan? The VA itself sets no minimum credit score, but individual lenders typically require 580-620 or higher.

Can I use a VA loan more than once? Yes. VA loan benefits can be reused multiple times throughout your life, and you can even have more than one active VA loan in certain circumstances depending on your remaining entitlement.

Ready to Use Your VA Benefit?

Let's confirm your eligibility, check your funding fee status, and see what you can afford in today's Arizona market.

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