VA Loan
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans and surviving spouses. Most borrowers pay a one-time funding fee instead of a down payment and monthly mortgage insurance.
Ralo does not offer VA loans. This page explains how the program works so you can compare it with the loans Ralo does broker.
VA loans by the numbers
| What | Figure | Source |
|---|---|---|
| Who guarantees the loan | The Department of Veterans Affairs; private lenders make the loan | CFPB |
| Funding fee, first use, less than 5% down | 2.15% of the loan amount | U.S. Department of Veterans Affairs |
| Funding fee, after first use, less than 5% down | 3.3% | U.S. Department of Veterans Affairs |
| Funding fee with 5% or more down | 1.5% (1.25% with 10% or more down) | U.S. Department of Veterans Affairs |
| Funding fee on an IRRRL refinance | 0.5% | U.S. Department of Veterans Affairs |
| Who is eligible | Service members, veterans and surviving spouses who meet VA service requirements | U.S. Department of Veterans Affairs |
Last reviewed 2026-10-05
Key Features
- ✓No down payment required for most eligible borrowers
- ✓No monthly mortgage insurance
- ✓A one-time funding fee that can be financed into the loan
- ✓For a home you will live in
- ✓A streamlined refinance, the IRRRL, for existing VA loans
Who Is a VA Loan a Good Fit For?
- Veterans and active-duty service members with a Certificate of Eligibility
- Eligible surviving spouses
- Buyers who want to keep cash rather than make a down payment
- VA borrowers refinancing to a lower rate
Requirements
Credit Score
The VA sets no minimum; each lender sets its own.
Down Payment
None required in most cases. Putting down 5% or more lowers the funding fee.
Debt-to-Income
Reviewed by the lender alongside the VA’s residual-income test.
Pros and Cons
Advantages
- +No down payment
- +No monthly mortgage insurance
- +Funding fee waived for veterans receiving VA disability compensation
- +The benefit can be used more than once
Considerations
- -The funding fee adds to the loan balance
- -A higher fee after first use when putting down less than 5%
- -Primary residences only
- -Eligibility must be documented before closing
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Comparing against a loan Ralo does offer?
Ralo does not offer VA loans. If a conventional or FHA loan is also on your list, see the rate, points and fees side by side.
See Ralo's Loan Types