What is a VA Loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. It is not issued by the VA directly. Instead, the VA guarantees a portion of the loan, which allows private lenders to offer terms that are impossible to match with any other mortgage product.
The three headline benefits make the VA loan the single best mortgage available in the United States:
- Zero down payment. You can finance 100% of the home's value. No other conventional loan product offers this without income restrictions or geographic limitations.
- No private mortgage insurance (PMI). Conventional borrowers who put less than 20% down pay PMI, which typically adds $100 to $300 per month. VA borrowers never pay PMI, regardless of down payment amount.
- Competitive interest rates. Because the VA guarantee reduces lender risk, VA loan rates are consistently 0.25% to 0.50% lower than conventional rates. On a $400,000 loan, that rate difference saves roughly $60 to $120 per month.
Additional benefits include no prepayment penalties, limited closing costs (the VA restricts what lenders can charge), and more flexible credit requirements than conventional or FHA loans. The VA also offers foreclosure avoidance assistance if you ever struggle to make payments.
Virginia is one of the best states to use a VA loan. With over 780,000 veterans, 130,000 active-duty service members, and hundreds of thousands of DoD civilian employees, the state has a deep network of VA-experienced lenders, real estate agents, and title companies who understand the program inside and out.
Eligibility Requirements
VA loan eligibility is based on your service history. You qualify if you meet one of the following criteria:
Active Duty Service Members
You are eligible after 90 continuous days of active duty service during wartime, or 181 continuous days during peacetime. If you are currently serving, you are eligible after 90 continuous days of service.
Veterans
You are eligible if you served at least 90 days during wartime or 181 days during peacetime and were discharged under conditions other than dishonorable. For service members who entered after September 7, 1980, you generally need at least 24 months of continuous active duty or the full period for which you were called to active duty.
National Guard and Reserve Members
Guard and Reserve members qualify after six years of service in the Selected Reserve or National Guard, provided they served under an honorable discharge. If you were activated for federal active duty, the active-duty service requirements above may apply instead, potentially qualifying you sooner.
Surviving Spouses
The un-remarried spouse of a veteran who died in service or from a service-connected disability is eligible for VA loan benefits. Surviving spouses who remarried after age 57 and after December 16, 2003, may also be eligible.
Other Qualifying Service
- Cadets at the United States Military, Air Force, or Coast Guard Academy
- Officers of the National Oceanic and Atmospheric Administration (NOAA)
- Officers of the Public Health Service
- Certain merchant mariners with World War II service
VA Loan Limits in Virginia
Since the Blue Water Navy Vietnam Veterans Act took effect in 2020, there are no loan limits for veterans with full entitlement. If you have never used your VA benefit before (or you have fully restored it), you can borrow as much as a lender will approve with zero down payment.
However, if you have a VA loan currently outstanding or have previously defaulted on a VA loan, you may have partial entitlement. In that case, the county-level conforming loan limits determine how much you can borrow at zero down.
| Virginia Region / County | 2026 Conforming Limit | Notes |
|---|---|---|
| Northern Virginia (Arlington, Fairfax, Loudoun, Prince William) | $1,149,825 | High-cost area designation |
| Richmond Metro (Henrico, Chesterfield, Hanover) | $766,550 | Standard conforming limit |
| Hampton Roads (Norfolk, Virginia Beach, Newport News) | $766,550 | Standard conforming limit |
| Charlottesville / Albemarle | $766,550 | Standard conforming limit |
| Roanoke / Southwest Virginia | $766,550 | Standard conforming limit |
These limits only apply to borrowers with partial entitlement. If you have full entitlement, there is no cap on the amount you can borrow at zero down. Your lender will still apply their own internal limits based on your income and creditworthiness.
VA Funding Fee Breakdown
The VA funding fee is a one-time charge that helps offset the cost of the VA loan program to taxpayers. It can be paid upfront at closing or rolled into the loan balance. The amount depends on several factors: whether it is your first time using the benefit, how much you put down, and whether you are active duty or in the Reserves/Guard.
Purchase Loans: First-Time Use
| Down Payment | Active Duty / Veteran | Guard / Reserve |
|---|---|---|
| 0% to 4.99% | 2.15% | 2.40% |
| 5% to 9.99% | 1.50% | 1.75% |
| 10% or more | 1.25% | 1.50% |
Purchase Loans: Subsequent Use
| Down Payment | Active Duty / Veteran | Guard / Reserve |
|---|---|---|
| 0% to 4.99% | 3.30% | 3.30% |
| 5% to 9.99% | 1.50% | 1.75% |
| 10% or more | 1.25% | 1.50% |
Funding Fee Exemptions
The following groups are exempt from paying the VA funding fee entirely:
- Veterans with a service-connected disability rating of 10% or higher
- Purple Heart recipients currently on active duty
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC) benefits
- Veterans entitled to receive compensation for a service-connected disability (even if receiving retirement or active-duty pay instead)
On a $400,000 home with zero down and first-time use, the funding fee would be $8,600 (2.15%). That is a significant amount, but it replaces the PMI that conventional borrowers pay monthly. When you compare the one-time fee to years of PMI payments, the VA loan still wins by a wide margin.
How to Get Your Certificate of Eligibility (COE)
Your Certificate of Eligibility (COE) proves to lenders that you qualify for a VA loan. There are three ways to obtain it:
Option 1: Through Your Lender (Fastest)
Most VA-approved lenders can pull your COE electronically through the VA's Web LGY system. This is instant in many cases and is the fastest method. Simply provide your lender with your Social Security number and basic service information.
Option 2: Online Through VA.gov
Log in to your VA.gov account and navigate to the housing assistance section. You can request your COE online, and it is often available immediately if your service records are in the VA system.
Option 3: By Mail (Slowest)
Submit VA Form 26-1880 along with your DD-214 (or current statement of service for active duty) to the VA Eligibility Center in Winston-Salem, NC. This method takes 4 to 6 weeks and is only recommended if the electronic methods are unavailable.
Documents You Will Need
- Veterans: DD-214 (Member 4 copy showing character of discharge)
- Active duty: Statement of service signed by your commander, adjutant, or personnel officer showing your name, SSN, date of birth, entry date, and any lost time
- Guard/Reserve: NGB Form 22 (for Guard) or a points statement and proof of honorable service
- Surviving spouses: Veteran's DD-214, marriage certificate, and death certificate
VA Loan vs Conventional vs FHA
Understanding how the VA loan stacks up against other common mortgage products helps you see why it is so valuable. Here is a side-by-side comparison for a $400,000 Virginia home purchase:
| Feature | VA Loan | Conventional | FHA |
|---|---|---|---|
| Down Payment | 0% | 3% to 20% | 3.5% |
| Mortgage Insurance | None (ever) | PMI until 20% equity | MIP for life of loan |
| Upfront Fee | 2.15% funding fee (first use) | None | 1.75% UFMIP |
| Credit Score Minimum | No VA minimum (lenders typically want 620+) | 620+ | 580+ (3.5% down) |
| Interest Rate | Lowest (0.25-0.50% below conventional) | Market rate | Slightly below conventional |
| Cash Needed at Closing ($400K home) | $4,000 to $8,000 (closing costs only) | $20,000 to $92,000 | $21,000 to $26,000 |
| Seller Concessions Allowed | Up to 4% of purchase price | 3% to 9% (depends on down payment) | Up to 6% |
| Property Requirements | Must meet VA Minimum Property Requirements | Standard appraisal | Must meet FHA standards |
The VA loan wins on virtually every financial metric. The only trade-off is the VA funding fee and the VA appraisal requirements, which can be stricter than conventional appraisals. For most Virginia military buyers, the VA loan is the clear best choice.
Connect with a VA Loan Specialist
Our team works with Virginia military buyers every day. Let us help you maximize your benefit.
Virginia Military Bases and Nearby Housing
Virginia is home to some of the largest and most important military installations in the country. Where you are stationed will heavily influence your housing options and price range. Here is what to expect near each major base:
Naval Station Norfolk / Joint Expeditionary Base Little Creek
The world's largest naval station sits in the Hampton Roads metro. Popular housing areas include Virginia Beach (especially the Kempsville and Great Neck corridors), Chesapeake, and Norfolk's Ghent neighborhood. Median home prices in the area range from $280,000 to $380,000, making it one of the most affordable duty stations on the East Coast. The commute from Virginia Beach to the base is typically 20 to 40 minutes depending on the tunnel traffic.
Marine Corps Base Quantico
Located in Prince William County along I-95, Quantico is about 35 miles south of Washington, D.C. Housing in Stafford, Woodbridge, and Dale City is popular with Quantico families. Median prices range from $400,000 to $550,000. Stafford County offers newer construction and larger lots at slightly lower prices than Prince William County. The VRE commuter train has a Quantico station, making D.C. commutes feasible without a car.
Joint Base Langley-Eustis
Spanning Hampton and Newport News, JBLE service members typically live in Hampton, Newport News, Yorktown, or Williamsburg. This is one of the most affordable areas in Virginia for military families, with median home prices between $250,000 and $340,000. The Yorktown and Williamsburg areas offer excellent schools and a suburban feel.
Fort Liberty (formerly Fort Bragg, NC border region)
While Fort Liberty is technically in North Carolina, many service members and families live just across the Virginia border in the southern Virginia communities of Danville, South Boston, and Martinsville. These areas offer some of the lowest housing costs in Virginia, with median prices below $200,000. Virginia's schools and quality of life often draw families northward across the state line.
The Pentagon / Arlington / Fort Myer
Pentagon-based personnel face the highest housing costs in Virginia. Arlington County's median home price exceeds $700,000, and nearby Alexandria is similar. More affordable options include Springfield, Burke, and Lorton in Fairfax County (median $550,000 to $650,000) or Woodbridge in Prince William County. Metro access is critical for Pentagon commuters. Properties within walking distance of a Metro station command a premium but eliminate the parking headache.
Step-by-Step: Getting a VA Loan in Virginia
Confirm Your Eligibility
Review the service requirements above. If you are unsure, contact the VA at 1-877-827-3702 or visit VA.gov.
Obtain Your Certificate of Eligibility (COE)
Use one of the three methods described above. The fastest route is through your lender's electronic system.
Get Pre-Approved with a VA Lender
Choose a lender experienced with VA loans in Virginia. Not all lenders handle VA loans well. Look for one that processes at least 50 to 100 VA loans per year. Get quotes from at least two lenders to compare rates and closing costs.
Find a VA-Savvy Real Estate Agent
Work with an agent who understands VA loan requirements, including the VA Minimum Property Requirements (MPRs) that the appraiser will check. An experienced agent will steer you away from properties that are likely to fail the VA appraisal.
Search for Homes and Make an Offer
Focus on homes that meet VA MPRs: safe, structurally sound, and sanitary. The property must be your primary residence. Your agent will help you write a competitive offer and negotiate on your behalf.
Complete the VA Appraisal
The VA assigns an independent appraiser from their approved panel. The appraiser verifies the home meets MPRs and provides a value opinion. If the appraisal comes in low, you can negotiate with the seller, request a Reconsideration of Value, or cover the difference out of pocket.
Clear Underwriting Conditions
Your lender may request additional documents such as updated pay stubs, bank statements, or letters of explanation. Respond to these requests immediately to keep your closing on track.
Close on Your New Home
Virginia is a "wet settlement" state, meaning all funds must be available at closing. You will sign your final documents with a settlement attorney, pay your closing costs (minus any seller concessions), and receive your keys. The VA funding fee is typically rolled into the loan, so you do not need cash for it.
Frequently Asked Questions
Can I use a VA loan more than once?
Yes. VA loan entitlement can be reused. You can have more than one VA loan at a time if you have remaining entitlement, or you can restore full entitlement after selling a previous VA-financed home and paying off the loan. This is especially common for military families who PCS multiple times during a career.
Is there a VA loan limit in Virginia?
For veterans with full entitlement, there is no loan limit as of 2020. You can borrow as much as a lender will approve with zero down. Veterans with partial entitlement still follow county-level conforming loan limits, which range from $766,550 to $1,149,825 in Virginia depending on the county.
Do I have to pay the VA funding fee?
Most borrowers pay the VA funding fee, but it is waived for veterans with a service-connected disability rating of 10% or higher, Purple Heart recipients on active duty, and surviving spouses receiving DIC benefits. The fee can be paid upfront or rolled into the loan balance.
Can I use a VA loan to buy a condo in Virginia?
Yes, but the condo project must be on the VA-approved condo list. Many Virginia condo communities are already approved, especially in Northern Virginia and Hampton Roads. If yours is not, your lender can submit a project approval request, though this adds 2 to 4 weeks to the process.
How long does a VA loan take to close in Virginia?
VA loans typically close in 30 to 45 days in Virginia, similar to conventional loans. The VA appraisal process can sometimes add a few days compared to a standard appraisal, but experienced VA lenders in Virginia keep timelines competitive. Choose a lender with a strong VA processing team to avoid delays.
Can my spouse use my VA loan benefit?
Your spouse cannot use your benefit independently while you are alive. However, you can apply jointly, and your spouse's income can be counted to help you qualify. Surviving spouses of veterans who died in service or from a service-connected disability may have their own VA loan eligibility.
Related Guides
Ready to Use Your VA Loan Benefit?
Talk to a Settle military housing specialist who works with VA buyers across Virginia every day. We know the bases, the lenders, and the neighborhoods that work best for military families.