10 Essential VA Loan Facts Every Veteran Should Know in 2025
6 minute read
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July 10, 2025

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VA home loans continue to be one of the most valuable benefits available to veterans, active-duty service members, and eligible surviving spouses. 

Backed by the U.S. Department of Veterans Affairs, these loans make homeownership more accessible and affordable for veterans. 

Yet, many eligible borrowers still aren’t taking advantage of this powerful benefit. Here are 10 updated VA loan facts to help you make informed decisions about your next home purchase or refinance in 2025.

Get a VA loan with GO Mortgage.

1. No down payment required (in most cases)

One of the most compelling advantages of VA loans is that eligible borrowers can purchase a home with no down payment

As long as you have full entitlement and your loan exceeds $144,000, there’s no requirement to put money down. 

This stands in contrast to conventional loans, which often require a down payment of at least 5%, and FHA loans, which require a down payment of 3.5%. For military buyers who might not have years to save, this is a game-changer.

2. No private mortgage insurance (PMI)

VA loans do not require PMI, even with no down payment. 

This contrasts with most other low-down-payment loans, which typically require mortgage insurance that adds hundreds of dollars to monthly payments. 

By avoiding PMI, VA borrowers can significantly increase their buying power.

3. Competitive interest rates

Because VA loans are government-backed, lenders are often more confident in offering lower-than-average interest rates

VA rates are consistently lower than conventional mortgage rates, saving borrowers thousands over the life of their loan. 

Additionally, interest rate options include both fixed-rate and adjustable-rate VA mortgages, depending on your long-term goals. 

Fixed rates offer stability, while ARMs may start with lower payments—ideal for short-term stays.

4. Flexible credit guidelines

The VA does not set a minimum credit score requirement, though individual lenders typically do. Most lenders require a score of at least 580 to 620

VA loans also tend to be more forgiving for borrowers with past financial issues, such as bankruptcy or foreclosure, making it easier for them to re-enter the housing market.

Borrowers who have undergone a Chapter 7 bankruptcy can generally qualify two years after discharge. 

In comparison, those with a foreclosure on record may qualify within two years, often faster than with conventional loans.

5. Generous debt-to-income ratios

VA loans are among the most flexible when it comes to debt-to-income (DTI) ratios

While many lenders prefer to see a DTI under 41%, it’s possible to get approved with a higher DTI if you have strong credit or residual income. This helps stretch purchasing power for many military families.

VA lenders often rely on residual income guidelines, which assess the borrower’s remaining income after major expenses to ensure long-term financial stability and affordability. 

This borrower-focused evaluation can open doors that traditional DTI calculations might close.

6. Limited closing costs and seller concessions

VA loans limit what buyers can be charged in closing costs, making transactions more affordable.

Sellers are allowed to pay all of a buyer’s closing costs and up to 4% in concessions toward other expenses such as prepaids, VA funding fee, and even paying off collections. This can help reduce your out-of-pocket expenses at closing.

Common allowable seller concessions include:

  • Prepayment of property taxes and homeowners’ insurance
  • Interest rate buydowns
  • Paying off a buyer’s credit cards or judgments
  • Providing appliances or gift cards

7. VA loans are a lifelong benefit

There is no cap on how many times you can use your VA loan benefit. 

As long as you meet the entitlement requirements and lender qualifications, you can reuse your VA loan multiple times throughout your life—even if you’ve previously defaulted.

Basic eligibility requirements

  • 90 days of active duty during wartime, OR
  • 181 days during peacetime, OR
  • 6 years in the National Guard or Reserves, OR
  • You’re a surviving spouse of a service member who died in the line of duty or from a service-connected disability.

8. Surviving spouses may qualify

Eligible surviving spouses can qualify for VA loans. 

This includes those who:

  • Have not remarried after their spouse’s service-connected death,
  • Are the spouse of a veteran who was MIA or a POW,
  • Or whose spouse was totally disabled and later passed (in certain cases).

These provisions ensure that the families of fallen heroes continue to receive support throughout their journey to homeownership.

9. Multiple VA loan programs available

The VA loan program isn’t just for buying homes. 

There are several types of VA loans tailored to specific financial needs:

  • VA Purchase Loans: Used to buy a primary residence with no down payment or PMI.
  • VA Jumbo Loans: For homes exceeding standard conforming loan limits. May require a down payment, but with far better terms than conventional jumbos.
  • VA Cash-Out Refinance: Refinance up to 90% of your home’s value and convert equity into cash.
  • VA IRRRL (Interest Rate Reduction Refinance Loan): A streamlined refinance for existing VA loans. No appraisal or income verification needed. Just certify previous occupancy.
  • VA Single-Close Construction Loans: These one-time close loans combine land purchase, construction financing, and the permanent VA mortgage into a single transaction.

Note: All refinance transactions must follow the 2025 VA loan caps and updated lending rules. Be sure to work with a VA-approved lender, such as GO Mortgage.

10. More than just buying a home

VA loans can be used for much more than simply purchasing a house:

  • Buy or build a single-family home or condo
  • Simultaneously purchase and renovate a property
  • Refinance a current mortgage (VA or non-VA)
  • Enhance energy efficiency with solar, insulation, and windows.
  • Buy and improve a manufactured home and lot
  • Install accessibility modifications for veterans with disabilities

Just ensure the property meets Minimum Property Requirements (MPRs) to guarantee it’s safe, structurally sound, and sanitary. MPRs include adequate heating and cooling, a sufficient water supply, a sound roof condition, and more.

Do you qualify for a VA loan?

If you’re a veteran, active service member, reservist, or surviving spouse, now is the time to explore your VA loan eligibility. 

With no down payment, no PMI, and low interest rates, this benefit can open doors to homeownership you never thought possible.

Don’t leave your benefits on the table. Check your VA loan eligibility and start the process today.

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