VA Loan Requirements Every First-Time Home Buyer Should Know

1. Service Eligibility

This is the foundation. You'll generally qualify with 90 continuous days of active duty during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserve. Surviving spouses of veterans who died in service or from a service-connected condition may also qualify.

2. Certificate of Eligibility (COE)

The COE proves to a lender that you meet the service requirement. Most lenders can pull it electronically in minutes through the VA's automated system — you rarely need to request it yourself.

3. Credit and Income

The VA itself doesn't set a minimum credit score. That number comes from individual lenders, and most look for a score in the 580 to 620 range as a practical floor, with better rates available above 660. On the income side, lenders look at your debt-to-income ratio, with 41% commonly cited as a benchmark — though many VA lenders will go higher with strong 'residual income' left over each month.

Residual income is one of the more distinctive parts of VA loan underwriting. Instead of judging you purely on a DTI ceiling, lenders calculate how much money you have left over each month after major expenses, based on family size and region. It's a big reason VA loans remain approvable in situations where a conventional loan with the same DTI would get declined.

4. Shopping Lenders (Not Just Rates)

Not every lender treats VA loans the same way. Some specialize in VA financing and process them quickly with fewer overlays on top of the VA's own guidelines; others rarely handle them and add extra credit or income requirements beyond what the VA actually mandates. Getting quotes from two or three VA-focused lenders — not just whichever bank you already use — often reveals a meaningfully lower rate or fewer fees for the exact same loan.

5. Minimum Property Requirements (MPRs)

The home itself has to meet VA Minimum Property Requirements — it needs to be safe, sound, and sanitary. A VA-approved appraiser checks things like the roof, foundation, heating system, and water supply. This isn't a full home inspection, so getting one separately is still smart.

6. Occupancy Requirement

A VA loan is for a primary residence, not an investment property or vacation home. You're generally expected to move in within 60 days of closing, with limited exceptions for deployed service members.

7. The VA Funding Fee

Instead of monthly mortgage insurance, VA loans charge a one-time funding fee, typically financed into the loan. First-time use with no down payment runs 2.15% of the loan amount for regular military. Veterans with a service-connected disability rating of 10% or higher are exempt entirely, and Purple Heart recipients are exempt regardless of rating.

Step-by-step

1. Confirm eligibility and pull your DD-214. Make sure your service dates and character of discharge support VA loan eligibility.
2. Get your COE through a lender. Most VA-approved lenders pull this electronically at no cost to you.
3. Get pre-approved. Shop with two or three VA-experienced lenders and compare rate and fee estimates, not just the headline rate.
4. Shop with a VA-savvy real estate agent. Reduces friction with sellers unfamiliar with how VA offers and appraisals work.
5. Clear the VA appraisal. Watch for any Minimum Property Requirement issues flagged by the appraiser and resolve them before closing.

Common mistakes to avoid

• Assuming there's a VA-set minimum credit score, then getting declined by an individual lender's stricter standard.
• Shopping for an investment property, which VA loans generally can't be used for.
• Skipping a private home inspection because the VA appraisal already happened.
• Not asking about funding fee exemption if you have any service-connected disability rating.

Frequently asked questions