Written by Minnesota's #1 individual VA loan officer — 2024 (RETR data)
Everything you need to use the home loan benefit you earned: who qualifies, how entitlement and loan limits work, what the funding fee costs, and the state-specific details that trip up VA buyers in Minnesota, Wisconsin, and Florida.
The short version
A VA loan is a mortgage made by a private lender and partly guaranteed by the U.S. Department of Veterans Affairs. Because the VA backs part of the loan, lenders can offer terms that most other loans can't: no down payment, no monthly mortgage insurance, and limits on what the buyer can be charged. The VA doesn't lend the money itself. It sets the rules, and the lender makes the loan and decides whether to approve it.
Eligible borrowers with full entitlement can finance up to 100% of the price on a qualifying primary home.
Unlike most low-down-payment loans, VA loans carry no private mortgage insurance.
The VA guaranty lowers the lender's risk, which typically shows up in your rate.
Use it again for future moves, restore it after you sell, or use remaining entitlement while you keep a VA loan.
Sellers can pay your closing costs, plus concessions of up to 4% of the home's reasonable value.
Pay extra or pay the loan off early whenever you like.
Eligibility comes from your service. For anyone serving from August 2, 1990, to today (which covers the Gulf War and post-9/11 eras), these are the VA's minimum service requirements:
| Your situation | Minimum service |
|---|---|
| Currently serving (active duty) | 90 continuous days |
| Veteran (Aug 2, 1990 to present) | 24 continuous months, or the full period you were called or ordered to active duty (at least 90 days). Less if you were discharged for a service-connected disability or a qualifying reason such as hardship or a reduction in force. |
| National Guard | 90 days of non-training Title 10 active duty; or 90 days of active duty including 30 consecutive days (DD214 showing 32 USC activation); or 6 creditable years with an honorable discharge, retirement, or continued service |
| Reserve | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve with an honorable discharge, retirement, or continued service |
| Surviving spouse | Receiving or eligible for certain Dependency and Indemnity Compensation (DIC), or the spouse of a service member who is missing in action or a prisoner of war |
Earlier eras have their own minimums (for example, 90 total days for Vietnam-era service). A discharge that is other than honorable, bad conduct, or dishonorable may not qualify, though a discharge upgrade or a VA character-of-discharge review can sometimes help.
Source: VA.gov, Eligibility for a VA home loan (page last updated Sept 22, 2026). Verified November 13, 2026.
Your COE proves to the lender that you're eligible and shows how much entitlement you have available. There are three ways to get one: online through VA.gov, through your lender (who can often request it directly through the VA's online system), or by mailing VA Form 26-1880. What you'll need depends on your situation:
| If you are… | You'll typically need |
|---|---|
| A Veteran | Your DD214 |
| On active duty | A statement of service signed by your commander, adjutant, or personnel officer (name, SSN, date of birth, entry date, any lost time, and your command) |
| Guard or Reserve, activated | Your DD214 or other discharge documents |
| Current Guard or Reserve, never activated | A signed statement of service that includes your total creditable years |
| Discharged Guard, never activated | NGB Form 22 for each period of service and NGB Form 23 |
| Discharged Reserve, never activated | Your latest annual retirement points statement and proof of honorable service |
| A surviving spouse | The Veteran's DD214 if available; VA Form 26-1817 if you receive DIC, or VA Form 21P-534EZ plus your marriage license and the Veteran's death certificate if you don't |
Don't let the COE hold you up. In most cases I pull it for you from the VA's system once we start your application, and it's usually back within a day or two.
Source: VA.gov, How to request a VA home loan COE (page last updated Sept 22, 2026). Verified November 13, 2026.
Entitlement is the amount the VA will guarantee on your loan. It's what lets a lender give you $0 down. How much you can borrow with no down payment depends on whether your entitlement is full or partly in use.
If you have full entitlement, there is no VA loan limit. You've never used the benefit, or you've used it and had your entitlement restored (for example, by selling the home and paying off the VA loan). You can borrow as much as a lender approves and the appraisal supports, with $0 down.
If some of your entitlement is still in use (say you kept your last home as a rental with its VA loan in place), your remaining entitlement is based on your county's loan limit:
Worked example (Isanti County, MN): The 2026 limit is $832,750, so total entitlement is $208,187.50. With $50,000 already in use, $158,187.50 is available. Four times that is $632,750, the most you could buy with $0 down. A $700,000 home would need 25% of the $67,250 difference, about $16,813 down.
The VA's basic entitlement is $36,000, which covers loans of $144,000 or less. Above $144,000 the VA uses bonus entitlement, which is the formula above. All 87 Minnesota and 72 Wisconsin counties share the $832,750 limit for 2026. In Florida, every county is $832,750 except Monroe County (the Keys) at $990,150.
I've used my own VA loan six times, so entitlement isn't theory to me. If you have a VA loan now and want to buy again without selling, run your numbers below. Then let's confirm them against your actual COE.
Sources: VA.gov, VA home loan limits (page last updated Aug 12, 2025); FHFA 2026 conforming loan limits. Verified November 13, 2026.
If some of your entitlement is still tied up in an existing VA loan, you can often buy again without selling first. Enter your numbers to see your remaining entitlement, the most you can spend with $0 down, and any down payment you'd need above that.
Entitlement details
Tony is licensed in Minnesota, Wisconsin, and Florida, so he can't originate loans in this state. Moving to one of those three? He'd be glad to help you plan the purchase.
Estimate for educational purposes only. Not a loan approval, commitment to lend, or VA determination of eligibility; your actual entitlement is shown on your Certificate of Eligibility. Remaining entitlement uses FHFA's 2026 one-unit conforming loan limits for every U.S. county. Veterans with full entitlement have no VA loan limit. VA loans require owner occupancy and are subject to credit, income, and appraisal approval. Tony Zerwas, NMLS #2402427, licensed in Minnesota, Wisconsin, and Florida.
The funding fee is a one-time charge paid to the VA that keeps the program running. It's a percentage of the loan amount (not the price), and you can pay it at closing or roll it into the loan. For a purchase or construction loan:
| Your down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Other VA loans | Funding fee |
|---|---|
| Cash-out refinance | 2.15% first use, 3.3% after first use |
| IRRRL (streamline refinance) | 0.5% |
| Manufactured home (not permanently affixed) | 1% |
| Loan assumption | 0.5% |
Example: On a $350,000 home with $0 down, the fee is 2.15% on your first VA loan ($7,525) or 3.3% on a later one ($11,550). Put 5% down, and the fee drops to 1.5% of the smaller loan.
You pay no funding fee if you:
The exemption is the first thing I check. Plenty of Veterans don't realize their disability rating wipes out the fee entirely. On a typical loan, that's thousands of dollars.
Source: VA.gov, VA funding fee and loan closing costs (rates effective April 7, 2023; page last updated Oct 5, 2026). Verified November 13, 2026.
The VA states plainly that it doesn't require a minimum credit score, but that some lenders do. You still have to meet credit, income, and occupancy standards from both the VA and your lender. In practice, the minimum score you face depends on which lender you use.
That's where working with a broker matters. A bank can only offer its own minimum. As an independent broker, I can match your file to a lender whose standards fit your situation, whether that's a recent credit event, a thin credit history, or a score that's a few points short.
Source: VA.gov, VA home loan limits and eligibility. Verified November 13, 2026.
Buyers and sellers negotiate who pays most closing costs on a VA loan: the origination fee, discount points, credit report, VA appraisal fee, title insurance, recording fees, hazard insurance, and taxes. Two VA rules shape that negotiation:
Source: VA.gov, VA funding fee and loan closing costs (page last updated Oct 5, 2026). Verified November 13, 2026.
Same federal benefit, three very different states. The biggest differences are each state's property tax break for disabled Veterans and the local property issues that can trip up an appraisal.
MN Dept. of Revenue (updated Sept 9, 2026)
These tax breaks are separate from your VA loan, but they change what you can afford. A Wisconsin Veteran rated 100% may owe no property tax at all, which can lower the monthly payment we qualify you for. I make sure every Veteran I work with knows which break applies before we pick a price range.
| Myth | Fact |
|---|---|
| "You can only use a VA loan once." | The benefit is reusable. You can restore entitlement after you sell and pay off a VA loan, and you may be able to hold more than one VA loan at a time. |
| "VA loans have a maximum loan amount." | Since January 1, 2020, there is no VA loan limit for borrowers with full entitlement. County limits only matter when entitlement is still in use. |
| "You need great credit." | The VA doesn't set a minimum credit score. Lenders do, and their minimums vary. |
| "Everyone pays the funding fee." | Veterans receiving VA disability compensation, and several other groups, are exempt. |
| "Sellers can't help with closing costs." | Sellers can pay your normal closing costs, plus concessions of up to 4% of the home's reasonable value. |
Sources: VA.gov loan limits and funding fee and closing costs. Verified November 13, 2026.
Buy your primary home with no down payment and no PMI, whether it's your first place or your next one.
Already have a VA loan? Lower your rate with less paperwork and often no appraisal. IRRRL guide →
Tap your home's equity, or refinance a non-VA loan into a VA loan.
Answered by Tony Zerwas, U.S. Air Force Veteran and VA loan specialist · NMLS #2402427 · Last reviewed November 13, 2026
Yes. For eligible borrowers with full entitlement, VA loans allow up to 100% financing: $0 down on an eligible primary residence, subject to lender approval and the appraisal.
In my experience, the hardest part for most Veterans isn't qualifying. It's believing $0 down is real. It is, and I'll put the numbers in front of you in writing.
No. VA loans don't require monthly private mortgage insurance (PMI). On a conventional or FHA loan with a low down payment, PMI or MIP can add a noticeable amount to your monthly payment. The VA program removes that cost entirely.
For a lot of my Minnesota buyers, dropping PMI is exactly what makes the monthly payment work on the house they actually want.
A one-time fee paid to the VA. For a purchase with less than 5% down, it's 2.15% of the loan on first use and 3.3% after first use. It drops to 1.5% with 5% down and 1.25% with 10% down. It can be rolled into the loan, and Veterans receiving VA disability compensation are exempt. Full funding fee table ↑
I've worked with plenty of Veterans who didn't realize their disability rating made them exempt from the fee entirely. It's one of the first things I check.
Yes. The benefit is reusable. Depending on your remaining entitlement, you may be able to hold more than one VA loan at a time, or fully restore your entitlement after you sell a home and pay off the prior VA loan. Run the entitlement calculator ↑
I've bought six homes with my own VA loan, so this one's personal. The benefit doesn't vanish after one use.
Online, through your lender, or by mail with VA Form 26-1880. Veterans typically need a DD214; active-duty members need a signed statement of service. Documents by situation ↑
In practice I pull most COEs within a day or two, so it rarely slows anything down.
Often, yes. VA loans can be used for properties with up to four units, as long as you live in one of them as your primary residence. It's a powerful way to offset your mortgage with rental income.
I've helped Veterans house-hack a duplex here, living in one unit while renters cover a big chunk of the mortgage. It's one of the most underused parts of the benefit.
Yes. A lot of homes around Isanti, Cambridge, and greater Minnesota run on a private well and septic, and VA financing handles them all the time. The water has to be safe and the systems functional, so expect a water-quality test and confirmation that the septic is working. I know the local inspectors and what's required, so we line this up early instead of letting it surprise us a week before closing.
Usually, yes, with a caveat. The property has to be primarily residential (not an income-producing farm), and the value should come mostly from the home and site rather than outbuildings, livestock, or crops. Larger parcels around east-central Minnesota are very doable when the appraisal supports them as residential. Send me the listing and I'll tell you quickly whether it's a fit.
Yes, as long as it will be your primary residence. The VA benefit is built for the home you actually live in, not a second home or seasonal cabin. If you're moving to the lake full-time, a VA loan can absolutely work. If it's a weekend place, we'd look at a conventional or second-home option instead.
Yes. Minnesota's Disabled Veterans' Homestead Market Value Exclusion removes $150,000 of market value for a 70%+ service-connected rating, and $300,000 for 100% permanent and total. Certain surviving spouses and VA-approved primary family caregivers can qualify too. Apply with your county assessor by December 31 for the following year's taxes. Compare MN, WI & FL ↑
They do when the offer is packaged right. There's an old myth that VA loans are slow or fall apart. In reality, a VA buyer with a strong pre-approval and a lender who closes on time is every bit as competitive as a conventional buyer. A big part of my job is making your offer look as solid as it is.
Yes, and I hear this more than you'd think. Most bad VA experiences come down to a loan officer who didn't really know the program, went quiet for days, or sprung surprises right before closing. I keep you in the loop, request your COE early, and flag the funding fee, appraisal, and any well or septic issues up front, so there are no last-minute shocks.
Every rule and figure in this guide comes from an official source. Each one was checked on November 13, 2026, and this guide is reviewed whenever the VA, FHFA, or a state updates its rules.
VA loans are a federal benefit administered by the U.S. Department of Veterans Affairs. Mission Home Loans is not affiliated with or endorsed by the VA or any government agency. Property tax benefits are administered by each state and county; confirm eligibility with your county assessor, property appraiser, or Veterans service officer.
Whether you're buying your first home or your next one, I'll walk you through your real VA numbers step by step. No pressure, just answers.