Today is Veterans Day, and the only honest place to start is with a thank–you. If you’ve served, or you’re still serving, your sacrifice is why the rest of us get to spend our Tuesdays arguing about rate sheets and comp plans. I don’t take that lightly, and neither does my team at OnPoint Mortgage Pro.

I’m Victor Santos, a licensed mortgage broker in Irvine, California (NMLS #888844). OnPoint Mortgage Pro (NMLS #2134550) serves veterans in nine states: California, Colorado, Florida, Idaho, Maryland, New Hampshire, South Carolina, Texas, and Virginia. VA loans are one of the strongest financing tools in the country, and most veterans only ever hear about them from someone who stands to earn a commission on the deal. That’s not the story I want to tell today.

Instead, this is a straight look at what a VA loan actually covers in 2026 — the real benefits, the real numbers, the real rules, and the places the marketing gets it wrong. If you’ve been thinking about buying, refinancing with a VA IRRRL, or you’re just curious about what the benefit really is, this should give you the full picture. And if nothing here applies to you today, forward it to a veteran you know who’s been priced out of the conversation. That’s the thank–you.

What a VA loan actually covers in 2026

Every veteran has heard the pitch: “zero down, no PMI.” That part is true. But the full picture is wider than that, and it’s been expanding since the Blue Water Navy Vietnam Veterans Act of 2019.

Zero down payment, every time

A VA purchase loan allows 100% financing on the lesser of the purchase price or the VA appraisal. You can still put money down — and in some cases you’ll want to, because it lowers your funding fee — but you’re never required to. On a $450,000 purchase, that’s a $22,500 difference compared to the 5% down minimum on a conventional loan, and $94,500 compared to the 21% down most private-mortgage-insurance-free conventional loans require. Subject to lender approval.

No private mortgage insurance, ever

Conventional loans with less than 20% down require private mortgage insurance (PMI). FHA loans require Mortgage Insurance Premium (MIP) for the life of the loan at low down payments. VA loans require neither. Instead, you pay a one–time VA funding fee at closing, which you can roll into the loan. For a lot of veterans, that trade is the biggest monthly savings in the whole program.

No VA loan limit if you have full entitlement

This is the one most veterans don’t know. The Blue Water Navy Vietnam Veterans Act of 2019 took effect January 1, 2020, and it eliminated the VA loan limit for veterans with full first–use entitlement. In 2026, that’s still the rule. If you have full entitlement, VA will guarantee 25% of a loan of any size — your lender’s maximum and the appraised value are the only ceilings.

If you don’t have full entitlement — because you have an active second VA loan, or a prior VA loan default — then you’re bound by your county’s conforming loan limit for the bonus or “second–tier” entitlement calculation. Most lenders will still write the loan; the math just changes. We walk through the entitlement math on every application so you know exactly where you stand.

The 2026 VA funding fee table

The current funding fee rates took effect April 7, 2023, and are unchanged in 2026. Here’s the table as it stands today, per VA.gov:

A big caveat: a large share of veterans owe zero funding fee. Veterans receiving VA compensation for a service–connected disability at any rating — not just 10% or higher — are exempt. So are veterans who would receive compensation but take retirement or active–duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation (D.I.C.), service members with a pre–closing memorandum rating stating they’ll receive future compensation, and active–duty members with Purple Heart documentation on or before closing. If you’re in any of those categories, ask us before you accept a closing disclosure that includes a funding fee line.

A better rate than conventional, most of the time

The VA guaranty gives lenders more confidence in the loan, and that shows up in the rate. As of November 10, 2026 (markets were closed November 11 for Veterans Day), the Mortgage News Daily 30–year VA average was 6.90%, compared to a 30–year conventional average of 7.30%. That’s a 40 basis–point VA advantage. The MND index reflects a top–tier scenario (around 75% LTV with a 780 FICO), so your actual quote will vary — but the direction of the gap holds across most borrower profiles.

The 2026 numbers that matter

Let me put real numbers next to those benefits, because “a VA loan is cheaper” isn’t useful until you can see the monthly payment.

Today’s rates, side by side

Per Mortgage News Daily on 2026–11–10, the national averages were VA 30–year fixed at 6.90% and conventional 30–year fixed at 7.30%. That 40 bps difference, on a $450,000 loan, is roughly $120 per month in interest alone — around $43,000 over the life of a 30–year note. Subject to lender approval. The MND figure assumes top–tier credit (around 780 FICO) and 75% LTV, so a veteran putting zero down with a 700 FICO will see higher pricing than the headline. Your real rate depends on your scenario.

How VA measures whether you can afford the payment

Conventional lending leans heavily on your back–end debt–to–income ratio (DTI). VA does it differently. Per 38 CFR 36.4340(c)(2) and VA Pamphlet 26–7 Chapter 4, VA has no hard DTI cap. 41% is the soft threshold — above that, the lender has to demonstrate that your residual income exceeds the regional minimum by at least 20%, along with a compensating–factor writeup.

Residual income is money left over each month after the mortgage, taxes, insurance, utilities, maintenance allowance, child care, and all other debts. It’s what VA considers “the amount a family actually has to live on.” Here’s a sample from the West region table (per VA Pamphlet 26–7 Chapter 4), for loan amounts greater than $80,000:

Those numbers are unchanged for years and are consistent across every VA lender’s underwriting. The practical effect: VA can approve a veteran whose conventional DTI would get declined, as long as there’s real money left over at month’s end. That’s the whole philosophical difference. VA cares about whether you can live, not just whether a ratio fits inside a box.

Real–dollar funding fee examples

On a $450,000 purchase, financed at 100% by a first–use veteran with no disability waiver, the funding fee is 2.15% — $9,675. Rolled into the loan at 6.90%, that adds about $64 per month. On a $450,000 subsequent–use purchase with zero down, the fee jumps to 3.30% ($14,850) — worth putting at least 5% down to drop the fee to 1.50% ($6,750) if you have the cash. On an IRRRL streamline refi, the fee is just 0.50% — $2,250 on a $450,000 balance — and even that is waived for most veterans with disability compensation. Subject to lender approval.

VA versus conventional: the real math on a $450,000 purchase

Here’s a side–by–side on a $450,000 single–family home, using today’s MND averages (markets closed 11/11, prior day shown). Subject to lender approval and your individual credit profile.

Read that carefully. Even against a 5%–down conventional loan with PMI, the VA loan is about $84 per month cheaper and keeps $22,500 in the veteran’s pocket. Against a 20%–down conventional loan, the monthly is higher — but the veteran didn’t have to come up with $90,000 to get there. The honest comparison isn’t “VA vs 20% down” — it’s “VA vs what the veteran actually has in the bank today.” For most veterans, that’s a lot closer to zero than to $90,000.

You can run your own scenarios using our basic mortgage calculator. The monthly difference compounds over five, seven, and thirty years.

When conventional actually wins

I’ll be the broker that says it: a VA loan isn’t always the right answer. There are three scenarios where conventional beats it.

1. You have 20% or more to put down and no disability waiver. At that point the PMI disappears on conventional, and the VA funding fee becomes a real cost with no offsetting savings. The rate edge usually doesn’t cover the fee.
2. You’re planning to keep the loan less than three years. The funding fee (paid up front or rolled in) takes time to amortize against. If you’re relocating with the military and will sell quickly, run the math.
3. You’re buying a property VA won’t finance. VA has occupancy and condition requirements (owner–occupied, meets Minimum Property Requirements). For a vacation home, pure investment property, or a fixer that won’t pass MPR, you’ll need a different product.

In every other scenario — which is most of them — the VA loan is the strongest option on the table.

The VA IRRRL in today’s rate environment

The VA Interest Rate Reduction Refinance Loan — IRRRL, or “streamline” — is the simplest refinance product in American lending. If you already have a VA loan, you can refinance into a lower rate with almost none of the paperwork of a new purchase.

Here’s what makes an IRRRL different, per VA.gov, VA Circular 26–19–05, and Public Law 115–174 §309 (the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018):

• Typically no appraisal required. This alone saves $600 to $900 and two to four weeks of calendar time.
• Typically no income or employment verification. If you’ve been making your payments, the loan can usually close on the existing credit file.
• Must be an existing VA–backed loan. The IRRRL replaces a VA loan with a VA loan. Can’t use it to refinance a conventional into VA (that’s a VA cash–out).
• Fixed–to–fixed requires a minimum 50 bps rate reduction. This is the net tangible benefit test enshrined in Public Law 115–174.
• Fixed–to–adjustable requires a minimum 200 bps rate reduction. Rare in today’s market.
• 36–month recoupment rule. The closing costs must be recouped by your monthly P&I savings within 36 months. If the math doesn’t work in three years, VA won’t let the loan close.
• 210–day seasoning. Your first payment on the original loan must be at least 210 days before the note date on the new IRRRL.
• Funding fee is 0.50% — and waived entirely for most veterans with a disability rating.

When does an IRRRL make sense in 2026? If you took a VA loan during the 2023 or early 2024 rate spike at 7.5% or higher, you’re a strong candidate right now with VA 30–year averages at 6.90% per MND (your rate will vary). If you locked in 2021 at 3% to 4%, you are not — keep what you have. If you’re between 6.90% and 7.40% today, the math is borderline and depends on your closing costs and how long you’ll stay in the home. We run the recoupment math for free on our VA Streamline page — no appraisal needed to find out whether it pencils.

Things veterans often don’t know about VA loans

This section is the one I wish every veteran got handed on the day they separated.

Your entitlement can be restored

Most veterans think the VA loan benefit is one–and–done. It isn’t. Your entitlement can be restored after you’ve either sold the home and paid off the loan in full, or a qualifying veteran–transferee has assumed your loan and substituted their own entitlement for yours. There’s also a one–time restoration available if you’ve repaid the loan in full but still own the home — a niche but useful tool.

VA loans can be assumed by another veteran — or a non–veteran

Here’s a quiet feature of VA loans that matters a lot in a 7% rate environment: they are assumable. A qualified buyer can take over your existing low–rate VA loan at the original rate and terms. If the buyer is another veteran and substitutes their entitlement, your own entitlement is restored. If the buyer is a non–veteran, they can still assume the loan (subject to lender approval), but your entitlement stays tied up until that loan is paid off.

This feature isn’t marketing — it’s a real differentiator when you go to sell, especially if you’re sitting on a 2021 or 2022–era VA loan at 3% to 4%. A buyer willing to pay for the assumption can take over that rate, which can be worth tens of thousands of dollars in the eventual sale price.

You may be able to have two VA loans at the same time

VA.gov doesn’t use the industry term “second–tier entitlement,” but the concept is right there in the eligibility page: “if you can’t restore prior entitlement, you may still have remaining entitlement to buy or refinance another home.” In practice, PCS moves and relocations frequently leave a veteran with one VA loan in the old market and a need for a second in the new one. The math is specific to the county conforming limit on the second loan and your remaining guaranty, but the door is open. We work this out on the whiteboard for every veteran in that situation.

Surviving spouse eligibility (and its narrower than people think)

Surviving spouses can be eligible for VA home loan benefits, but the rule is narrower than the popular understanding. VA lists two categories: a spouse receiving Dependency and Indemnity Compensation (D.I.C.), or the spouse of an active–duty service member who is missing in action or a prisoner of war. Not every surviving spouse qualifies. If you’re uncertain, we help you pull a COE before you go any further — much better than finding out at week six of a purchase contract.

VA disability compensation can help with DTI

Tax–free income (VA disability compensation, combat–related special comp, and similar) can be grossed up for qualifying purposes on many loans. On a VA loan, this is a meaningful lift when you’re near a DTI threshold, because the lender can present a higher effective income to underwriting. Combined with the lack of a hard DTI cap, this is one of the reasons VA approvals go through for veterans who’d get declined on a conventional file.

VA loan myths, busted

These four come up on almost every veteran purchase we work on.

Myth: VA appraisals kill deals

Reality: the VA appraisal process is stricter than conventional on property condition (the Minimum Property Requirements), but it isn’t slower or wildly off–market on value in the vast majority of cases. The cases where it “kills a deal” are almost always cases where the home actually had an issue — a bad roof, exposed wiring, broken HVAC — and the conventional appraiser would have flagged it too but might have been overruled by a less–careful lender. The MPR process protects the veteran. Think of it as a second set of eyes, not a deal killer.

Myth: Sellers won’t accept VA offers

Reality: in 2025 and 2026, after the NAR settlement reshaped buyer–broker compensation and VA Circular 26–24–14 (2024) authorized reasonable buyer–broker charges on VA purchases, the historical reason sellers pushed back on VA is largely gone. In a balanced or buyer’s market — which much of the country is in right now — your VA offer is competitive. Where it still matters, a good listing agent presentation (and a strong pre–approval from a lender who writes VA regularly) carries the day.

Myth: VA loans take forever to close

Reality: average close times for VA purchases are within a few days of conventional — typically 30 to 45 days, depending on your market and appraiser availability. There’s nothing structural about VA that slows things down. What slows deals is poorly prepared files from lenders who don’t write VA regularly. We write VA every month across our nine states.

Myth: VA loans are only for first–time buyers

Reality: the VA benefit has nothing to do with first–time buyer status. It’s a service–connected benefit you can use repeatedly over a career, restoration after restoration. Second homes (in the owner–occupied sense of a relocation), third homes after restoration, and downsizing in retirement all qualify. The only hard requirement is that you intend to occupy the property as your primary residence.

How to start a VA loan with OnPoint

If any of this made you want to look at your own numbers, here’s how to begin. The first step is always the same: get your Certificate of Eligibility (COE). There are three ways per VA.gov:

1. Online — use VA’s digital request (digital VA Form 26–1880) at va.gov/housing–assistance/home–loans/how–to–request–coe/
2. Through your lender — your lender uses VA Web LGY to pull it electronically. This is the fastest route for most veterans and is typically same–day. We do this for every veteran who starts an application with us, at no cost.
3. By mail — paper VA Form 26–1880 to your VA regional loan center. Slowest option.

Beyond the COE, we’ll typically ask for:

• DD–214 (if separated) or current Leave & Earnings Statement (if active duty)
• Last two years W–2s and pay stubs covering the most recent 30 days
• Two months of bank statements on every account you want counted
• Government–issued photo ID

That’s the full starter kit. We don’t ask for anything we don’t need, and we don’t pull credit until you say go.

OnPoint is a wholesale broker based in Irvine, California, serving veterans in California, Colorado, Florida, Idaho, Maryland, New Hampshire, South Carolina, Texas, and Virginia. Our main VA page has the full product details, and if you’re a first–time buyer veteran, our step–by–step first home guide walks the whole process from COE to keys in hand. For specific state details, see California, Texas, Virginia, Florida, or South Carolina.

Call Victor directly at (877) 870–0007 and you’ll get a real person who writes VA loans every month, not a call center.

Frequently asked questions

What does a VA loan actually cover in 2026?

A VA loan covers 100% of the lesser of the purchase price or appraised value, with no PMI, no loan limit for veterans with full first–use entitlement, and no hard DTI cap. The 2026 funding fee is 2.15% for a first–use purchase with less than 5% down, dropping to 1.25% with 10% or more down, and is waived entirely for veterans with a service–connected disability compensation rating.

How much is the VA funding fee in 2026?

Per VA.gov, the funding fee ranges from 0.50% on an IRRRL streamline refinance to 3.30% on a subsequent–use purchase with less than 5% down. On a first–use purchase with zero down, it is 2.15%. The fee is waived for veterans receiving VA disability compensation (any rating), for surviving spouses receiving D.I.C., and for several other categories. You can roll the fee into the loan.

Can I get a VA loan with no down payment and no PMI?

Yes. Zero down payment and no private mortgage insurance are core VA loan features. There is a one–time funding fee at closing (which you can finance into the loan), and that fee is waived for a large share of veterans with service–connected disability compensation.

Is there a VA loan limit in 2026?

There is no VA loan limit for veterans with full first–use entitlement in 2026. The Blue Water Navy Vietnam Veterans Act of 2019, effective January 1, 2020, eliminated it. Your lender’s own maximum and the appraised value are the ceilings. Veterans without full entitlement (an active second VA loan, prior default) are still bound by county conforming loan limits for the bonus entitlement calculation.

What is a VA IRRRL and when does it make sense?

An IRRRL is the VA Interest Rate Reduction Refinance Loan, often called a VA Streamline. It lets you refinance an existing VA loan into a lower rate with typically no appraisal and no income verification. Per Public Law 115–174 §309 (2018) and VA Circular 26–19–05, you need a minimum 50 bps rate reduction on a fixed–to–fixed refinance, the costs must be recouped within 36 months, and your first payment on the original loan must be at least 210 days before the new note date. It makes sense in 2026 if you took a VA loan in the 2023 or early 2024 rate spike at 7.5% or higher.

Can I use my VA loan benefit more than once?

Yes. VA loan entitlement can be restored after you’ve sold the home and paid off the loan, or after a qualified veteran–transferee assumes your loan and substitutes their entitlement. In some PCS and relocation situations, veterans can carry two active VA loans at once using remaining entitlement. We walk veterans through the specific math on every scenario.

Can surviving spouses get VA loans?

Some surviving spouses can, but the rule is narrower than the popular understanding. VA extends eligibility to spouses receiving Dependency and Indemnity Compensation (D.I.C.), and to spouses of active–duty service members who are missing in action or prisoners of war. Other categories generally do not qualify. If you’re uncertain, we help you request a COE through VA before you start a purchase contract.

How do I get my Certificate of Eligibility?

Three ways, per VA.gov: request it online using the digital VA Form 26–1880, have your lender pull it electronically through VA Web LGY (fastest — often same–day), or mail a paper VA Form 26–1880 to your regional VA loan center. Documents needed vary by status: veterans provide a DD–214, active–duty members provide a statement of service from their command, and surviving spouses provide VA Form 26–1817 or VA Form 21P–534EZ with supporting documents.

One more thank–you

I know a blog post can’t repay what you’ve given. The least I can do is make sure the benefit you earned works the way it’s supposed to work, with numbers you can trust and a broker who’ll pick up the phone. If you’re a veteran considering a purchase or an IRRRL in any of our nine states, call me directly at (877) 870–0007 or start on our VA loans page. For VA’s own authoritative resources, visit va.gov/housing–assistance/home–loans.

Thank you for your service. Today, and every day.

— Victor Santos, Mortgage Broker, OnPoint Mortgage Pro (NMLS #888844 / NMLS #2134550)