VA Loan Questions, Answered

Yes. With full VA entitlement there is no down payment required on a VA one-time-close construction loan, and no monthly mortgage insurance.

No. VA does not guarantee loans for vacant land alone. The land can be included when it is part of a home being built for you to live in.

No. Since 2025, VA no longer requires builders to obtain a VA builder ID for guaranteed loans. What matters is an experienced builder with a solid track record (licensed where your state or city requires it). Your lender reviews the builder before closing.

Generally no. VA construction financing requires an experienced, qualified builder.

No. Construction loans use the purchase funding fee chart — 2.15% for first-time use with less than 5% down — and veterans receiving VA disability compensation are exempt.

After final inspections and the final draw, the loan converts from construction to permanent VA financing through a loan modification — there is no second closing. The final draw and modification can take up to 30 days.

Yes. A VA renovation loan finances the purchase and the repairs together, based on the home’s value after the work is complete, so homes that would fail a standard VA appraisal can still be financed.

With full entitlement, no down payment is required when the total loan fits within the as-completed appraised value.

Yes, through a VA renovation cash-out refinance, which replaces your current mortgage and adds repair funds based on the after-repair value.

Generally no. Work must be completed by an experienced, insured contractor under a written scope of work.

Typically no. Luxury items such as pools and hot tubs are generally not eligible. Repairs, updates, energy improvements and accessibility changes are.

Renovation budget limits are set by the lender’s program. The total loan is also limited by the as-completed appraised value.

Yes. With full entitlement, VA purchase loans require no down payment and no monthly mortgage insurance, at any price you qualify for.

Not for borrowers with full entitlement. Limits apply only with partial entitlement, using the 2026 county conforming limit ($832,750 in most counties).

Yes. Sellers can pay all normal closing costs plus up to 4% of the price in concessions, such as paying off debts or prepaying the funding fee.

Yes. Entitlement can be restored after you sell and pay off a VA loan, and in many cases you can have more than one VA loan at a time using remaining entitlement.

Yes, up to four units, as long as you live in one of them as your primary residence.

Most borrowers do, but veterans receiving VA disability compensation, active-duty Purple Heart recipients and qualifying surviving spouses are exempt. The fee can be financed into the loan.

If you already have a VA loan and only want a lower rate or more stable payment, an IRRRL is usually cheaper and faster. If you need cash, want to consolidate debt, or are refinancing out of a non-VA loan, use a VA cash-out refinance.

You must have made 6 consecutive monthly payments and the new loan cannot close until 210 days after your first payment due date.

Yes — through a VA cash-out refinance (Type I if you take no cash). It is a common way to eliminate FHA mortgage insurance.

VA does not require one for an IRRRL (some lenders do). A VA cash-out refinance always requires a VA appraisal.

An Interest Rate Reduction Refinance Loan: a streamlined refinance that replaces an existing VA loan with a new VA loan at a lower rate, or from an adjustable to a fixed rate.

VA does not require one. Some lenders require one anyway as an overlay.

Yes, if it is a VA loan on a home you previously lived in. You certify prior occupancy rather than current occupancy.

At least 0.50% for a fixed-to-fixed refinance and at least 2.00% for fixed-to-adjustable. Moving from an ARM to a fixed rate is allowed even if the fixed rate is higher.

No. IRRRLs do not provide cash back beyond minor closing adjustments. Use a VA cash-out refinance to access equity.

0.5% of the loan amount. Veterans receiving VA disability compensation are exempt.

VA allows up to 100% of the appraised value, including the funding fee. Many lenders set a lower maximum, such as 90%.

Yes. A VA cash-out refinance can replace an FHA loan — often to eliminate FHA monthly mortgage insurance — even if you take no cash.

Yes. A VA cash-out refinance requires that the home be your primary residence.

2.15% on first use and 3.3% on subsequent use. Veterans receiving VA disability compensation are exempt.

Anything legal — debt consolidation, home improvements, tuition, emergencies. The refinance must still provide a net tangible benefit.

Yes. Any buyer who qualifies on credit and income can assume a VA loan with lender approval. The seller’s entitlement stays tied to the loan unless a veteran buyer substitutes theirs.

0.5% of the loan balance being assumed. Veterans receiving VA disability compensation are exempt.

With cash, or with a second mortgage. Some lenders specialize in second liens for assumptions.

Not permanently — but it stays tied up until the assumed loan is paid off, unless a veteran buyer substitutes their entitlement.

Commonly 45 to 120 days, depending on the servicer.