VA Loans · 6 min read
How do VA home loans work in 2026?
July 3, 2026 · Written by Bill Egan, NMLS 7342
Short answer
If you are an eligible Veteran, service member, or qualifying surviving spouse, a VA purchase loan can mean no down payment and no monthly mortgage insurance. There is a funding fee on most loans, and it can be rolled into the amount you borrow. VA guarantees part of the loan; a VA-approved lender still has to underwrite and fund it.
01
Why this comes up
You earned a VA benefit and you are being told it is free money, or that you already used it up. The pain is not knowing whether you can actually buy this house with no down payment.
02
Where this goes wrong
The COE is missing, residual income is short for the household size, or the condo project is not eligible. The offer was written as “easy VA, nothing down.” Processing cannot issue a clear-to-close. The seller thinks VA is the delay. The delay was eligibility that was never checked.
03
What we do about it
VA guarantees part of the loan. We still underwrite and fund it. We start with the Certificate of Eligibility, residual income, occupancy, and — if it is a condo — whether the project works. A prior VA loan is not automatically the end of the benefit.
04
How to get ready
Get your COE before you shop. Bring your LES or award letter, and say whether you already have a VA loan. If the property is a condo, ask about project eligibility on day one. Zero down is real. Residual income and the condition of the house are real too.