Quick Summary
- The four most common home loan types are conventional, FHA, VA and USDA loans.
- VA loans let eligible service members, veterans and some surviving spouses buy with no down payment and no monthly mortgage insurance.
- Most VA borrowers pay a one-time VA funding fee (2.15% of the loan on a first-use purchase with less than 5% down); veterans receiving VA disability compensation are generally exempt.
- Since 2020, borrowers with full VA entitlement have no VA loan limit, which matters in higher-priced Northern Virginia markets.
- FHA loans allow 3.5% down with lower credit scores; conventional loans can go as low as 3% down; USDA loans cover eligible rural areas only.
In this post: VA loans | Types of VA loans | Conventional | FHA | USDA | Side-by-side comparison | FAQ | Sources
VA Loans: The Strongest Option for Many Military Buyers
VA home loans are guaranteed by the U.S. Department of Veterans Affairs and made by private lenders. Because the VA guarantees part of the loan, lenders can offer terms that are hard to match elsewhere. Northern Virginia has one of the largest military and veteran populations in the country, so VA financing comes up constantly in our market.
Who is eligible?
Eligibility is based on service. In general it includes active-duty service members, veterans who meet minimum service requirements, many National Guard and Reserve members, and some surviving spouses. Your lender requests a Certificate of Eligibility (COE) from the VA to confirm it.
Key VA loan benefits
- No down payment for eligible borrowers with full entitlement, as long as the price does not exceed the appraised value.
- No monthly mortgage insurance, unlike FHA loans or conventional loans with less than 20% down.
- No VA loan limit with full entitlement since 2020. Lenders still apply their own income and credit standards.
- Limits on certain closing costs charged to the veteran, and sellers can contribute toward closing costs and concessions within VA rules.
- Assumable by a qualified buyer with lender and VA approval, which can be valuable when rates rise.
The VA funding fee
Most borrowers pay a one-time funding fee, which can be financed into the loan. For a purchase loan the current schedule is:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Veterans receiving VA compensation for a service-connected disability, and certain other borrowers, are generally exempt. Confirm current figures on VA.gov before you rely on them.
Types of VA Loans
- VA purchase loan: the standard loan to buy a primary residence, including condos in VA-approved projects.
- VA cash-out refinance: refinance any existing loan into a VA loan and take cash out, subject to VA rules.
- Interest Rate Reduction Refinance Loan (IRRRL): a streamlined refinance from an existing VA loan to a lower rate.
- Native American Direct Loan (NADL): a VA direct loan for eligible Native American veterans or veterans married to Native Americans, for homes on federal trust land.
- Adapted housing grants: not loans, but grants that help eligible veterans with certain service-connected disabilities buy, build or modify a home.
VA loans and condos
For a condo, the building generally needs to be on the VA’s approved condominium list. If you are condo shopping, check approval early. Our posts on why condo issues affect your mortgage and condo documents to review explain why.
Conventional Loans
Conventional loans are not insured by a government agency. Many follow Fannie Mae and Freddie Mac guidelines. Some programs allow as little as 3% down for qualified buyers; with less than 20% down you will pay private mortgage insurance, which can usually be removed later. Loans above the conforming loan limit set each year by the FHFA are called jumbo loans and follow stricter rules.
FHA Loans
FHA loans are insured by the Federal Housing Administration. Borrowers with a credit score of 580 or higher can put down as little as 3.5%. FHA loans carry an upfront mortgage insurance premium plus annual premiums, and FHA sets county-by-county loan limits.
USDA Loans
USDA Rural Development loans can offer no-down-payment financing for buyers who meet income limits in eligible areas. Most of Fairfax and Arlington is not eligible, but some outlying areas of the region may be. Check a specific address on the USDA eligibility map.
Side-by-Side Comparison
| Loan | Minimum down | Mortgage insurance | Best fit |
|---|---|---|---|
| VA | 0% (eligible borrowers) | None monthly; one-time funding fee unless exempt | Eligible service members, veterans, some surviving spouses |
| Conventional | 3% to 5% for many programs | PMI below 20% down, removable | Buyers with solid credit |
| FHA | 3.5% (580+ score) | Upfront plus annual premium | Buyers rebuilding credit or with smaller down payments |
| USDA | 0% in eligible areas | Upfront and annual guarantee fees | Income-eligible buyers in eligible rural areas |
FAQ
What are the types of VA loans?
The main ones are the VA purchase loan, the VA cash-out refinance, the Interest Rate Reduction Refinance Loan (IRRRL) and the Native American Direct Loan. Adapted housing grants are a related benefit for eligible veterans with certain disabilities.
Do VA loans have a limit in Northern Virginia?
Borrowers with full entitlement have no VA loan limit. If part of your entitlement is tied up in another VA loan, county limits affect how much you can borrow with no down payment.
Can I use a VA loan more than once?
Yes. Entitlement can be restored after a VA loan is paid off, and in some cases you can have more than one VA loan at a time. The funding fee is higher after first use unless you are exempt.
Is a VA loan better than FHA?
For eligible borrowers, often yes: no down payment and no monthly mortgage insurance. Compare total costs with your lender, especially if you are exempt from the funding fee.
Sources
- U.S. Department of Veterans Affairs, VA home loans and funding fee and closing costs
- HUD, FHA loans
- FHFA, conforming loan limits
- USDA Rural Development, property eligibility map
Updated October 2026. General information only; confirm program details with your lender.
Buying With a VA Loan in Northern Virginia
Nikki Lagouros is a certified Military Relocation Professional and a military spouse, and her team helps VA buyers through every step of a PCS move. See the military relocation guide or contact Nikki.