What is a VA loan and who is it for?

A VA loan is a government-backed mortgage available to eligible veterans, active-duty service members, and certain military spouses. It offers benefits like no down payment and no private mortgage insurance.

How do I apply for a VA loan?

At Forward Loans, we help you compare offers from multiple lenders in our mortgage marketplace. We guide you through eligibility, the pre-qualification estimate, and the loan options that fit your situation.

Do I need a down payment for a VA loan?

No, most VA loans do not require a down payment, making homeownership more accessible for eligible borrowers.

What is a Certificate of Eligibility (COE)?

A Certificate of Eligibility (COE) verifies that you qualify for a VA loan based on your military service. Forward Loans can help you obtain your COE quickly during the application process.

Is the VA funding fee the same as PMI?

No. PMI is a monthly charge on many conventional loans. The VA funding fee is a one-time charge, and VA loans have no monthly mortgage insurance.

Do disabled veterans pay the VA funding fee?

Veterans who receive VA compensation for a service-connected disability don't pay it. Neither do surviving spouses who receive Dependency and Indemnity Compensation, and a few other groups VA lists on its funding fee page.

Can I roll the VA funding fee into my loan?

Yes. You can add it to the loan or pay it at closing. On a VA purchase loan, it is the only closing cost VA lets you finance.

VA loans in Arizona: funding fee and exemptions (2026)

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. Through Forward Loans, a Phoenix mortgage broker (NMLS #2006640), eligible veterans, service members and some surviving spouses in Arizona can buy with no down payment and no monthly mortgage insurance, subject to full underwriting. Forward Loans originates VA loans in all eight states it is licensed in.

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On this page

What is a VA loan?
How does a VA loan work?
What are the benefits of a VA loan?
What are the VA loan requirements?
What is the VA funding fee, and who is exempt?
Who is eligible for a VA loan?
Is there a VA loan limit?
What does a VA loan cost?
What types of VA loans are there?
What extra benefits do disabled veterans get?
How do you apply for a VA loan?
VA loan FAQs

What is a VA loan?

A VA loan is a type of government-backed mortgage designed to help eligible veterans, service members, and qualifying surviving spouses buy or refinance a home. Backed by the U.S. Department of Veterans Affairs (VA), these loans come with numerous benefits, including no down payment and no private mortgage insurance. Forward Loans compares VA loan options from the lenders we work with and shows you how they line up.

How does a VA loan work?

The VA does not issue VA home loans but backs them, making them less risky for lenders. That backing allows lenders to offer terms such as no down payment. VA loan types are non-conforming loans because they don’t meet the guidelines of conventional lenders like Fannie Mae and Freddie Mac. This flexibility helps more clients qualify for these loans.

What are the benefits of a VA loan?

No Down Payment:

Most VA loans allow you to purchase a home with no money down.

Loan pricing:

Each lender prices VA loans on its own terms. We compare VA options for your file so you can see how they stack up.

No Private Mortgage Insurance (PMI):

VA loans don’t require monthly mortgage insurance payments.

100% Access to Home Equity

You can convert up to 100% of your home equity into cash if you qualify.

Rate and Term Refinance Options:

Existing VA loan holders can refinance with fewer documentation requirements and often no appraisal needed.

What are the VA loan requirements?

Here’s what you need to qualify for a VA loan:

580 Median Credit Score

A credit score of 580 means you don’t need perfect credit to get a VA loan.

Certificate of Eligibility (COE)

You need a COE to show lenders that you’re a qualifying service member or surviving spouse. You can obtain a COE by providing proof of service. Forward Loans Mortgage Marketplace can assist you in securing your COE.

Debt-to-Income Ratio ≤ 60%

VA loans are accessible with a debt-to-income (DTI) ratio of up to 60%, making them more attainable than some other loan options.

How does the VA funding fee work?

The VA funding fee is a one-time charge paid to VA on most VA loans. It is not mortgage insurance. VA loans have no monthly mortgage insurance, and the fee helps cover the program's cost to taxpayers.

How much it is depends on three things:

The loan type: purchase, cash-out refinance, or Interest Rate Reduction Refinance Loan (IRRRL)
Whether this is your first VA loan or a later one
On a purchase, how much you put down

VA sets the fee and posts the current chart on its funding fee page. Check it there before you compare Loan Estimates.

You can pay the fee at closing or add it to the loan. On a VA purchase loan, it is the only closing cost VA lets you finance. Your other closing costs are paid at closing.

Who is exempt from the VA funding fee?

You don't pay the funding fee if one of these applies, per VA:

You receive VA compensation for a service-connected disability
You're eligible for that compensation but receive retirement or active-duty pay instead
You're a surviving spouse who receives Dependency and Indemnity Compensation
You're on active duty and have a proposed or memorandum rating, issued before closing, that finds you eligible for compensation from a pre-discharge claim
You're on active duty and show proof of a Purple Heart on or before closing

If VA later awards you service-connected compensation with an effective date before your closing, you may get the fee refunded. Your VA regional loan center handles refunds.

How do you choose a VA lender in Arizona?

Choose by what each lender puts in writing. Ask two or three lenders for a Loan Estimate on the same day, for the same VA loan and price. Then compare origination charges, any points, and estimated cash to close. Forward Loans, a Phoenix mortgage broker and non-delegated correspondent lender (NMLS #2006640), can compare VA programs from multiple lenders on one application.

Questions to ask any VA lender:

Will you confirm my funding fee status before my Loan Estimate?
Do you handle VA purchases, IRRRLs and cash-out refinances?
Who underwrites my file, and who do I call while it's in underwriting?
What is your NMLS number? Check it on NMLS Consumer Access.

Who is eligible for a VA loan?

VA loans are available to:

Veterans

Active service members

National Guard members (currently or formerly activated)

Current or discharged members of the National Guard who haven’t been activated

Surviving spouses

To qualify, you must also meet one of the following criteria:

181 days of active service during peacetime.

90 consecutive days of active service during wartime.

More than 6 years of service with the National Guard or Reserves or 90 days under Title 32 with at least 30 consecutive days.

Spouses of service members who lost their lives in the line of duty or due to a service-connected disability, subject to certain conditions.

What else affects VA loan eligibility?

Beyond the basic service requirements, your income, assets, and credit must also meet certain standards. The property you’re buying must comply with VA loan occupancy requirements, meaning it must be your primary residence within 60 days of purchase.

Property Types

VA loans can be used for single-family homes, condos, and manufactured homes. However, not all VA lenders will finance loans for condos and manufactured homes. Forward Loans Mortgage Marketplace can connect you with lenders who do.

Credit Score

The VA doesn’t set a minimum credit score requirement, but lenders do. Each lender sets its own minimum, and the minimum for a cash-out refinance can be higher than for a purchase. We check your score against the lenders we work with.

Income

Your lender looks at your debt-to-income ratio (DTI) and at VA’s residual income test, which checks what you have left each month after major expenses. Lenders also set their own DTI limits. Our guide to how lenders count your income in Arizona covers DTI, self-employed pay, job gaps and travel nurse contracts.

Is there a VA loan limit?

The VA doesn’t cap how much you can borrow, but there are limits tied to the conforming loan limit, which the FHFA adjusts every year and which runs higher in high-cost areas. For loans exceeding these limits, VA jumbo loans are available.

What does a VA loan cost?

Even with no down payment, VA loans aren’t free of costs. Here’s what to expect:

Funding Fee

Most borrowers pay a one-time funding fee. The amount depends on loan type, prior VA use and, on a purchase, the down payment. It can be financed into your loan. Veterans who receive VA compensation for a service-connected disability, and surviving spouses who receive Dependency and Indemnity Compensation, don't pay it.

Reserve Funds

Lenders may require reserve funds, which are additional funds in the bank to cover mortgage payments after closing. Typically, having reserves equal to two months' worth of mortgage payments is beneficial.

What types of VA loans are there?

There are several VA loan options, including:

VA Purchase Loans

VA purchase loans allow eligible borrowers to buy a home with no down payment, provided they meet credit and DTI requirements.

VA Rate-and-Term Refinances

These refinances allow borrowers to lower their interest rate or change their loan term, often with fewer documentation requirements.

VA Streamline Refinance (IRRRL)

This refinance option offers lower documentation and no appraisal requirements, making it easier for existing VA loan holders to lower their interest rate or change their loan term.

VA Cash-Out Refinance

This option allows you to convert home equity into cash. To qualify, you need a minimum credit score of 620. You can take out up to 100% of your home’s value.

What extra benefits do disabled veterans get?

Disabled veterans receive additional benefits, including:

Funding Fee Exemption

Veterans who receive VA compensation for a service-connected disability don't pay the VA funding fee.

Specially Adapted Housing (SAH) Grants

These grants help veterans with disabilities construct or modify homes to better suit their needs. The VA adjusts the maximum SAH grant amount each year.

Special Housing Adaptation (SHA) Grant

This grant helps veterans with certain service-connected disabilities modify their homes.

Temporary Residence Adaptation (TRA) Grant

TRA grants help veterans with disabilities make temporary adaptations to a family member’s home.

Property Tax Exemption

Many states offer property tax exemptions to disabled veterans. These exemptions vary, so check with your local VA office for details.

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How do you apply for a VA loan?

Here are the steps to apply for a VA loan:

Secure a Certificate of Eligibility (COE)

You’ll need a COE to show your eligibility for a VA loan. Forward Loans Mortgage Marketplace can help you obtain your COE.

Get a pre-qualification estimate

A pre-qualification estimate shows what you can afford and gives sellers confidence in your offer.

Shop for a House

Find a home that meets your needs and the VA’s Minimum Property Requirements (MPRs).

Make a Purchase Offer

Submit an offer on your chosen home. Once accepted, a sales contract will be drawn up.

Undergo VA Appraisal and Underwriting

Your lender will assess your finances and the VA will conduct an appraisal to ensure the home meets MPRs.

Close on Your New Home

Sign the necessary documents, pay closing costs, and receive the keys to your new home.

Is a VA loan right for you?

A VA loan is a valuable benefit for eligible veterans and service members. With no down payment and no PMI, it offers a workable path to homeownership. If you’re ready to take advantage of this benefit, start your VA loan application with Forward Loans and compare options from the lenders we work with.

VA loan FAQs

What is a VA loan and who is it for?
A VA loan is a government-backed mortgage available to eligible veterans, active-duty service members, and certain military spouses. It offers benefits like no down payment and no private mortgage insurance.
How do I apply for a VA loan?
At Forward Loans, we help you compare offers from multiple lenders in our mortgage marketplace. We guide you through eligibility, the pre-qualification estimate, and the loan options that fit your situation.
What are the benefits of a VA loan?
VA loans offer no down payment, no private mortgage insurance (PMI), and flexible credit requirements.
Do I need a down payment for a VA loan?
No, most VA loans do not require a down payment, making homeownership more accessible for eligible borrowers.
What is a Certificate of Eligibility (COE)?
A Certificate of Eligibility (COE) verifies that you qualify for a VA loan based on your military service. Forward Loans can help you obtain your COE quickly during the application process.
Is the VA funding fee the same as PMI?
No. PMI is a monthly charge on many conventional loans. The VA funding fee is a one-time charge, and VA loans have no monthly mortgage insurance.
Do disabled veterans pay the VA funding fee?
Veterans who receive VA compensation for a service-connected disability don’t pay it. Neither do surviving spouses who receive Dependency and Indemnity Compensation, and a few other groups VA lists on its funding fee page.
Can I roll the VA funding fee into my loan?
Yes. You can add it to the loan or pay it at closing. On a VA purchase loan, it is the only closing cost VA lets you finance.

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