VA-Backed Mortgage Program
VA Loans — $0 down, no monthly MI, for those who served.
Guaranteed by the U.S. Department of Veterans Affairs. Available in FL, GA, MD, PA, TX.
At a glance
What makes a VA loan different
Down payment
0%
No down payment required with full entitlement.
Monthly PMI / MIP
None
VA loans never carry monthly mortgage insurance.
Min credit (most investors)
580
Some VA investors go to 550 with compensating factors.
Funding fee
1.25–3.30%
Financed into the loan. Waived for Purple Heart, service-connected disability, and surviving spouses.
How it works
The VA loan in plain English
The VA does not lend the money — it guarantees a portion of the loan to the lender, which is why no monthly mortgage insurance is needed. That guarantee lets investors accept 0% down without pricing risk the way they would on a conventional no-down product. In practice, you borrow from a VA-approved lender (Alliance works with the major ones) and VA stands behind roughly 25% of the balance.
In exchange for the guarantee, VA charges a one-time funding fee at closing — 1.25% to 3.30% of the loan amount depending on how much you put down and whether this is your first or subsequent use. The fee is usually financed into the loan, not paid out of pocket. Veterans with a service-connected disability rating (any percentage), Purple Heart recipients, and surviving spouses receiving DIC are exempt.
VA underwriting uses a residual income test in addition to the standard DTI ratio — the lender must confirm you have a minimum monthly cash cushion after paying the new mortgage, existing debts, taxes, and utilities. Thresholds vary by family size and region. This is why VA borrowers with higher DTIs than conventional programs would accept still qualify: if the residual income is strong, the file works.
The honest tradeoff: the funding fee (if not exempt) is real money, and VA appraisers hold properties to the VA Minimum Property Requirements — peeling paint on older homes, missing handrails, roofs with less than 3 years of life remaining, and active termite infestation can derail a contract. Rural, fixer-upper purchases sometimes fit an FHA 203(k) or conventional renovation loan better. Alliance will tell you straight when another program is the better fit.
For veterans with partial entitlement (an active VA loan or a past short sale / foreclosure that has not been fully restored), the county loan limit still matters on the second loan. We pull your COE in the first 48 hours of pre-approval so you know exactly how much entitlement you have before shopping.
The numbers
VA fee grid — 2026 rates
Purchase loan — first use, ≥5% down
1.25%
VA funding fee
Purchase loan — first use, 0% down
2.15%
VA funding fee
Purchase loan — subsequent use, 0% down
3.30%
VA funding fee
Cash-out refinance
3.30%
VA funding fee
IRRRL (streamline refi)
0.50%
VA funding fee
Loan limit — full entitlement
Uncapped
County limits no longer cap full-entitlement veterans (Blue Water Navy Act, 2020).
Funding fees shown are current as of 2026. Fees are waived entirely for veterans with a service-connected disability rating, Purple Heart recipients, and surviving spouses receiving DIC. Confirm your exemption status on your Certificate of Eligibility.
Next step
Start the numbers or start the file
FAQ
What veterans actually ask us
Who qualifies for a VA loan in 2026?
Veterans with 90+ days active-duty wartime service or 181+ days peacetime; 6+ years in the National Guard or Reserves (or 90+ days of active Title 32 service); active-duty members with 90+ continuous days; and eligible surviving spouses. The Certificate of Eligibility (COE) from VA confirms your entitlement — Alliance pulls the COE for you during pre-approval.
Do I really pay $0 down and no mortgage insurance?
Yes. With full VA entitlement, there is no down payment required and no monthly MI. In place of MI, VA charges a one-time funding fee (1.25%–3.30% depending on use and down payment) that finances into the loan. Veterans with a service-connected disability rating, Purple Heart recipients, and surviving spouses collecting DIC are exempt from the funding fee entirely.
Is there a VA loan limit in Texas or Florida?
Not if you have full entitlement. Since 2020, the Blue Water Navy Vietnam Veterans Act removed county loan limits for veterans with full entitlement. You can borrow what you qualify for based on income and residual income, not a county cap. Veterans with partial entitlement (an active VA loan or past foreclosure) are still subject to conforming limits on the second loan.
What credit score do I need for a VA loan?
VA itself sets no minimum — that rule comes from the investor. Most VA investors want 580+; a few allow 550 with strong compensating factors (low DTI, residual income well above the table, long housing history). Alliance shops across VA-approved investors so a 580 borrower sees the same menu a 720 borrower does — just at a different rate.
Can I use my VA loan more than once?
Yes. VA entitlement is restorable — once you pay off a prior VA loan and sell the property (or do a one-time restoration without sale), your full entitlement comes back. Many veterans use VA loans 3–5 times across a career. You can also hold two VA loans simultaneously in some cases using remaining entitlement.
What is an IRRRL and should I consider one?
An Interest Rate Reduction Refinance Loan (IRRRL) is VA's streamline refi — no appraisal, no income verification, no new COE pull. If rates drop 0.50%+ below your current VA rate and you plan to stay 24+ months, it is almost always worth running. The funding fee is only 0.50% and Alliance can close most IRRRLs in 21 days.
Ready to start?
Apply in minutes through our secure application portal, or schedule a call with our team.