VA Mortgage Rates 2026: Limits, Funding Fees & Guidelines

For eligible service members, veterans, and surviving spouses, a VA loan is arguably the most powerful mortgage product in existence. Backed by the Department of Veterans Affairs (VA), these loans typically feature zero down payment, no private mortgage insurance (PMI), and extremely competitive interest rates.

Current 2026 VA Mortgage Rates

Because VA loans carry a government guarantee, risk to the private lender is substantially reduced. Consequently, VA mortgage rates naturally sit lower than their conventional counterparts.

Going into the spring of 2026, 30-year fixed VA loan rates average around 5.375% to 5.500%. Refinancing through the VA IRRRL (Interest Rate Reduction Refinance Loan) offers comparable rates, allowing veterans already holding VA loans to effortlessly drop their monthly payments if rates sink below their current note.

2026 VA Loan Limits: Are There Any?

No! For borrowers with full VA entitlement, there are no loan limits as of 2026. You can borrow as much as a lender is willing to approve you for without needing a down payment. You qualify based purely on your credit, income, and debt ratio.

However, if you have partial entitlement—meaning you already have an active VA loan or you defaulted on a previous one—the standard conforming loan limit rules apply. For 2026, the baseline limit for a single-family home is $832,750 (a 3.3% increase from 2025). In designated high-cost counties, this limit extends all the way up to $1,249,125.

The 2026 VA Funding Fee

While VA loans do not require monthly PMI, they do assess a one-time upfront cost known as the VA Funding Fee. This fee helps offset the cost of the program to taxpayers. In 2026, the fee schedule is largely the same:

• First-time VA use (0% down): 2.15%
• Subsequent use (0% down): 3.30%
• 5% or more down payment: Fee drops to 1.5% or lower.

*Note: Veterans receiving VA compensation for a service-connected disability are exempt from the funding fee.

Underwriting Guidelines

While the VA does not set a hard minimum credit score, most participating lenders will look for a FICO score of at least 620 (although some specialized lenders will accept 580).

Additionally, the VA is remarkably lenient regarding your Debt-to-Income (DTI) ratio. While a 41% DTI is preferred, lenders can push your DTI well past 45% if you pass the VA's unique "Residual Income" test—a metric designed to ensure you always have enough free cash available for everyday expenses.