If you have served, a VA home loan is one of the most valuable benefits you have earned. It lets eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses buy a home with no down payment and no monthly mortgage insurance. Here on the Gulf Coast, with the Coast Guard's Aviation Training Center in Mobile and NAS Pensacola and NAS Whiting Field just across the state line, we work with military families all the time. Here is what you need to know about VA loans in 2026.
Why VA Loans Are Such a Strong Option
- No down payment. With full entitlement, you can finance 100% of the purchase price.
- No PMI. Conventional loans with less than 20% down usually carry private mortgage insurance. VA loans do not.
- Competitive interest rates. Because the VA guarantees part of the loan, lenders are often able to offer lower rates than on many other loan types.
- Limits on closing costs. The VA restricts some fees a veteran can be charged, and sellers can contribute toward your costs.
- Reusable. The benefit is not one-and-done. Many veterans use it more than once over the years.
- Assumable. A qualified buyer may be able to take over your VA loan when you sell, which can be a real selling point if your rate is lower than the market's.
Who Is Eligible?
Eligibility is based on your length and type of service and your discharge. Veterans, active-duty members, Guard and Reserve members who meet service requirements, and certain surviving spouses can qualify. The first step is getting your Certificate of Eligibility (COE), which a VA-approved lender can usually pull for you in minutes. Your COE also shows whether you have full or partial entitlement, which matters for the next section.
2026 VA Loan Limits
Veterans with full entitlement have no VA loan limit. You still have to qualify based on your income, credit and the appraisal, but there is no county cap on how much you can borrow with zero down.
If you have partial entitlement (for example, you still own a home with an active VA loan), the county conforming loan limit is used to figure out how much you can borrow before a down payment is needed. For 2026, that baseline limit is $832,750 for a single-family home in most counties.
The VA Funding Fee
Most VA loans include a one-time funding fee that helps keep the program running. It can be paid at closing or rolled into the loan. For a home purchase, the current rates are:
| Down payment | First use | Later use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
A VA streamline refinance (IRRRL) carries a 0.5% fee.
You may not have to pay it at all. Veterans who receive VA disability compensation are exempt from the funding fee, along with some others such as active-duty Purple Heart recipients and eligible surviving spouses. If your disability rating comes through after closing, you may be able to get a refund. Starting in 2026 the funding fee may also be tax-deductible for those who qualify, so ask your tax professional.
Yes, You Can Now Pay Your Own Buyer's Agent
For decades, VA rules did not allow veteran buyers to pay their own real estate agent. After the 2024 changes to how agents are paid nationwide, the VA began allowing veterans to pay a reasonable and customary buyer's agent fee, and that change has since been made permanent. A few things to know:
- You can still ask the seller to cover your agent's fee as part of your offer, and many sellers do.
- If you pay it yourself, it is paid at closing and cannot be added to the loan amount.
- The fee must be in your written buyer agreement, and your lender will count it when confirming you have enough funds to close.
We will walk you through your options before you ever tour a home, so there are no surprises.
The VA Appraisal and Property Requirements
Every VA loan requires a VA appraisal. Along with value, the appraiser checks that the home meets the VA's minimum property requirements, which are basic standards for safety, soundness and sanitation. A working roof, safe electrical, adequate heat and no major structural issues are the kinds of things they look for. On older homes or homes that need work, we help you plan ahead so a repair item does not derail your closing. The VA appraisal is not a home inspection, so we still recommend a full inspection on every purchase.
VA loans are for a home you will live in as your primary residence, including single-family homes, VA-approved condos and townhomes, and multi-unit properties up to four units if you live in one.
Alabama Property Tax Relief for Disabled Veterans
Alabama offers a full homestead property tax exemption for veterans rated 100% permanently and totally disabled by the VA, covering state, county and city property taxes on your primary residence. In 2026 Alabama also updated the law so qualifying veterans no longer have to re-verify the exemption every year. You apply through your county revenue commission with your VA letter. If you think you may qualify, let us know early so it can be factored into your monthly payment.
Getting Started
- Talk with a VA-experienced lender to get your COE and a pre-approval.
- Decide where you want to live. Commute to ATC Mobile, NAS Pensacola or Whiting Field, schools, and waterfront or small-town living all play a part. From Mobile to Daphne, Spanish Fort, Fairhope, Foley and the beaches, we know these communities.
- Write a strong VA offer. VA offers compete well when they are written right, and we know how to present them to sellers and listing agents.
Thank You for Your Service
Mobile Bay Home Team helps veterans and military families find their place on the Gulf Coast. Whether you are PCSing in, retiring here or buying your first home, we would love to help.
Search Homes Talk to Our TeamOr call us at 251-714-7800.
This article is general information, not financial, legal or tax advice. VA rules, fees and limits change, and your eligibility and loan terms depend on your situation and lender approval. Confirm current details with a VA-approved lender and at VA.gov.