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VA home loans, from the source

The VA Loan Rules Written Into Law

Much of what makes a VA home loan different is not a lender's promise. It is written into Title 38 of the U.S. Code and VA's own regulation. This site explains those rules as the law states them, so you can tell a real VA protection from a sales line.

Protections every VA borrower has

No prepayment penalty

VA's regulation gives the borrower the right to prepay at any time, without premium or fee. Pay it down or pay it off whenever you want.

A capped late charge

A late charge on a VA loan cannot exceed 4 percent of an installment, and only on a payment more than 15 days past due.

Limited closing costs

The regulation lists what a Veteran may pay and caps the lender's origination charge. Anything not on the list cannot be charged to you.

An assumable loan

A qualified buyer can take over your VA loan, and if you follow the notice rules you are released from liability to VA.

What the law decides, and what it leaves to you

Eligibility is statutory

Whether your service qualifies is set by law, with specific day counts for each kind of service. It is not a lender's call. See eligibility and your certificate.

The funding fee is statutory

The one-time VA funding fee is a table in 38 U.S.C. 3729, and several groups of Veterans are exempt by law.

The interest rate is negotiated

Your rate is agreed between you and the lender, which is why comparing lenders matters. Today's VA pricing is on VA mortgage rates.

Why this site exists

VA loans come with more borrower protection than almost any other mortgage, but most of it is buried in statute and regulation that few borrowers ever read. We are a licensed mortgage broker and a Veteran-owned company, and we would rather you know your rights than take our word for them. Each page links the rule to its source.

Sources: 38 U.S.C. 3702, 3714 and 3729; 38 CFR 36.4311, 36.4312 and 36.4313 (U.S. Code and eCFR, current September 2026). Not legal advice. Not a commitment to lend.

VA loan basics FAQ

Can I pay off a VA loan early without a penalty?
Yes. VA's regulation gives the borrower the right to prepay at any time, without premium or fee, the entire balance or any part of it not less than one installment or $100, whichever is less.
How much can a lender charge for a late VA loan payment?
No more than 4 percent of the installment, and only when the payment is more than 15 days past its due date.
Is a VA loan assumable?
Yes. A buyer who is obligated to assume the loan and qualifies from a credit standpoint can assume it, and the seller who notifies the holder in writing before the sale is released from liability to VA.
Who sets the interest rate on a VA loan?
VA loans carry a rate agreed upon by the Veteran and the lender, so the rate depends on the lender you choose and your file. The Veteran may also pay reasonable discount points.

Three VA rules worth knowing before you apply

Eligibility and COE

90 days, 181 days, 24 months, 6 years - the day counts come from the statute, and so do the exceptions.

VA Loan Assumption

A buyer can take over your VA loan and rate. Notify the holder first and qualify the buyer, and you walk away from the liability.

Closing Costs and Fees

VA lists what a Veteran may pay and caps the lender's own charge at 1 percent. Anything else is not yours to pay.

Know the rules, then use them

A short call checks your eligibility, what your service qualifies you for, and what the law lets a lender charge you, before you commit to anything.