By Randy Whetsell, Principal Broker at Haus Realty & Management
What are the VA loan requirements in 2026?
If you are a veteran, active-duty service member, National Guard member, Reservist, or qualifying surviving spouse planning to buy near Clarksville or Fort Campbell, a VA-backed home loan may help you purchase with no down payment and no monthly private mortgage insurance.
However, “zero down” does not mean “zero preparation.” You still need to confirm your eligibility, obtain a Certificate of Eligibility, meet lender credit and income requirements, satisfy residual-income guidelines, plan for the VA funding fee, and purchase a home that will be your primary residence.
This guide explains the most important VA loan requirements for Clarksville, Tennessee, and Fort Campbell buyers in 2026.
1. Confirm your military service eligibility
The U.S. Department of Veterans Affairs determines eligibility based on your service history, duty status, and discharge circumstances.
Common eligible groups include:
- Veterans with qualifying service
- Active-duty service members
- National Guard members
- Reserve members
- Certain surviving spouses
- Some service members discharged under qualifying exceptions
Service requirements vary by service period and status. For current active-duty service members, at least 90 continuous days may satisfy the minimum requirement. Veterans may qualify through different service periods, including 24 continuous months, the full period for which they were called to active duty, or qualifying exceptions.
National Guard and Reserve eligibility may be based on qualifying active-duty service or six creditable years of service.
Review the official VA eligibility requirements before assuming you qualify. If your discharge status or service history is unusual, you may still be able to apply for a VA review.
2. Obtain your Certificate of Eligibility
Your Certificate of Eligibility, or COE, confirms that you meet the service requirements for the VA home loan benefit. It also helps show whether you have full or previously used entitlement.
You can request a COE through the VA’s online benefits system, commonly associated with eBenefits, through the current VA.gov process, or through your lender. Many VA-approved lenders can request the certificate electronically during pre-approval.
Before you begin touring Clarksville homes, ask your lender to review:
- Your COE and entitlement status
- Whether you have full or partial entitlement
- Whether a prior VA loan is still using entitlement
- Whether entitlement restoration may be available
- Whether a down payment could be required because of remaining entitlement
With full entitlement, the VA generally does not set a maximum loan amount. That does not mean you can borrow any amount you choose. Your lender must still approve the loan based on your income, debts, assets, credit history, and the property appraisal.
If you have partial entitlement, county-based loan limits may affect how much you can borrow without a down payment. Your lender should calculate this for the specific property and your individual COE.
3. Meet lender credit, income, and residual-income requirements
The VA does not impose one universal minimum credit score for every borrower. Individual lenders may establish their own requirements, and many prefer a score in the low 600s or higher.
Your lender will generally review:
- Credit history and payment patterns
- Employment and income stability
- Debt-to-income ratio
- Available assets and reserves
- Recent credit inquiries or new debt
- Student loans, child support, and other recurring obligations
VA underwriting also emphasizes residual income. This is the amount of money remaining each month after estimated housing expenses and major debts are paid.
Residual income helps the lender evaluate whether you can continue to afford ordinary household needs such as:
- Food
- Transportation
- Medical care
- Utilities
- Clothing
- Childcare
- Other family expenses
The required amount depends on factors such as household size, loan amount, and region. A borrower with a higher debt-to-income ratio may still qualify in some circumstances if the overall file is strong and residual income is sufficient. Your lender: not a general online calculator: should determine whether your income meets the applicable standard.
4. Plan to occupy the home as your primary residence
A VA purchase loan is generally intended for your primary residence. You must intend to occupy the property, and lenders commonly expect you to move in within approximately 60 days after closing.
Some exceptions may apply when military orders, deployment, or other circumstances prevent the borrower from moving in personally. In certain situations, occupancy by a spouse or dependent may satisfy the requirement.
For Fort Campbell buyers, this matters because you may be comparing:
- Clarksville neighborhoods
- Sango and Woodlawn
- St. Bethlehem and Rossview
- Oak Grove, Kentucky
- Hopkinsville and other nearby communities
Your home search should reflect where you realistically plan to live: not a property purchased strictly as an investment or vacation rental. If you are considering a multi-unit property, ask your lender about the requirement to occupy one of the units.
For local relocation considerations, review Haus’s PCS to Fort Campbell guide.
5. Understand the VA funding fee
The VA funding fee is a one-time charge on most VA-backed purchase loans. It helps support the program and may be financed into the loan rather than paid entirely at closing.
For purchase loans, the current funding-fee structure is generally:
| Down payment | First VA use | Subsequent VA use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
For example, on a $350,000 purchase with no down payment, a first-time VA user’s 2.15% funding fee would be approximately $7,525 before lender-specific adjustments. If financed, that fee increases the loan balance and monthly payment.
You may be exempt if you receive VA compensation for a service-connected disability, are eligible to receive that compensation but receive retirement or active-duty pay instead, receive Dependency and Indemnity Compensation as a surviving spouse, have a qualifying proposed or memorandum rating before closing, or meet another VA exemption category.
Read the official VA funding fee and closing cost guidance and have your lender confirm your status.
6. Know how closing costs and seller concessions work
A $0-down VA loan may still involve closing costs, prepaid taxes, homeowners insurance, title charges, lender fees, appraisal fees, and other transaction expenses.
VA rules allow sellers or builders to pay some or all eligible buyer closing costs. Standard seller-paid closing costs are treated differently from seller concessions. Seller concessions are generally limited to 4% of the property’s reasonable value and may include items such as payment of the funding fee, debt payoff, or prepaid insurance.
On a purchase loan, you generally cannot finance ordinary closing costs into the loan. The VA funding fee is the principal exception. This makes it important to discuss your expected cash-to-close with your lender before writing an offer.
In Clarksville’s military-heavy market, ask about seller-paid assistance upfront. Depending on your cash reserves and payment goals, you may prefer:
- Seller-paid closing costs
- Discount points
- A temporary rate buydown
- A combination structured within VA and lender rules
Your lender and Haus agent should coordinate the contract language carefully.
7. Consider a 2-1 buydown carefully
A 2-1 buydown temporarily reduces the interest rate during the first two years:
- Year one: approximately 2 percentage points below the note rate
- Year two: approximately 1 percentage point below the note rate
- Year three and afterward: the full note rate
The loan must still be affordable at the full note rate. A 2-1 buydown is not a permanent rate reduction, and the cost is typically funded through a seller, builder, lender, or other approved source.
For a simple quarter-point illustration, suppose the full 30-year fixed note rate is 6.66% and the loan amount is $300,000:
- At 6.66%, estimated principal and interest: about $1,927 per month
- At 6.41%, a quarter-point lower rate, estimated principal and interest: about $1,878 per month
- Estimated difference: about $49 per month
This illustration excludes taxes, insurance, funding fees, HOA dues, and other costs. It is not a lender quote. Use the Freddie Mac Primary Mortgage Market Survey to monitor national rate trends, but remember that PMMS is not a personalized VA rate.
As of August 27, 2026, Freddie Mac reported a national average 30-year fixed mortgage rate of 6.66%. Your actual VA rate may vary based on lender pricing, credit profile, points, market conditions, and rate-lock timing.
8. Prepare for the VA appraisal and inspection
The VA appraisal helps determine whether the property’s market value supports the purchase price and whether it meets applicable Minimum Property Requirements.
The appraisal is not a substitute for a private home inspection. A professional inspection may identify conditions involving:
- Roof age and wear
- HVAC systems
- Drainage and moisture
- Electrical and plumbing systems
- Foundation movement
- Safety concerns
- Deferred maintenance
If the appraisal is lower than the contract price, you may renegotiate, request a Reconsideration of Value, bring approved funds to closing, or use the protections in your purchase agreement. Discuss your options promptly with your lender and agent.
Haus’s home-buying resources can help you organize the inspection, appraisal, financing, and closing process.
9. Build a Fort Campbell buyer strategy
Your VA eligibility is only one part of a successful purchase. Your strategy should also account for:
- Gate access and daily commute
- PCS timing and closing flexibility
- Tennessee versus Kentucky property taxes
- Insurance costs
- Schools and childcare
- Resale demand
- Home condition and future maintenance
- Expected time in the area
- Available cash reserves
A home that looks affordable based only on principal and interest may become less comfortable after taxes, insurance, utilities, repairs, and moving expenses are added.
Your next step
Start by confirming your service eligibility, requesting your COE, and completing a lender pre-approval. Then ask for a full estimate of your payment, funding fee, closing costs, residual-income qualification, and possible seller-paid assistance.
When you are ready to compare neighborhoods and homes near Fort Campbell, talk with a VA loan specialist at Haus. Our experienced team can help you evaluate Clarksville and Montgomery County options, coordinate with your lender, and move through the transaction with clear, dedicated guidance.
This article is for general educational purposes only. It is not a loan approval, appraisal, legal opinion, tax advice, or financial advice. VA requirements, lender guidelines, funding fees, rates, and contract terms can change. Confirm current details with your lender and the U.S. Department of Veterans Affairs.
Questions this guide answers: What are the VA loan requirements in 2026? Can veterans buy in Clarksville with no down payment? How do I obtain a VA Certificate of Eligibility? What is the VA funding fee? How does residual income affect VA approval? Can a seller pay VA closing costs? How does a 2-1 buydown work near Fort Campbell?
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