VA loans in Arizona and Phoenix: eligibility, entitlement, and the funding fee

What is a VA home loan?

VA doesn't usually lend the money. It guarantees part of a loan made by a bank, credit union, or mortgage company, which protects the lender if the loan isn't repaid. According to VA.gov, a VA-backed purchase loan often offers:

• Less cash needed up front than many other loan types, depending on your entitlement and the appraised value.
• No private mortgage insurance (PMI) or FHA mortgage insurance premiums. The VA guaranty takes the place of mortgage insurance.
• Limits on closing costs, some of which the seller may pay. VA caps seller concessions at 4% of the home's reasonable value. It doesn't limit seller credits for normal closing costs.
• No prepayment penalty if you pay the loan off early.
• A reusable benefit. You can use it again after you sell or refinance, and VA loans can be assumed by a qualified buyer.

You can use it to buy a single-family home or a property with up to 4 units (if you live there), a condo in a VA-approved project, or a manufactured home, or to build or improve a home. You must plan to live in the home.

Source: VA.gov, VA-backed purchase loan and funding fee and closing costs, retrieved October 1, 2026.

Who is eligible for a VA loan?

Eligibility depends on your service history and duty status. You also need to meet VA's and the lender's credit, income, and occupancy standards. VA.gov lists these minimums:

• Current service members: at least 90 continuous days of active duty.
• Veterans: minimum active-duty service depends on when you served. A discharge for a service-connected disability can qualify with less time.
• National Guard and Reserve: generally 6 creditable years, or qualifying activation (for Guard members, at least 90 days of active duty including 30 consecutive days).
• Surviving spouses: some surviving spouses of veterans who died in service or from a service-connected disability qualify.

Source: VA.gov, Eligibility for VA home loan programs, retrieved October 1, 2026.

VA loan limits in Arizona for 2026

If you have full entitlement, there's no VA loan limit. You still need the lender to approve the loan amount, and the loan can't be more than the home's appraised value or price, whichever is lower. You have full entitlement if you've never used the benefit, or you've used it and fully restored it.

If you have remaining (partial) entitlement, for example because a prior VA loan is still open, VA uses the FHFA conforming loan limit for the county. For 2026, that's $832,750 for a one-unit home in every Arizona county. VA's method:

1. Find the entitlement already used in the "Entitlement Charged" column of your COE.
2. Multiply the county one-unit limit by 25%. In Arizona: $832,750 × 0.25 = $208,187.50.
3. Subtract the entitlement already used. The result is your remaining bonus entitlement.

For example, with $50,000 of entitlement already used, the remaining bonus entitlement in any Arizona county would be $158,187.50. VA says most lenders want your entitlement, a down payment, or a mix of both to cover at least 25% of the loan amount, so remaining entitlement affects how much you can borrow before a down payment comes into play.

Sources: VA.gov, VA home loan entitlement and limits; FHFA, 2026 conforming loan limits; HUD lookup of 2026 Fannie Mae/Freddie Mac limits for all 15 Arizona counties. All retrieved October 1, 2026.

The VA funding fee, in plain terms

• It's a one-time fee paid to VA on most VA-backed loans. VA says it lowers the program's cost to taxpayers, since VA loans don't have monthly mortgage insurance.
• It's a percentage of the loan amount. The percentage depends on the loan type, whether it's your first VA loan, and, for purchases, your down payment. VA publishes the current chart on VA.gov.
• You can pay it at closing or add it to the loan. Adding it raises the loan amount and the total cost (CFPB).
• Who doesn't pay it: VA lists exemptions, including veterans receiving (or eligible for) VA compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation, certain service members with a pre-discharge rating, and active-duty Purple Heart recipients who show proof by closing. A refund may be possible if a disability rating is later made retroactive to before closing.

Source: VA.gov, VA funding fee and loan closing costs (last updated September 22, 2026), retrieved October 1, 2026. We don't restate the fee percentages here. Use VA's chart, and your Loan Estimate will show the exact fee.

How to get your Certificate of Eligibility (COE)

1. Gather your service documents. Veterans usually need a DD214. Current service members need a statement of service signed by their commander, adjutant, or personnel officer. Guard and Reserve members and surviving spouses have their own document lists on VA.gov.
2. Request the COE online at VA.gov, through your lender (many lenders can pull it through VA's system), or by mail with VA Form 26-1880.
3. Check the entitlement on your COE and share it with your loan officer.
4. Get approved and choose a home. The lender orders a VA appraisal and reviews your credit and income, then you close with a title company.

Source: VA.gov, How to request a VA home loan COE, retrieved October 1, 2026.

Notes for Arizona veterans and military families

• Military communities. Arizona is home to Luke Air Force Base in the West Valley, Davis-Monthan Air Force Base in Tucson, Fort Huachuca near Sierra Vista, and Marine Corps Air Station Yuma. If you're relocating on orders, a VA loan needs you to plan to live in the home. Ask your lender how they handle timing around a report date.
• Phoenix-area buyers. Maricopa County has no separate VA limit. With full entitlement there's no VA cap. With partial entitlement the 2026 county figure is $832,750, the same as the rest of Arizona.
• Property tax exemption for veterans with a disability. Arizona offers a property tax exemption for qualifying veterans with a disability, administered by county assessors with income and assessed value limits and annual filing. For tax year 2026, county assessors list a $4,873 assessed value exemption multiplied by the VA disability percentage, and a full exemption for a 100% service-connected rating (Cochise County Assessor). Confirm with your county assessor.
• State veteran resources. The Arizona Department of Veterans' Services offers benefits counseling.

Sources: A.R.S. §42-11111; Cochise County Assessor (Tax Year 2026); Arizona Department of Veterans' Services. All retrieved October 1, 2026.

Rebel Rate Mortgage, Inc. offers VA loans in Arizona. Daryle Messina (NMLS #183491) can review your COE and entitlement with you.

General information for Arizona home buyers, not a loan offer, rate quote, or commitment to lend. Program rules come from the official sources linked on this page and can change. All loans are subject to credit approval, underwriting, and property eligibility, and not all applicants will qualify. Rebel Rate Mortgage, Inc. is not a government agency and is not affiliated with or endorsed by HUD, FHA, the Department of Veterans Affairs, FHFA, Fannie Mae, or Freddie Mac. We don't quote interest rates on this site. A Loan Estimate shows the actual terms for a specific loan.

Related loan guides

• Arizona FHA loans
• Arizona conventional loans
• Phoenix mortgage broker: Rebel Rate Mortgage

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Sources

• VA.gov, VA-backed purchase loan (last updated January 7, 2026; retrieved October 1, 2026)
• VA.gov, Eligibility for VA home loan programs (retrieved October 1, 2026)
• VA.gov, VA home loan entitlement and limits (last updated August 12, 2025; retrieved October 1, 2026)
• VA.gov, VA funding fee and loan closing costs (last updated September 22, 2026; retrieved October 1, 2026)
• VA.gov, How to request a VA home loan Certificate of Eligibility (COE) (last updated September 22, 2026; retrieved October 1, 2026)
• FHFA, Conforming Loan Limit Values for 2026 (news release, November 25, 2025) (retrieved October 1, 2026)
• CFPB, What is mortgage insurance and how does it work? (last reviewed August 28, 2026; retrieved October 1, 2026)
• Arizona Revised Statutes §42-11111 (property tax exemption, veterans with a disability) (retrieved October 1, 2026)
• Cochise County Assessor, Tax Year 2026 individual exemptions (retrieved October 1, 2026)
• Arizona Department of Veterans' Services (retrieved October 1, 2026)

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