VA Loan Benefits: 0% Down for Veterans & Service Members
VA loan eligibility, zero down payment, no monthly mortgage insurance, the funding fee, and how VA loans compare to FHA and conventional financing.
A VA loan lets eligible veterans and service members buy a primary residence with no down payment and no monthly mortgage insurance, paying a one-time funding fee of 1.25% to 3.3% instead.
What you'll walk away with
Skim these first — then dig into the details below.
- 1No down payment required for eligible borrowers, with no loan limit if you have full entitlement.
- 2No monthly mortgage insurance — the largest ongoing savings versus FHA.
- 3The funding fee runs 1.25–3.3% and is waived for veterans with a service-connected disability.
- 4The home must be your primary residence, not a rental or vacation property.
Reading helps. Calculating makes it real. Free tools — instant results, no signup.
The VA loan is one of the strongest mortgage benefits available in the United States. It combines no down payment, no monthly mortgage insurance, and competitive interest rates — a combination no other widely available program offers.
See what your payment looks like without a down payment using the mortgage calculator, and confirm the total fits your budget with our how much house can I afford guide.
Who is eligible
Eligibility is based on service history and is confirmed by a Certificate of Eligibility, which your lender can usually request for you in minutes.
- Active duty: 90 continuous days during wartime, or 181 days during peacetime.
- Veterans discharged under conditions other than dishonorable.
- National Guard and Reserve members with six years of service, or 90 days of active duty.
- Surviving spouses of service members who died in service or from a service-connected disability.
Understanding the funding fee
The funding fee replaces mortgage insurance and keeps the program self-sustaining. It can be rolled into the loan rather than paid in cash at closing.
- First use with 0% down: 2.15% of the loan amount.
- Subsequent use with 0% down: 3.3%.
- Putting 5% down lowers the fee to 1.5%; 10% down lowers it to 1.25%.
- Fully waived for veterans receiving compensation for a service-connected disability.
- Also waived for eligible surviving spouses.
VA compared to other loans
For anyone who qualifies, the VA loan is usually the cheapest option available. The main scenarios where it is not are worth knowing.
- Versus FHA: VA wins clearly — no down payment and no lifetime mortgage insurance.
- Versus conventional with under 20% down: VA usually wins on total cost.
- Versus conventional with 20% or more down: conventional may win, since neither charges insurance and VA still charges the funding fee.
- See our FHA vs conventional comparison for how the alternatives stack up.
Rules and limitations to plan around
The program has real constraints. Knowing them early prevents a failed offer or a surprise at underwriting.
- Occupancy: you must intend to live in the home, generally within 60 days of closing.
- Property type: single-family, VA-approved condos, and multi-unit properties if you occupy one unit.
- The VA appraisal enforces minimum property requirements, which can complicate fixer-uppers.
- Some sellers wrongly assume VA offers are slower — a strong pre-approval letter helps counter this.
- No prepayment penalty, and the streamline refinance (IRRRL) makes future rate drops easy to capture.
Disclaimer: This page includes AI-assisted educational content reviewed for general accuracy. It is not personalized financial, tax, or legal advice. Verify numbers with a qualified professional and our editorial standards.
Continue reading
Related guides that deepen the same decision.
FHA vs Conventional Loan: Which Is Better for You?
Choose an FHA loan if your credit is under about 680 or your down payment is minimal, and choose a conventional loan if you have good credit and at least 5% down, because its mortgage insurance can be cancelled at 20% equity.
ReadReal EstateFirst-Time Homebuyer Guide: Steps, Programs & Mistakes
Buy your first home by getting pre-approved before you shop, saving both a down payment and 2–5% for closing costs, and comparing at least three lenders on the same day for the best rate.
ReadReal EstateHow Much House Can I Afford? Rules, Ratios & Calculator
Keep total housing costs under about 28% of gross monthly income and all debt payments under 36%, then buy below your pre-approval ceiling so repairs and rate changes do not break your budget.
ReadReady to plug in your numbers?
Every guide pairs with free calculators — no signup.
Explore all calculators