Can I buy a home with no money down using my VA loan?

Who can get a VA loan?

• Veterans who meet the service requirements.
• Active-duty service members, and National Guard and Reserve members who meet the service requirements.
• Some surviving spouses.

Your Certificate of Eligibility (COE) proves it. I can usually pull it for you through the VA system, often the same day.

What makes a VA loan different?

• No down payment with full entitlement (no VA loan limit when you have full entitlement).
• No monthly mortgage insurance, ever.
• Competitive rates, because the VA guarantees part of the loan.
• Limits on what you can be charged in closing costs.
• Primary residence, 1 to 4 units: you can buy a duplex to fourplex and live in one unit.
• Assumable: a future buyer may be able to take over your loan, which can be a selling point if rates rise.

What does a VA loan cost?

• VA funding fee: a one-time fee that keeps the program running. For a first-time use with less than 5% down it's 2.15% of the loan, lower with 5% or 10% down, and higher on later uses. It can be rolled into the loan.
• Funding fee exemption: if you receive VA disability compensation (and in some other cases), you don't pay it at all.
• Closing costs: appraisal, title, escrow, and lender fees, commonly 2% to 5% of the loan amount. The seller can pay your closing costs and up to 4% more in concessions.
• Our costs: shown line by line on your Loan Estimate. Compare it with other VA lenders; see how to tell if a VA Loan Estimate is a good deal.

What credit score do I need?

The VA doesn't set a minimum credit score; each lender sets its own. A past bankruptcy or collections don't end your benefit, either. See VA loans after bankruptcy or with lower credit.

Can I refinance a VA loan?

• VA IRRRL (streamline): lowers your rate, usually with no appraisal, as long as it gives you a real benefit.
• VA cash-out refinance: take equity out, or move a non-VA loan into a VA loan.

See all your options on refinancing.

Example scenario (illustrative)

An Army veteran in Colorado Springs with a 30% disability rating is buying her first home for $450,000. With full entitlement she puts nothing down, pays no monthly mortgage insurance, and is exempt from the funding fee. The seller covers part of her closing costs, so her cash to close is mostly prepaid taxes and insurance.

Our take

The VA loan is one of the best benefits you earned. Use it. I'll pull your COE, check your funding fee exemption, and show you a VA quote next to a conventional one, so you can see exactly why VA usually wins. Thank you for your service.