Buy a Home with VA Financing
Many eligible veterans can purchase with no down payment. VA-backed loans do not require monthly PMI and the benefit is reusable.
VA Purchase Loan Overview
No down payment possible for most eligible borrowers — nearly 90% of VA-backed purchase loans are made without a down payment.
No monthly PMI — VA-backed loans do not require private mortgage insurance.
Reusable benefit — the VA loan benefit can be used again when entitlement is restored or remaining entitlement is sufficient.
No VA loan limit for borrowers with full entitlement. The lender’s underwriting, property appraisal, and purchase price still control the actual amount.
Certificate of Eligibility (COE)
A COE verifies to the lender that the borrower meets VA eligibility requirements. It can be obtained online through the VA eBenefits portal, by mail using VA Form 26-1880, or through a VA-approved lender who can often retrieve it electronically.
VA Funding Fee
First use (less than 5% down): 2.15% of the loan amount
Subsequent use (less than 5% down): 3.3% of the loan amount
The funding fee is lower with 5% or 10%+ down payment.
Exemption: Veterans receiving VA disability compensation (or eligible for it) are generally exempt from the funding fee.
VA announced on February 18, 2026 that VA funding fees may be tax deductible — consult a tax professional.
Important Details
Seller concessions: Capped at 4% of the reasonable value of the property.
Credit score: VA does not impose a minimum credit score requirement. However, individual lenders may set their own minimum standards.
Zero down payment does not mean zero cash at closing. Closing costs, prepaid items, and other expenses may still apply. Lender underwriting and property appraisal control the actual loan terms.