You don't need a down payment to get a VA loan, but you may choose to make one anyway

A VA loan is a mortgage backed by the Department of Veterans Affairs that lets you buy a home with zero down payment. This is one of the loan's core features — you can finance 100% of the purchase price if you meet the basic requirements. No down payment means you don't have to save thousands of dollars before you can buy.

That said, zero down is not the only option. Some borrowers put money down anyway, usually to lower their monthly payment or reduce the interest rate the lender offers. The choice is yours, but the VA loan itself does not require it.

Key Takeaways

  • VA loans require zero down payment — you can finance the full purchase price of the home.
  • You will still pay a funding fee (usually 2–3% of the loan amount) unless you are exempt, though this can be rolled into the loan itself.
  • The VA loan is only available to military members, veterans, surviving spouses, and certain National Guard members who meet service requirements.
  • Putting down money is optional; some borrowers do it to lower their monthly payment or get a better interest rate.
  • You will need a Certificate of may be able to access from the VA to prove your service record before a lender will process your process.

What you actually pay instead of a down payment

Even though you don't put down money upfront, the VA loan does have a cost built in: the funding fee. This is a one-time charge that goes to the VA to offset the cost of the program. The funding fee is usually 2–3% of the loan amount, depending on whether this is your first VA loan and how much you are putting down (if anything).

For a first-time VA loan with zero down, the funding fee is typically 2.3% of the purchase price. If you are a veteran using the benefit a second time, or if you are putting down 5% or more, the fee drops. If you are exempt — for example, because you receive VA disability compensation — you pay nothing.

The funding fee does not go to your lender. It goes to the Department of Veterans Affairs. Most borrowers roll it into the loan amount rather than paying it out of pocket, which means you finance it over the life of the mortgage instead of paying it upfront. That increases your monthly payment slightly, but it preserves the zero-down advantage.

Who qualifies for a VA loan

Not every veteran can use a VA loan, and not every military member can either. You need a Certificate of may be able to access from the VA, which proves you meet the service requirements. Generally, you may have access to if you served on active duty for at least 90 consecutive days (or 181 days if you served during peacetime), or if you are a surviving spouse of a service member who died in service or from a service-connected disability.

National Guard and Reserve members may also may have access to if they served the required length of time. The exact rules depend on when you served and which branch you were in. You can request your Certificate of may be able to access through the VA website or by mail; the process takes a few days to a few weeks.

Once you have the certificate, you can use it with any VA-approved lender. The certificate proves your may be able to access but does not lock you into one lender or one loan. You can shop around and compare offers from different banks and mortgage companies.

How the zero-down benefit affects your monthly payment

Because you are financing the full purchase price plus the funding fee, your monthly payment will be higher than it would be if you had put down 20% on a conventional loan. However, VA loans typically come with lower interest rates than conventional mortgages, which can offset some of that difference.

You will also avoid private mortgage insurance (PMI), which conventional borrowers pay when they put down less than 20%. That saves you money every month. When you add the lower interest rate and the absence of PMI together, many VA borrowers end up with a monthly payment that is competitive with or lower than what a conventional borrower would pay.

If you want to lower your monthly payment further, you can put money down voluntarily. Putting down 5% or 10% reduces the funding fee and shrinks the loan amount, both of which lower your payment. But you are never required to do this.

When putting money down makes sense

Some borrowers choose to put down 5–20% even though they don't have to. This usually happens in one of three situations: when you want to lower your monthly payment, when you want a better interest rate from the lender, or when the home's purchase price exceeds the VA loan limit in your county.

The VA loan limit varies by county and increases each year. In 2024, the limit in most counties is around $766,000, but it is higher in expensive markets and lower in rural areas. If you want to buy a home that costs more than your county's limit, you can put down the difference and finance the rest with a VA loan. The down payment would be the amount over the limit, not a percentage of the full price.

If you have savings and want to reduce your long-term interest costs, putting down 10–20% is mathematically sound. But if you are tight on cash, the zero-down option lets you buy now and build equity instead of waiting to save.

The process process and timeline

Getting a VA loan takes longer than some other mortgage types because the VA has to verify your may be able to access. Here is the basic order: you request your Certificate of may be able to access from the VA, you find a VA-approved lender, you submit your process with the certificate, the lender orders a home appraisal, and the VA reviews the property to make sure it meets their standards.

The whole process usually takes 30–45 days from process to closing, though it can be faster or slower depending on the lender and how quickly you provide documents. The appraisal is required even with zero down — the VA wants to make sure the home is worth what you are paying for it.

One thing to know: the VA appraisal is stricter than a conventional appraisal. The home has to meet certain safety and livability standards. If the inspector finds problems, the seller may have to fix them before the sale closes. This protects you from buying a home with hidden defects, but it can delay closing if repairs are needed.

How a VA loan compares to other zero-down options

VA loans are not the only way to buy with zero down. Some conventional lenders offer zero-down mortgages, and FHA loans require only 3.5% down. However, both of those come with mortgage insurance, which VA loans do not (except for the funding fee, which is a one-time cost).

The funding fee is usually lower than the total cost of mortgage insurance over the life of a conventional or FHA loan. For example, an FHA borrower with 3.5% down pays mortgage insurance for the entire 30-year loan term, which can add up to 10% or more of the original loan amount. A VA borrower with zero down pays a one-time funding fee of 2–3% and never pays insurance again.

If you are may be able to access for a VA loan, it is almost always the cheapest zero-down option available. The main reason to choose something else would be if you are not may be able to access for the VA benefit or if you want to buy a home that exceeds your county's VA loan limit and you don't want to put down the difference.

Frequently Asked Questions

Can I use a VA loan to buy a second home or investment property?

No. VA loans are only for primary residences — homes you will live in as your main address. You cannot use the benefit to buy a vacation home, rental property, or investment property. However, you can use it multiple times to buy different primary residences over your lifetime, as long as you meet the service requirements each time.

What happens if I want to put down money but don't have much saved?

You don't have to put down anything. The zero-down option is there for exactly this reason — so you can buy without waiting to save. If you have even a small amount saved, you can put it down to lower your payment, but it is not necessary. Talk to your lender about what makes sense for your budget.

Does the funding fee get refunded if I pay off the loan early?

No. The funding fee is a one-time cost that does not come back, even if you refinance or pay off the loan ahead of schedule. However, if you refinance with a VA loan later, you may pay a new funding fee on the refinance, depending on the type of refinance and your circumstances.

Can my spouse use my VA loan benefit if I don't want to?

Only if you are deceased or have a service-connected disability rated at 0% or higher. Otherwise, the benefit is tied to your name and service record. Your spouse cannot transfer it to themselves. However, a surviving spouse of a veteran who died in service or from a service-connected disability can use the benefit independently.

What if I have bad credit — does the VA loan still require zero down?

The VA does not set a minimum credit score, but individual lenders do. Most VA-approved lenders want a credit score of at least 620, though some will work with lower scores. The zero-down feature is still available regardless of credit, but a lower score may mean a higher interest rate. Shop around with multiple lenders to find the best offer for your situation.