VA Loans — No Down Payment, No Monthly Mortgage Insurance

Best for

• Service members, veterans, and certain surviving spouses who meet VA's service eligibility rules
• Buyers who can carry a payment but haven't saved a large lump sum
• Anyone who has been told a zero-down loan doesn't exist — for those who qualify, this one does
• Buyers who want to avoid monthly mortgage insurance entirely

Maybe not if…

• You don't meet VA's service-based eligibility rules — this program is defined by statute and there is no way around it
• You're buying an investment property or a second home; VA is for the home you'll occupy
• You want to close very fast on a home in rough condition — the VA appraisal has property requirements
• You're planning to move again within a year or two; zero down means little equity to absorb selling costs

What you get

• No down payment required — VA states plainly that the program doesn't require one
• No monthly mortgage insurance, which is often the single biggest monthly difference versus FHA or a low-down conventional loan
• A benefit you can use more than once over a lifetime, not a one-time card
• A loan a future buyer may be able to assume, which can become a real advantage when you sell

The trade-offs (straight talk)

• There's a one-time VA funding fee on most loans; it can be financed into the loan, which means you pay interest on it for thirty years
• The funding fee amount varies with your down payment and whether you've used the benefit before — get your number from your lender, not from an article
• The VA appraisal checks the property's condition, so some homes won't pass as-is
• Zero down means you start with no equity, and an early move can leave you short after selling costs
• Your entitlement stays tied up while the loan is outstanding, which affects using the benefit again before you sell