Allen Markel, REALTOR® · Texas Premier Realty

Paying for It

VA Loans — No Down Payment, No Monthly Mortgage Insurance

For eligible service members, veterans, and certain surviving spouses: no down payment required, and no monthly mortgage insurance. Here is how it actually works, and the parts nobody explains.

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The honest fit

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

The process

How it works

  1. 01

    You get your Certificate of Eligibility. It's the document that proves your entitlement to VA, and a lender can usually pull it for you in minutes.

  2. 02

    A VA-experienced lender reviews your file. Not every lender closes VA loans regularly, and the difference shows up in how smoothly it goes.

  3. 03

    They walk you through the funding fee, whether you're exempt from it, and what financing it does to your payment.

  4. 04

    We write an offer built to compete — clean terms, a lender who answers the phone, and dates that respect the VA appraisal timeline.

The trade

What you get — and what to weigh

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

Typically qualifies

  • • Service-based eligibility, proven by a Certificate of Eligibility from VA
  • • The home must be the one you'll live in
  • • The property has to meet VA's Minimum Property Requirements at appraisal
  • • A lender's own credit and income standards still apply on top of VA's rules

“Two things about this benefit are worth saying out loud. First, I have sat across from eligible buyers who never used it, because somebody told them years ago that VA loans are difficult and they believed it. Second, the funding fee is real money and it is not the same for everyone — VA exempts several groups from it entirely, including veterans receiving compensation for a service-connected disability. If you're in one of those categories and nobody has mentioned it, you're about to finance a fee you don't owe. Ask the question directly.”

Homes sold
175+Homes sold
In closed sales
$54M+In closed sales
Texas markets served
2Texas markets served
Counties served today
6Counties served today

Career totals across two Texas markets — DFW, then Greater Houston.

Questions, answered

Frequently asked questions

Eligibility is based on military service and it is set by VA, not by a lender and certainly not by me. It covers qualifying service members, veterans, National Guard and Reserve members, and certain surviving spouses, with the specific service requirements depending on when and how you served. The document that settles it is your Certificate of Eligibility. A lender can usually pull it electronically while you're on the phone, and it's the right first step if there's any doubt.

Talk to a lender who closes VA loans regularly

The difference between a lender who writes VA occasionally and one who writes them every week shows up in your closing date.Tell me where you're looking and I'll make the introduction.

Call (832) 709-2540

Talk to a lender

These are the lenders Allen works with who handle this kind of loan. For any of them you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender, loan originator, or financial advisor, and is not affiliated with or endorsed by the U.S. Department of Veterans Affairs. This page explains in general terms how the VA home loan benefit works. It is not a loan offer, a rate quote, or a determination of your eligibility or entitlement. VA program rules and fees change. Eligibility and entitlement are determined by VA; loan approval is determined by a VA-approved lender. Confirm your own situation at va.gov and with your lender.

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Allen Markel, REALTOR® · Texas Premier Realty · TREC #0658294

Questions about VA Loan

What it is

  • What is a VA loan?

    It is a mortgage from a private lender that is backed by the Department of Veterans Affairs. That backing is why it can offer features like no down payment and no monthly mortgage insurance for eligible borrowers. VA does not lend the money, so you apply through a lender experienced with the program.

  • What does the funding fee pay for?

    It is a one-time charge on a VA-backed loan that helps keep the program running without requiring down payments or monthly mortgage insurance. You can pay it at closing or finance it. Ask your lender whether you are exempt and what your figure would be.

Who it fits

  • Can a surviving spouse use a VA loan?

    Certain surviving spouses can be eligible, depending on the circumstances of the service member and VA's rules. Your Certificate of Eligibility settles it, and a lender can usually help you get it. Start with a lender who regularly closes VA loans and ask them to check.

  • What if I cannot find my service papers?

    A lender can often pull your Certificate of Eligibility electronically and tell you what documents are missing. VA also has ways to request records. Do not assume you are ineligible just because the papers are misplaced. Ask a VA-experienced lender to check.

  • Can a co-borrower who is not a veteran be on a VA loan?

    It is possible, but it can change how much of the loan VA backs and what a lender asks for, such as a down payment. Each lender explains how it works. Raise it at the start and ask for the options in writing before you decide.

  • I am on active duty and may get new orders. Can I still use a VA loan?

    Often yes, but the occupancy rules and your plans matter, since VA is for a home you will live in. Tell the lender about your timeline and possible moves up front so they can explain how the rules apply. We can also factor your timeline into the offer.

  • Who cannot use a VA loan?

    Anyone who does not meet VA's service-based eligibility rules, which VA sets, not a loan originator or a REALTOR. It is also for a home you will live in, not an investment property or second home. If you are not eligible, other programs may fit, and we can help you compare them.

How it works

  • What is a Certificate of Eligibility and how do I get one?

    It is the document that proves your entitlement to VA. A lender can usually pull it for you in minutes, or you can request it yourself. It is the first step if there is any doubt about eligibility, and it should be done before you shop.

  • What credit and earnings standards still apply on a VA loan?

    VA backs the loan, but a lender still applies its own credit and earnings standards in addition. Those vary by lender. If one lender says no, ask a second one who writes VA regularly, since the difference between lenders can be real.

  • What should I ask a VA lender?

    Ask whether you are exempt from the funding fee, how the fee would affect your payment, what your cash to close would be, how long their VA loans usually take, and how they handle the appraisal. Get the answers in writing and compare lenders.

  • How do I find a lender who closes VA loans regularly?

    Ask how many VA loans they close and how they handle appraisal and timing issues. A lender who closes them every week usually runs smoother than one who does them rarely. We work with lenders who handle this kind of loan and can introduce you.

  • What does a loan originator do that a REALTOR does not?

    A loan originator is licensed and regulated, takes your information, and runs it through the system to match you to an appropriate loan program. You do not need to know in advance which loan fits, only to give accurate information. A REALTOR does not approve or price loans. We help you use the originator's numbers to shop and write offers.

Costs to weigh

  • Does a down payment change my VA funding fee?

    Yes, the amount of the fee varies with your down payment and whether you have used the benefit before. Some borrowers are exempt. Ask your lender to show your number with and without a down payment so you can see the tradeoff.

  • Is financing the funding fee a good idea?

    It lowers what you pay at closing but adds to the loan balance, so you pay interest on it for the life of the loan. Paying it upfront costs cash now. Which is better depends on your cash and plans, so ask your lender to show both.

  • Does VA limit what a seller can pay toward my costs?

    VA has rules about which costs a seller can pay and how much. Your lender knows the limits. If you want to ask for seller help, we structure it within the rules and confirm them with your lender before the offer goes in.

  • Is zero down wise if I might move in a year or two?

    It can leave you short, since you start with no equity and selling costs can exceed what you have built. If your plans are uncertain, think carefully. Talk to us about your timeline and have a lender run the numbers before you decide.

  • Does a VA loan have monthly mortgage insurance?

    No monthly mortgage insurance applies on a VA loan, which is a major monthly difference versus FHA or a low-down conventional loan. There is a one-time funding fee instead, unless you are exempt. Ask your loan originator to show how that compares in the total cost.

  • How much can a seller contribute on a VA loan?

    VA caps seller concessions at 4%. A seller concession can go toward closing costs or the funding fee, but it is a negotiating point that depends on the price and the market. Closing costs can also be paid by you or a mix. Ask a loan originator how the cap applies, and we can structure the offer around it.

  • If I put nothing down, what cash do I still need?

    VA purchase loans allow 0% down when the price is not above what the home appraises for, but you still plan for closing costs, which generally run 2% to 5% of the price, plus prepaid taxes and insurance, and earnest money. A loan originator can give you your cash to close figure. Ask for it specifically.

Property and appraisal questions

  • What if the VA appraisal says repairs are needed?

    The home usually has to meet the repair standards before the loan can close. That can mean asking the seller to fix items or renegotiating. If the seller refuses, your contract may let you walk. We flag likely problems early so you are not surprised.

  • Is the VA appraisal the same as a home inspection?

    No. The appraisal checks value and VA's property requirements, while an inspection is for you and looks at the whole condition. Plan on your own inspection no matter what the appraisal says.

  • Can I buy a fixer-upper with a VA loan?

    It is harder, because the appraisal checks the property against minimum standards and a house in rough condition may not pass as it is. Some renovation options exist. Tell us early if you like homes that need work so we can look at your options.

  • What happens if the appraisal comes in below the price?

    You can ask the seller to lower the price, bring cash for the difference, challenge the appraisal, or walk away if the contract allows. What fits depends on the terms and your finances. We help you decide quickly because the dates keep running.

Offers and timing

  • How do you make a VA offer competitive?

    A clean contract, a lender who answers the phone, realistic dates for the VA appraisal, and a house that is unlikely to fail it. We make sure the listing agent can reach your lender directly. Talk to us before you tour so we focus on homes that fit.

  • Does a VA loan take longer to close?

    It can, mainly because of the appraisal timeline, so we leave room in the contract. A lender who writes VA regularly makes a real difference. Ask your lender for a realistic timeline and we will build the dates around it.

  • How do I get my VA entitlement back when I sell?

    Selling the home and paying off the loan generally frees it up. If a buyer assumes your loan, your entitlement can stay tied up unless an eligible veteran substitutes theirs. Ask a lender and VA how it applies to your case before you sell.

  • Can a buyer assume my VA loan when I sell?

    A future buyer may be able to, with approval. That can be an advantage if rates are higher when you sell, but your entitlement stays tied up unless an eligible veteran substitutes. Our assumable loans page covers how it works.

Compared with other options

  • How does a VA loan compare with FHA?

    VA can mean nothing down and no monthly mortgage insurance, while FHA asks for a down payment and carries its own insurance. FHA has no service requirement. If you are eligible for both, ask a lender to price them side by side.

  • How does VA compare with a conventional loan with a small down payment?

    VA often does better on monthly payment because it has no monthly mortgage insurance, though it has a funding fee. Conventional can be strong for good credit and has no service requirement. Ask a lender to compare both for your file.

  • Is a VA loan cheaper than conventional?

    It can be for eligible buyers, because there is no monthly mortgage insurance, but the funding fee and your credit can change the picture. It depends on your file. Ask a loan originator to price both and compare the payment and the total cost.

  • How does VA compare with USDA?

    VA has no monthly mortgage insurance, while USDA has an annual fee, so VA may cost less, though it requires service-based eligibility. USDA needs an eligible address and household earnings under the limit. If you qualify for both, have one loan originator price them side by side.

Getting started

  • Do sellers really prefer other buyers over VA buyers?

    It is mostly an old reputation. What decides it is a clean contract, dates that fit the seller and a lender who looks able to close on time. We control those. We write the offer carefully and make sure the listing agent has a lender to call.

  • How do I get started with a VA loan?

    Ask a lender who closes VA loans regularly to pull your Certificate of Eligibility and review your file. Then get pre-approved and let us shop with a real number. Tell us where you are looking and we can make the introduction.

  • Why have I never used my VA benefit?

    Many eligible buyers hold off because someone told them years ago that VA loans are difficult. With a loan originator who writes VA loans regularly and a clean offer, that is often not the case. The benefit can also be used more than once. Check where you stand with an experienced loan originator, because waiting does not improve your options.

  • What is the difference between pre-qualification and pre-approval on a VA loan?

    A pre-qualification is a quick estimate from what you tell a loan originator. A pre-approval means they reviewed your documents, credit and Certificate of Eligibility and issued a letter stating what they are prepared to lend, subject to conditions. Sellers trust the pre-approval more, so that is the one to get before you tour homes.

  • What should I avoid between pre-approval and closing?

    Avoid new debt, large purchases on credit, missed payments and unexplained money moves. The loan file is checked again before closing, and changes can cause delays. Call your loan originator before any significant financial decision, and tell us if your plans or timeline shift so we can keep the contract dates workable.

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