0% Down Payment

In a typical mortgage scenario, buyers are often required to put down a certain percentage of the home’s purchase price as a down payment, which can range from 3% to 20% or more. However, with a VA loan, qualified borrowers have the option to finance up to 100% of the home’s value. This means they can purchase a home without the need to save for years for a large down payment.

Eligibility for this 0% down payment option through a VA loan is based on service in the U.S. military. This includes veterans, active duty service members, members of the National Guard and Reserves, and surviving spouses of service members who died in the line of duty or from a service-connected disability. Applicants must meet service duration requirements and have a discharge other than dishonorable.

While there’s no down payment required, VA loans have loan limits which depend on the county where the home is located. There’s also a funding fee, a one-time charge that can be rolled into the loan amount. The fee varies based on the loan amount and the borrower’s service history.

The purchased property must meet certain VA standards for safety and habitability and must be the borrower’s primary residence. This ensures that veterans and their families have a safe and secure place to live.

VA loans are more flexible with credit scores and debt-to-income ratios compared to conventional loans. Lenders generally look for a stable income and a reasonable ability to repay the loan, but the requirements are typically more accommodating for veterans.