A VA-backed purchase loan can offer eligible borrowers the option to buy with no down payment and does not use conventional private mortgage insurance (PMI). The actual monthly payment still depends on the home price, interest rate, loan term, property taxes, homeowners insurance, any HOA dues, and whether a VA funding fee applies.
Model the payment
Use the mortgage calculator for principal, interest, taxes, and insurance, then verify VA-specific fees and eligibility with your lender and VA.
Open Mortgage Calculator →VA eligibility and lender approval are separate
VA determines whether you qualify for the home-loan benefit and issues the Certificate of Eligibility. A private lender still evaluates the loan application, including income, debts, credit history, assets, and the property.
VA itself does not set a minimum credit score for the home-loan benefit, although lenders may apply their own score requirements.
Can a VA purchase loan have zero down?
Eligible borrowers with sufficient entitlement may be able to purchase without a down payment, subject to lender approval, the purchase price or appraised value, and other program requirements. Zero down is an option, not a guarantee that every transaction will close with no cash required.
The VA funding fee
Many VA borrowers pay a one-time funding fee. The amount depends on factors such as the type of loan, down payment, and whether the benefit has been used before. Some borrowers are exempt. The fee can often be financed into the loan, which increases the starting balance, or paid at closing.
Use VA's current funding-fee table rather than a cached percentage because the applicable amount depends on the transaction and exemption status.
VA loans and mortgage insurance
VA-backed loans do not require monthly PMI. That does not mean the total monthly housing payment is limited to principal and interest. Taxes, homeowners insurance, HOA dues, and other property costs can still be material.
Property taxes and veteran exemptions
Property-tax rules are state and local. Some jurisdictions provide exemptions or reductions for certain veterans, but eligibility and benefit amounts vary. Do not assume a disability rating automatically produces the same property-tax result in every state.
For a purchase decision, confirm the actual tax treatment with the local taxing authority or a qualified local professional.
How to compare a VA quote with another mortgage
- Use the same purchase price and expected holding period.
- Compare the interest rate, APR, lender charges, and points.
- Include any VA funding fee that applies.
- Include taxes, insurance, and HOA dues for the same property.
- Compare cash to close as well as monthly payment.
- Review the official Loan Estimate for each offer.
Bottom line
VA financing can be valuable for eligible borrowers, particularly because of its down-payment structure and lack of monthly PMI. The correct comparison is still transaction-specific: compare the full Loan Estimate, funding-fee treatment, monthly housing costs, and cash to close.