Do You Need a Down Payment for a VA Loan?

For most eligible buyers, a VA loan requires no down payment. You may need one if the price is above the appraised value, if your entitlement is partly used, or if you choose to lower the funding fee. Here's how each works.

VA guidelines do not require a down payment for eligible buyers with full entitlement, but closing costs and a funding fee may still apply. I review your entitlement, exemption status and property before explaining the funds needed for a primary home in Maine or Florida.

Not always. VA loans offer low down payment options for eligible buyers. I outline where to find a VA loan in Portland for a local home purchase. The program is structured so that lenders may be able to finance much of the purchase price, and monthly mortgage insurance often is not part of the picture. You still owe closing costs and a one time funding fee, and down payment options vary with your entitlement. For a property needing extra review, I explain buying a foreclosure with a VA loan. Does a VA loan really let me buy with little cash down? For many eligible buyers with full entitlement, a VA loan offers low down payment options. This is the headline benefit of the program. Most other loan types make you bring cash to the table. For a conventional alternative, I explain a low down payment first time buyer option with no income limit. Conventional. Often involves a down payment. FHA. Typically involves a minimum down payment. VA. Low down payment options for eligible buyers with full entitlement. That difference is part of what makes VA an appealing option to explore for a qualified veteran or service member. If you also want to compare programs, my FHA loan options are the common next choice for buyers who do not qualify for VA. What do you still pay on a VA purchase? You still pay closing costs and a one time VA funding fee. A low down payment does not mean zero cash. I explain how much house you can afford with a VA loan before you set a purchase budget. Here is the plain breakdown for a buyer in Portland, ME or anywhere in Maine and Florida. Closing costs. Title, appraisal, and lender fees, same as any loan. VA funding fee. A one time fee that can be rolled into the loan. Prepaids. Property taxes and homeowners insurance set up at closing. Many buyers ask a seller to cover part of the closing costs, which is often allowed on VA loans. That can shrink the cash you bring to almost nothing. What is the VA funding fee and can it be waived? The VA funding fee is a one time charge that helps keep the program running for future veterans. It often takes the place of the monthly mortgage insurance you would pay on other low-down-payment loans. The fee is a percentage of the loan and it can often be financed into the loan balance instead of paid in cash. Some veterans may be exempt from the fee depending on their circumstances. Because this varies by service history and use, a broker can help confirm your exact figure against your Certificate of Eligibility before you commit. Proof Low down payment options are not just a marketing line. The VA loan program is widely known for allowing eligible, fully entitled borrowers to buy without a down payment, and for not carrying monthly private mortgage insurance the way some other programs do. Because the program is structured this way at the national level, buyers tend to see similar benefits whether they are in Maine, Florida, or elsewhere. Who qualifies for a VA loan in Maine and Florida? Eligibility runs on your service record, not your location. The same VA rules generally apply for a purchase in Portland, ME or a relocation to Florida. You may qualify if you meet one of these service conditions and get a Certificate of Eligibility. Veterans. Enough qualifying active-duty service. Active service members. After a minimum continuous period. National Guard and Reserve. With qualifying service length. Surviving spouses. In certain cases. For buyers making the common Maine coast to Florida move, one broker licensed in both states keeps the file consistent. See how my VA loan and relocation planning fit together.

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I explain Maine VA home loans and Florida VA home loans in my related guides.

VA home loan down payment requirements in short

With full entitlement, VA guidelines do not require a down payment for an eligible buyer, as long as the price does not exceed the appraised value. With partial entitlement, a down payment can be required on larger loans. You still plan for closing costs and the funding fee unless you are exempt. Not everyone will qualify.

FHA vs VA loan: which needs less down?

If you're eligible for VA, it usually needs less cash down. Compare both: Maine VA loans and Maine FHA loans. Not everyone will qualify.

Related guides

See my Maine VA loan and Florida VA loan pages, compare with FHA down payment help, or build with a VA one time close construction loan.