Can you get a VA home loan with zero money down? Yes! And it can be a smart financial choice.
Since 1944, VA home loans have been available with no down payment required. Over 23 million VA mortgages have been provided since the program began. With no down payment, your VA mortgage can finance up to 100% of the purchase price of the home you want to buy.
VA loans come with funding fees that help the program to continue. Some Vets are eligible to have these fees waived, but even if you need to pay a VA Funding Fee, it can be rolled into your mortgage. If you get ANY DISABILITY PAY you MAY BE ELIGIBLE for NO FUNDING FEE. You can really buy a home with a VA mortgage with zero money down.
VA loans don’t require mortgage insurance either. Even if this is your first home purchase you are eligible for a no money down VA mortgage and you won’t have high added mortgage insurance payments every month, either.
Does it mean that I'm broke if I get a VA home loan with zero money down?
No: some of the smartest Vets we know are taking advantage of this great feature of VA home loans. Vets have bought the homes they want for their families with zero down, excellent interest rates, and up to 100% financing. Why pay a 5%, 10% or 20% down payment when you don’t have to? You can put the money toward home renovations, furnishings, or invest the money and earn interest, dividends, and profit.
What are some of the other benefits of a VA mortgage?
You can choose a fixed rate VA mortgage or a VA adjustable rate mortgage (ARM) although interest rates on VA home loans are currently low enough that an ARM doesn’t make much financial sense. Having a no money down VA mortgage can give you flexibility in the amount you can borrow and in your monthly payments.
You can have an affordable monthly mortgage payment and buy the home you want with a no money down VA home mortgage. We’ve got more good news, too: after January 2020, the VA’s county loan limits are going away. That means that even in high-priced areas like Los Angeles, Ventura, and Orange Counties, you can get a 15 year or 30 year VA mortgage on the home you want with no money down.