Military service members, Veterans, and their spouses have a unique opportunity to buy a home without making any down payment. Unfortunately, 70% of Veterans don’t know about this incredible benefit!

The secret to buying a home with 0% down is VA loans. This specialty mortgage financing is reserved for America’s finest with the goal of making homeownership more accessible for those who serve.

Intro to VA Loans

VA loans are home loans specifically designed for US military service members, Veterans, and their spouses. These loans are backed by the Department of Veterans Affairs, which reduces the risk for mortgage lenders and allows them to offer favorable home loan terms.

VA loans offer:

●     0% down payments for those who qualify based on the lender’s credit and income criteria. If you don’t qualify for 0% down, you may still qualify for a low 5-10% down.

●     Potentially lower interest rates than other home loan types.

●     More flexible qualification criteria than some other loan types.

●     Limited closing costs.

●     No private mortgage insurance (PMI) requirement. PMI is needed for most loans with down payments below 20%, but VA loans don’t require PMI (it’s worth noting that there is a funding fee for VA loans, which can be paid upfront or rolled into the loan). 

●     Lifelong reusability (while your benefit typically only applies to one property at a time, you can use it over and over as you relocate, upgrade, or downsize).

These loans are only available for your primary residence, the property you personally occupy. Interestingly, you can purchase a property with up to four units using a VA loan. So some homebuyers purchase a multi-unit property, using one unit as their primary residence and renting out the other(s) for passive income!

How to Apply for a VA Loan

You can apply for a VA loan in five simple steps:

1.    Request a Certificate of Eligibility (COE) from the VA online. This document confirms that you qualify for the VA home loan benefit based on your service.

2.    Prepare your finances. Check your credit score for free online. While specific credit score requirements may vary by lender, many look for a minimum score of 620. You should also review your current income and debts to determine how much you’re comfortable paying on a monthly mortgage.

3.    Explore VA-approved lenders. You can search for VA-approved lenders online or contact us for a list of approved lenders.

4.    Get pre-approved. You can have a lender review your finances to confirm that you’re likely to qualify for a loan, estimate how much you can borrow, and estimate the interest rate. Not only does this help with budgeting, but it also shows sellers that you are a serious buyer, making it easier for them to accept a purchase offer from you.

5.    Find your home and secure your loan. Our experienced team of real estate professionals can help you find the right home for you and make sure the property meets the VA’s minimum property requirements (MPRs).   

VA Loan FAQs

Who Qualifies for a VA Loan?

VA loans are open to active duty and discharged members who served in any branch of the US military, including:

●     Army

●     Navy

●     Air Force

●     Marine Corps

●     Coast Guard

●     Space Force

●     National Guard/Reserves

This benefit also extends to current spouses and surviving spouses of qualified members.

There are minimum requirements for time served, which vary by branch and era of service.

Is There Any Downside to a 0% Down VA Loan?

There are a few trade-offs to consider when choosing a 0% down payment loan:

●     0% down means more debt, which can result in higher mortgage payments.

●     With 0% down, you start with no immediate equity in your home. In the rare event that property values temporarily drop soon after you buy, you could owe more than your home is worth. However, real estate is a long-term investment; as long as you retain ownership and continue making payments, equity will build over time.

●     VA loans requires a VA-specific appraisal to make sure the property meets the MPRs and may require a VA-specific WDO (wood destroying organisms) report to uncover potential pests (like termites).

●     You must pay a VA loan funding fee (unless you qualify for an exemption). However, this fee is typically lower than the mortgage insurance required on other loan types with low down payments, and it can be rolled into the loan if you don’t want to pay it upfront. Under certain market conditions, you might even ask the seller for a concession to cover this cost. 

How Much Is the VA Loan Funding Fee?

The funding fee varies by down payment amount and whether you have used your VA loan benefits before. As of 2025, rates are as follows:

For first-time VA loan buyers:

●     If your down payment is below 5%, the funding fee is 2.15% of the loan amount

●     For down payments between 5% and 9.99%, the fee is 1.5%

●     For down payments of 10% or more, the fee is 1.25%

For those who have used VA benefits previously:

●     If your down payment is below 5%, the funding fee is 3.3% of the loan amount

●     For down payments between 5% and 9.99%, the fee is 1.5%

●     For down payments of 10% or more, the fee is 1.25%

There are special rates for Native American Direct Loans (NADLs) and manufactured homes.

De Costa Realty Is Here to Support You

De Costa Realty provides professional real estate services to homebuyers, sellers, investors, and renters. While we specialize in the Tampa Bay market, we directly represent clients from Tallahassee to Miami. And if you’re looking outside our region, we’re happy to provide a referral to real estate experts across the country with VA loan experience.

Whether you’re ready to start your househunt now, or you just want to explore your options for the future, contact us today to start your VA homebuying journey!