The published rules
These are programme rules, not Plinth policy. Where a figure is reset each year — conforming limits, FHA county limits, the USDA fee, the VA fee table — the mechanism is described and the number is not, because a stale number on a lending page is worse than no number.
- Eligibility
- Established by service history, not by income or by the property. You obtain a Certificate of Eligibility from the VA; a lender can usually pull it electronically.
- Down payment
- No down payment is required in most cases. That is a guaranty rule, not a promotion.
- Mortgage insurance
- None. Not upfront, not monthly. The VA guaranty replaces it.
- Funding fee
- A one-time fee that varies with the size of your down payment and with whether this is a first or a subsequent use of the benefit. It can be financed. It is waived for veterans receiving compensation for a service-connected disability, for certain surviving spouses, and for Purple Heart recipients serving on active duty. The current fee table is published by the VA.
- Entitlement and limits
- With full entitlement there is no VA loan limit on the guaranty. If part of your entitlement is tied up in another VA loan, county loan limits come back into play for the remaining amount.
- The property
- A VA appraisal, and the home must meet the VA minimum property requirements. It must be a home you intend to occupy.
What it will not do
- It is not an investment property programme. Occupancy is a condition.
- Zero down means you start with no equity, so selling early can cost you money even in a flat market.
- The funding fee on a subsequent use is higher than on a first use. That is worth knowing before a second VA purchase.
What to find out before you go further
- 01Whether you hold full or partial entitlement.
- 02Whether the funding fee is waived in your case.
- 03Whether a small down payment lowers your funding fee tier enough to be worth making.