How to Buy a Home with $0 Down (VA Loan Explained)

How VA Zero Down Works

The VA guarantees a portion of the loan to the lender.

This guarantee reduces risk and allows 100% financing.

You must still qualify based on:

• Income
• Credit
• Residual income standards
• Appraisal value

Closing Cost Options

VA rules limit what veterans can pay.

Options include:

• Seller paying closing costs
• Lender credits
• Financing the funding fee

Closing Cost Rules:

https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/

Seller Concessions

VA allows sellers to contribute up to 4% of the purchase price in concessions.

This may include:

• Prepaid taxes
• Insurance
• Debt payoff
• Funding fee

Common Zero Down Myths

Myth: You need perfect credit

Reality: VA loans are flexible with a minimum credit score of 580

Myth: The process takes too long

Reality: VA loans are comparable to other loan processes

Myth: Zero down means you’ll overpay

Reality: The VA appraisal establishes market value

Example Purchase Scenario

Purchase Price: $350,000

Down Payment: $0

Funding Fee: Financed

Seller Pays: $8,000 in closing costs

Result: Minimal cash to close while preserving savings.

This blog is for informational purposes only and does not constitute legal, tax, or other financial advice. Consumers should seek the advice of a financial advisor/professional, tax consultant or legal counsel for their specific needs.