Do VA Loans Require a Down Payment? Zero-Down Benefits Explained

For most buyers, the idea of buying a home without a down payment sounds too good to be true. But for eligible veterans, service members, and surviving spouses, it’s a real and powerful benefit of the VA loan program.

If you’ve asked, “Do VA loans require a down payment?” the answer is usually no. In fact, VA loans are among the last remaining true zero-down mortgage options in the U.S. housing market. But like all great programs, there are important details, exceptions, and compliance nuances to understand.

• Most VA loans do not require a down payment, offering one of the few true $0-down paths to homeownership.
• No private mortgage insurance (PMI) is required, saving hundreds monthly compared to FHA or conventional.
• Down payments may be needed in rare cases: exceeding county loan limits or low appraisals.
• Eligibility is based on military service history, not just credit—but lender overlays may still apply.

This article breaks down how VA loans work without a down payment, when you might still need one, and how to maximize your benefits—including how to purchase a home commission-free through reAlpha.

VA loans are backed by the U.S. Department of Veterans Affairs, which guarantees a portion of the loan to private lenders. That guarantee gives lenders the confidence to offer loans with no down payment and no PMI (Private Mortgage Insurance).

Here’s why that matters:

• No down payment means you can buy sooner, without waiting to save 5%, 10%, or 20%.
• No PMI means lower monthly payments compared to FHA or conventional.
• Easier approval for borrowers with past credit hiccups, bankruptcy, or limited assets.

"You served your country. This benefit helps you own a home without sacrificing years of savings."

While most VA loans are zero-down, there are a few exceptions:

1. You exceed your VA entitlement: If you're buying above your county loan limit and have reduced entitlement, a down payment may be needed.
2. The home appraises for less than the purchase price: VA will only guarantee the appraised value. You may need to cover the difference.
3. Lender requirements: Some lenders may require down payments in higher-risk situations, even though the VA itself doesn't.

Pro Tip: Always ask your lender to walk you through their overlay policies. 

Eligibility is based on military service. You may qualify if you:

• Served 90 consecutive days during wartime
• Served 181 days during peacetime
• Have more than 6 years in the National Guard or Reserves
• Are the surviving spouse of a service member who died in the line of duty or from a service-related injury.

Note: Most lenders will still have credit score and income requirements. Be My Neighbor (NMLS #1743790) can help you find VA-friendly lenders who work with first-time buyers and unique situations.

The buying process can be stressful enough—why pay more than you need to?

That’s where reAlpha comes in. As a commission-free real estate platform, reAlpha helps VA buyers keep more money in their pockets by removing traditional agent commissions from the equation.

Benefits of buying with reAlpha:

• No buyer agent commission fees
• Transparency-first platform
• Tech-enabled matching to VA-compliant listings and lenders

Combine that with VA's no-down-payment advantage, and you're on the most cost-effective path to homeownership.

VA loans unlock a $0 down path to homeownership—but too many buyers miss out on thousands in savings due to confusion, lender restrictions, or high agent fees.

Here’s your winning formula:

• Use Be My Neighbor (NMLS #1743790) to shop VA-friendly lenders
• Buy your home commission-free with reAlpha
• Ask questions, compare options, and keep your costs low

Your service earned you these benefits. Now it’s time to use them wisely.

‍Yes. VA loans are one of the only mortgage types that allow 100% financing with no down payment required for most eligible buyers.

‍You may need to cover the difference out-of-pocket. VA loans only cover the appraised amount.

‍Yes. VA loans don’t eliminate closing costs, but sellers can pay up to 4% to help with these expenses.

‍No. reAlpha is a commission-free real estate platform, not a lender. It connects you with compliant partners, including lenders like Be My Neighbor.

‍Nope. VA loans never require private mortgage insurance, even with no down payment.

‍Yes, unless you’re exempt (e.g., receiving VA disability compensation). The one-time VA funding fee ranges from 1.25% to 3.3%, and can often be rolled into the loan.

• reAlpha is not a mortgage lender, broker, or originator. It is a commission-free real estate platform.
• Be My Neighbor Mortgage NMLS #1743790.
• This blog is intended for educational purposes and does not constitute legal, financial, or lending advice.
• VA loan eligibility and terms may vary by lender. Always verify rates, APRs, and terms directly with a licensed mortgage provider.