VA loans: often $0 down and no monthly mortgage insurance
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, service members, and some surviving spouses. With full entitlement, many buyers purchase a primary home with no down payment and no monthly PMI. A one-time VA funding fee usually applies unless you are exempt.
NMLS #1660690 · Reviewed by UMortgage+
Key facts
Figures below are typical industry ranges for education. Exact overlays, credit floors, and limits change and must be confirmed with a loan officer against current NEXA Lending guidelines and your scenario.
| Minimum down payment (typical) | Often 0% with sufficient entitlement on a primary residence. |
|---|---|
| Credit / residual income | VA focuses on residual income and lender credit overlays; there is no single VA minimum score published like FHA’s chart. |
| Mortgage insurance | No monthly PMI/MIP; funding fee instead (unless exempt). |
| Funding fee | Varies by first vs. subsequent use and down payment; often financable. Confirm current VA schedule. |
| Occupancy | Primary residence (with VA rules for active-duty / certain exceptions). |
| Refinance options | Cash-out and VA IRRRL (streamline) available when you already have a VA loan. |
Who it's best for
- Eligible veterans and service members buying a primary home
- Surviving spouses with eligibility
- Borrowers who want to preserve cash (0% down)
- Homeowners refinancing an existing VA loan via IRRRL
Who should look elsewhere
- Buyers without VA eligibility
- Pure investment property purchases
- Situations where a specialty Non-QM product fits better than VA occupancy rules
Pros and cons
Pros
- Often $0 down
- No monthly mortgage insurance
- Competitive rates historically for qualified veterans
- Assumable loans and IRRRL streamline refinance option
Cons
- Funding fee unless exempt
- Must occupy as primary residence
- Condo and builder approval requirements
- Entitlement limits if you already have a VA loan outstanding
How it works in 4 steps
Discovery call or apply
Share your goals, credit picture, and timeline. We check which programs and pricing scenarios fit.
Compare side by side
See rate, payment, cash to close, and mortgage insurance options before you choose.
Underwriting
We lock when you're ready, order any needed appraisal, and clear conditions.
Close & fund
Sign documents and fund. We stay in touch with you and your agent or title company.
Illustrative payment on a $300,000 VA purchase ($0 down)
Assume $300,000 price, $0 down, loan amount $300,000 before any financed funding fee. At a sample note rate of 6.5% (placeholder only): P&I is about $1,896/month before taxes and insurance—and with no monthly PMI.
On $400,000 at $0 down and the same sample 6.5%: P&I about $2,528/month before taxes and insurance.
Not a rate quote, APR disclosure, or commitment to lend. Actual rates, points, and payments depend on credit, occupancy, property, lock period, and market conditions on the day you lock. Ask a loan officer for a personalized Loan Estimate.
Frequently asked questions
Who is eligible for a VA loan?
Eligible veterans, active-duty service members, and some surviving spouses with a valid Certificate of Eligibility (COE). Entitlement and prior use of VA benefits affect how much you can borrow with $0 down. We help you pull or verify your COE early.
Is a VA loan really zero down?
Often yes for a primary residence when you have full entitlement (or enough remaining entitlement). You still need funds for closing costs unless the seller, lender credits, or concessions cover them. Funding fee rules apply unless you are exempt.
What is the VA funding fee, and who is exempt?
The funding fee is a one-time VA charge that varies by down payment, first-time vs. subsequent use, and service category. Many disabled veterans and some surviving spouses are exempt. The fee can often be financed into the loan. Confirm the current VA fee schedule for your case.
Can I use a VA loan more than once?
Yes. Entitlement can be restored after you sell and pay off a VA loan, and partial entitlement may support another purchase while you still own a VA-financed home, subject to remaining entitlement and lender limits.
Does VA require mortgage insurance?
No monthly PMI or MIP like conventional/FHA. Instead, most non-exempt borrowers pay the one-time funding fee. That structure is a major reason VA payments can look attractive.
Can VA loans be used for condos or new construction?
Yes when the condo project is VA-approved and the builder/property meets VA requirements. One-Time Close construction and renovation options may be available depending on current product menus—ask a loan officer what NEXA is offering today.
Educational content only. Guidelines change. Confirm details with UMortgage+ powered by NEXA Lending, LLC, before you apply.
Check your VA Certificate of Eligibility
a loan officer can help pull your COE and price a purchase or IRRRL. Call (480) 233-7897.