Does a VA Loan Require a Down Payment? What Veterans Should Know

Saving for a down payment is one of the biggest hurdles in buying a home. For many veterans and service members, it does not have to be.

The short answer: most eligible borrowers can buy a home with a VA loan and put zero down. But “zero down” does not mean “zero cash.” This guide explains the VA loan down payment requirements for 2026, who qualifies for zero down, when a down payment is still a smart move, and what other costs to plan for.

Does a VA loan require a down payment?

Usually, no. The VA home loan benefit lets eligible borrowers finance up to 100% of the purchase price. That is one of the biggest perks of the program. You also do not pay monthly private mortgage insurance, which helps keep your payment lower.

The VA itself does not set a minimum down payment. Your lender and your situation decide if you need one.

VA loan zero down payment eligibility

To buy with no money down, you generally need all of the following:

• Eligible service. You must qualify for the VA benefit and have a Certificate of Eligibility. Learn how to get yours fast in our VA Certificate of Eligibility guide.
• Full entitlement. Your entitlement is the amount the VA backs for your loan. If you have never used your benefit, or you fully restored it, you likely have full entitlement. See how it works in How Many Times Can You Use a VA Loan?
• Credit and income that meet your lender’s rules. VA lenders review your credit, income, debts, and what is left over each month. Read about VA loan credit score requirements and the full VA loan requirements.
• A home that will be your primary residence. VA loans are for homes you will live in.
• A property that meets VA standards. The home must pass the VA appraisal and meet minimum property requirements. See our VA appraisal guide.

If you meet these, there is usually no down payment requirement for you.

When you might need a down payment on a VA loan

Zero down is common, but not guaranteed. You may need to put money down in these cases:

1. You only have partial entitlement. If you still have a VA loan or have not fully restored your entitlement, the VA may not back the full loan. Your lender may ask for a down payment to cover the gap.
2. The price is above what your entitlement covers. If the loan is large for your area, you may need to bring cash for the part above the limit. Check VA loan limits for Maryland, Virginia, and DC.
3. The appraisal comes in low. A VA loan cannot go above the appraised value. If the appraisal is lower than your price, you can ask the seller to lower the price, pay the difference yourself, or request a review.
4. Your lender has stricter rules. Some lenders add their own requirements on top of the VA’s. This is another reason to compare lenders.

Zero down still has costs

“No down payment” does not mean you will pay nothing at the closing table. Plan for these:

• Earnest money. Your contract may require a deposit when you make an offer. It usually counts toward your costs at closing.
• Closing costs. These include lender fees, title fees, and prepaid items. Learn who pays what in our VA loan closing costs guide.
• The VA funding fee. This is a one time fee that helps keep the program running. You can often finance it into your loan. Some veterans are exempt. See the current rates on VA.gov, and our VA funding fee guide and funding fee exemptions.
• Inspection and moving costs. These are not part of the loan, so save for them.
• Cash reserves. Many buyers keep a cushion for repairs and emergencies in the first months.

You can ask the seller to help with some of these. Read about VA seller concessions.

How a down payment can lower your VA funding fee

This is where putting money down can pay off. The funding fee drops as your down payment grows. Rates are set by the VA, so check the current VA funding fee chart before you plan.

For a first time VA purchase loan in 2026:

If you have used your VA benefit before and put down less than 5%, the fee is 3.3%. At 5% down it drops to 1.5%, and at 10% down to 1.25%.

Here is a simple example for a $400,000 home with first time use:

A down payment can also lower your monthly payment and the total interest you pay. It also gives you instant equity and a cushion if the appraisal is tight.

Zero down or put money down? How to decide

There is no single right answer. Think about your goals.

Zero down may be smart if:

• You want to keep cash for an emergency fund, repairs, or moving costs.
• You want to buy now instead of waiting years to save.
• You would rather use savings for other goals.

A down payment may be smart if:

• You want to lower your funding fee.
• You want the lowest monthly payment you can get.
• You are making an offer in a competitive market and want to look stronger.
• You want a larger cushion if the appraisal comes in low.

Ask your lender to show you the payment and total cost both ways. Then pick what fits your budget.

Where can the down payment money come from?

If you decide to put money down, you have options:

• Your savings
• Gift funds from family, with proper paperwork. Ask your lender about the rules.
• Down payment and closing cost help programs in your state

Maryland has help for buyers, including the Maryland Mortgage Program. Ask your lender if a program can work with a VA loan. See our first time home buyer page for options.

Using a VA loan to buy new construction?

Zero down can work on a new build too, but the rules and builder terms differ. Start with Can You Use a VA Loan for New Construction?