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Buying a Home with No Money Down – VA

Years ago, it was very easy to purchase a home with no money down, or 100% financing. Then this little thing hit called the “mortgage meltdown” hit in 2007 and everything changed where almost every program requires a borrower put some type of down payment on a purchase. However, there are still certain types of mortgages that will finance 100% of the purchase price of your home, they are a US Department of Agriculture(USDA) mortgage and a Veterans Administration(VA) mortgage. We will cover those today.

The VA Mortgage

The US Veterans Administration allows US Military Service Veterans, currently active military service personnel or their surviving spouses to purchase homes with little or no money down.

Qualification points:

  • Most lenders use a minimum credit score to qualify at 640.
  • There is the equivalent of a Mortgage Insurance Premium(MIP), basically a lump sum rolled into the loan of up to 3.3%. There is no monthly MI on these loans.
  • Again, you must have been a US Veteran, active military service, or Reservist/National Guard
  • Prior to making an application at a VA approved lender, you can find out more about your eligibility at: http://benefits.va.gov/HOMELOANS/purchaseco_certificate.asp


The greatest advantage of a VA mortgage is that it allows for 100% financing at very reasonable rates. Provided you can negotiate seller concessions into your contract, you will be able to purchase your home with 0 down. Also, for Veterans who have become disabled in the line of duty or as a result of service, there is no MIP.

To Conclude:

For military veterans, active military or their spouses, VA is a very efficient way to purchase a new home with competitive rates with no down payment.