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NMLS #1028986 · Go Direct Lenders, LLC "DBA" Veterans Direct
📞 888-239-6161

VA Purchase Loan

Buy Your Dream Home With Zero Down Payment and No Mortgage Insurance

Get Pre-Approved → Talk to a VA Specialist
$0
Down Payment
$0
PMI Ever
No
Credit Score Minimum
Lifetime
Reusable Benefit

Why Choose VA Purchase Loan

A VA purchase loan helps you buy a home with favorable terms that most other loan programs can't match. You can purchase a home with zero down payment and no private mortgage insurance—meaning more money stays in your pocket every month.

Nearly 90% of VA-backed loans are made with no down payment requirement. You can use your VA loan benefit to purchase single-family homes, condominiums, townhouses, or newly constructed homes.

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Zero Down Payment

Buy a home without saving for a down payment. VA doesn't require one, and lenders typically follow VA guidelines.

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No Mortgage Insurance

Skip PMI entirely. This saves hundreds per month compared to conventional loans. That's thousands of dollars saved annually.

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Competitive Interest Rates

VA loans typically offer rates about 0.25% lower than conventional loans. The VA backing reduces lender risk, which saves you money.

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No Credit Score Minimum

The VA doesn't require a minimum credit score. Your lender may set their own requirements, but you have flexibility.

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Reusable for Life

Use your VA loan benefit multiple times. Pay off one home, restore your entitlement, and buy again whenever you want.

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Lenient Credit Standards

Lenders work with borrowers across a wide credit range. Past financial challenges like bankruptcy or foreclosure don't automatically disqualify you.

Eligibility & Requirements

To qualify for a VA purchase loan, you need to meet the VA's eligibility requirements and your lender's standards.

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Certificate of Eligibility

You must qualify for a VA-backed home loan COE based on your military service. We can retrieve this electronically in most cases.

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Credit Standards

You must meet your lender's credit requirements. While the VA doesn't set a minimum credit score, most lenders require 580-620+.

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Income Requirements

You must meet your lender's income requirements and show the ability to pay the monthly mortgage payment. There's no income limit.

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Owner-Occupancy

You must intend to live in the home you're purchasing. This is a primary residence requirement for VA purchase loans.

Property Types You Can Purchase

VA purchase loans are flexible and let you buy various property types:

VA Loan Limits & Entitlement

Your VA loan entitlement is the amount the VA will guarantee in case you default. Each veteran has a guaranty entitlement with a minimum of $36,000 and a maximum of 25% of the county loan limit. The VA guaranty effectively reduces your loan-to-value ratio to 75%, making lenders more comfortable lending to you without a down payment.

VA Funding Fee Breakdown

The VA Funding Fee is a one-time cost that helps sustain the VA loan program. It can be financed into your loan, so you don't pay out of pocket at closing.

Current VA Funding Fee Rates (Effective April 7, 2023)

Down Payment First-Time Use Subsequent Use
Less than 5% 2.15% 3.3%
5% or more 1.5% 1.5%
10% or more 1.25% 1.25%

Funding Fee Examples

Here's what you'd pay based on loan amount (zero down payment example):

Home Price Loan Amount First-Time Fee (2.15%) Subsequent Fee (3.3%)
$200,000 $200,000 $4,300 $6,600
$350,000 $350,000 $7,525 $11,550
$500,000 $500,000 $10,750 $16,500

Who Qualifies for Funding Fee Exemption?

You're exempt from paying the VA funding fee if:

✅ Funding Fee EXEMPT

  • You're receiving VA compensation for a service-connected disability
  • You're eligible for compensation but receiving retirement or active-duty pay instead
  • You're a Purple Heart recipient
  • You have a service-connected disability rating (0% or more)
  • You're an eligible surviving spouse receiving Dependency and Indemnity Compensation (DIC)

💡 Funding Fee Payment Options

  • Finance it into your loan and pay over 30 years
  • Pay the full fee at closing out of pocket
  • Combination of both methods
  • Most veterans finance the fee into their loan
  • This spreads the cost over time at mortgage rates
💡 Pro Tip:

Nearly all veterans finance the funding fee into their loan. This means you add it to your loan amount and pay it over 30 years. This is almost always better than paying thousands out of pocket at closing.

The Home Buying Process

Here's what to expect when using your VA purchase loan benefit:

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1. Get Your Certificate of Eligibility

Request your COE through VA.gov, your lender, or by mail. We can usually pull it electronically in minutes. This proves to sellers and lenders that you qualify for the VA benefit.

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2. Get Pre-Approved

Talk to a lender about how much you can borrow. We'll review your income, credit, and debts. Pre-approval helps sellers take your offer seriously.

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3. Find Your Home

Work with a real estate agent to find the right property. VA purchase loans can be used on most residential properties across the U.S.

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4. Make an Offer

Submit an offer on your chosen property. Include your pre-approval letter to show the seller you're a qualified buyer.

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5. VA Appraisal & Inspection

The VA will order an appraisal to determine the home's value. You should also get a home inspection to identify any issues.

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6. Underwriting & Closing

The lender reviews all documents and performs final underwriting. You'll sign closing documents and receive your keys!

Common Questions

Do I really need zero down payment?
The VA doesn't require a down payment, so technically you can purchase a home with zero down. However, some lenders may require a down payment depending on your financial circumstances. Most veterans use the zero-down benefit, but you have the option to put money down if you want.
Can I use my VA loan if I've filed for bankruptcy?
Yes! Your military service qualifies you for VA benefits regardless of past financial challenges. However, your lender may have specific requirements—typically a minimum time since discharge (like 2 years) and evidence of re-established credit. We work with borrowers in your situation.
Can I use my VA loan multiple times?
Yes! Your VA loan benefit is a lifetime benefit. Once you sell your first home and pay off the VA loan, your entitlement is restored. You can then use it again to purchase another home. Many veterans use this benefit 2, 3, or even more times throughout their lives.
What's the difference between VA loan entitlement and loan limit?
Entitlement is what the VA guarantees (minimum $36,000, up to 25% of county loan limit). Loan limit is based on Fannie Mae/Freddie Mac conforming limits by county. With full entitlement and meeting your lender's financial guidelines, you can borrow beyond the conforming limit with a down payment.
Can I buy a condo with a VA loan?
Yes, but the condo project must be on the VA-approved list. If it's not on the list, the project must be submitted to the VA for review to ensure it complies with VA requirements. Check with your lender or us to verify condo eligibility.
How long does the VA purchase process take?
The entire process typically takes 30-45 days from offer acceptance to closing. This includes appraisal, underwriting, and loan approval. Your dedicated loan officer will keep things moving and ensure nothing falls through the cracks.
Do I have to pay closing costs?
Closing costs include things like appraisal, title insurance, recording fees, and lender fees. You can negotiate with the seller to cover some or all of them. The VA limits seller concessions to no more than 4% of the home's value. Only the VA funding fee can be financed into your loan.
What's the minimum credit score needed?
The VA doesn't require a minimum credit score. However, your lender will set their own requirements—typically 580-620. If your score is lower, don't worry. We work with borrowers across a wide credit range and can often help even with lower scores.
Can I buy multiple properties at the same time?
Yes, if you have sufficient remaining entitlement. You can use your VA benefit to own multiple properties as long as you occupy at least one as your primary residence and have enough entitlement available. Most veterans don't have enough entitlement for this, but it's possible with strong financial qualifications.

Ready to Buy Your Dream Home?

Start your VA home buying journey today. We'll help you understand what you qualify for and get you pre-approved to make an offer with confidence.

Start Your Application →