For a VA loan, borrowers generally do not need to make a down payment. The Department of Veterans Affairs (VA) guarantees a portion of the loan, allowing eligible veterans, service members, and certain spouses to obtain financing with favorable terms, including no down payment requirement.
VA loans are designed to help eligible individuals achieve homeownership more easily, and one of the significant benefits is the ability to finance up to 100% of the home's purchase price without requiring a down payment. This feature can significantly reduce the upfront costs associated with buying a home, making homeownership more accessible for veterans and active-duty service members.
However, while a down payment is not required for a VA loan, borrowers may still need to pay certain closing costs and fees associated with the loan, such as appraisal fees, origination fees, and prepaid expenses like property taxes and homeowners insurance. It's essential for borrowers to budget for these additional costs when planning to purchase a home with a VA loan.
Overall, the ability to purchase a home with no down payment is one of the key advantages of VA loans, allowing eligible veterans and service members to achieve their homeownership goals with greater ease and flexibility.