VA is one of the most-used first-time-buyer mortgages in America for a reason: $0 down, no VA-set minimum credit score, 100% gift-fundable, and the seller can pay part of your closing costs. Here's exactly how it works in 2026.
No-obligation VA pre-qualification review.
First-time veteran buyers can use a VA loan with $0 down and no mortgage insurance, get a Certificate of Eligibility for free through VA.gov, and ask the seller for up to 4% in concessions toward closing costs — which is how most first-time VA buyers get to closing with minimal cash out of pocket.
You don't need a down payment saved up — you need a Certificate of Eligibility, a pre-approval, and a realistic price range.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 24, 2026 against the VA Lenders Handbook (M26-7)
Start my pre-approvalOn a $400k home, that's $0 down with full entitlement — vs $80,000 for a conventional 20% down.
Family member, employer, charity, or an eligible homebuyer assistance program. 100% of your down payment or closing costs can be gifted.
Sellers can pay up to 4% of the sale price in concessions, plus customary closing costs and discount points outside that cap.
Lenders set their own overlay, commonly 580–620. Past bankruptcy, foreclosure, or thin credit can still qualify with re-established credit.
Unlike HomeReady or Home Possible, VA has no income cap.
The 41% DTI figure is a guideline, not a hard cap — strong residual income can support a higher ratio.
Paid to the escrow or title company when your offer is accepted, then credited back to you at closing. It is not an extra cost.
The VA appraisal is ordered once you are under contract. Some lenders collect it upfront; it is credited on your final settlement statement.
Lender, title, recording and escrow items, typically 2–4% of the price. Gift funds, seller concessions and lender credits can cover these.
A one-time fee that can be financed into the loan instead of paid in cash, and is waived for veterans with a service-connected disability rating.
Figures are illustrative. See our VA closing cost breakdown for line-by-line detail. Not a rate quote, an approval, or a commitment to lend.
For eligible veterans and service members, a VA loan is generally the easiest first-time buyer mortgage because it requires no down payment and sets no minimum credit score — lenders set their own overlay, commonly 580–620. Gift funds can cover 100% of the down payment or closing costs, and the seller can pay up to 4% of the sale price in concessions plus customary closing costs.
VA itself does not offer a discounted rate for first-time buyers, but most state first-time buyer assistance programs (offered by state housing finance agencies) layer with VA financing to provide grants, deferred second mortgages, or reduced rates.
With $0 down, a VA loan closing cost is typically 2–4% of the purchase price plus the one-time VA funding fee (2.15% on a first-use purchase, waived entirely for veterans with a service-connected disability rating). With gift funds and up to 4% in seller concessions, many first-time veteran buyers close with little to no cash out of pocket.
Start a VA pre-qualification with a licensed loan originator. Licensed in Colorado and Florida.
SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
Hi — I'm SAM with Simply Approved Mortgages. Ask a question about using a VA loan as a first-time buyer, or pick one of the popular questions beside this box.
AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
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