Zero down, no mortgage insurance, and a 1% cap on lender origination charges
The VA Purchase Loan is the core VA home loan benefit. It is made by a private VA lender partner and guaranteed by the Department of Veterans Affairs, which is what lets the lender finance 100% of the purchase price with no down payment and no monthly mortgage insurance. Eligible veterans, active-duty service members, National Guard and Reserve members, and qualifying surviving spouses can use it on a 1-to-4-unit primary residence, a VA-approved condo, or new construction.
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Pre-qualification review with a licensed loan originator
Quick answer
How does the VA Purchase Loan work?
The VA Purchase Loan lets eligible veterans buy a primary residence with $0 down and no monthly mortgage insurance. Full entitlement means no VA loan limit — you can borrow whatever a lender approves. A one-time funding fee (2.15% first use under 5% down, less with more down, $0 for many disabled veterans) replaces mortgage insurance.
$0 down for eligible veterans with full entitlement
No monthly mortgage insurance, ever
Funding fee: 2.15% first use under 5% down, dropping to 1.25% at 10%+ down; $0 for exempt veterans
No VA loan limit with full entitlement
VA appraisal confirms value and Minimum Property Requirements before closing
What this means for your mortgage
With full entitlement, $0 down and no mortgage insurance mean your closing costs — not a down payment — are the main cash you need to plan for.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 31, 2026 against the VA Lenders Handbook (M26-7)
No VA loan limit for borrowers with full entitlement
Seller can pay up to 4% in concessions plus customary closing costs
Lender origination charges capped at 1% of the loan amount
Assumable by a qualified buyer, and no prepayment penalty
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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.
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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.
Live VA pricing — VA Purchase
Enter your scenario to see live wholesale VA pricing available to Simply Approved Mortgages for Florida and Colorado primary residences. Every figure shown comes from our pricing provider for the scenario you enter — nothing is estimated.
Pricing shown is based on the scenario entered and wholesale pricing available at the time of the search. It is not a rate lock, loan approval, commitment to lend, or guarantee of terms. Rates and pricing change frequently and expire. Your actual rate, APR, payment, and costs depend on a complete application, verified credit and income, property and appraisal review, and lender underwriting approval. Binding figures appear on your Loan Estimate.
Simply Approved Mortgages LLC is not affiliated with, acting on behalf of, or endorsed by the U.S. Department of Veterans Affairs (VA) or any other government agency.
Simply Approved Mortgages LLC | NMLS #2620881 is a mortgage broker and is not a direct lender. Equal Housing Opportunity.
Scenarios this tool does not price
VA construction and Native American Direct Loan pricing.
Joint VA loans with a non-veteran, non-spouse co-borrower.
Adjustable-rate VA pricing (the tool prices fixed-rate terms only).
What is the VA Purchase loan?
The VA Purchase Loan is the core benefit most veterans think of when they hear "VA loan." It is guaranteed by the U.S. Department of Veterans Affairs and made by a private VA lender partner, which is what lets the lender finance up to 100% of the purchase price with no down payment and no monthly mortgage insurance — a savings of hundreds of dollars a month compared with an FHA or low-down-payment conventional loan (VA.gov — Home Loans).
Because the VA sets no minimum credit score, lenders set their own overlays, commonly in the 580–620 range. What sets VA underwriting apart is residual income: the amount of money left over each month after the mortgage payment, taxes, insurance, debts, and basic living costs. A strong residual income can carry a file with a higher debt-to-income ratio than a conventional lender would ever approve (VA Lenders Handbook M26-7, Ch. 4).
Since the Blue Water Navy Vietnam Veterans Act of 2019, veterans with full entitlement face no VA-imposed loan limit — you can borrow whatever the lender approves with $0 down (VA.gov — Loan Limits). Veterans with reduced or partial entitlement, because an existing VA loan is still outstanding, are capped at the FHFA conforming loan limit, which is $832,750 for 2026 in most of the country.
VA Purchase key features and benefits
$0 down payment with full entitlement
No monthly mortgage insurance or PMI, ever
No VA loan limit for borrowers with full entitlement
Seller can pay up to 4% in concessions plus customary closing costs
Lender origination charges capped at 1% of the loan amount
Assumable by a qualified buyer, and no prepayment penalty
Is a VA Purchase Loan the right choice for you?
Choose VA Purchase if…
You're an eligible veteran, service member, Guard/Reserve member, or surviving spouse without savings for a down payment
You want to avoid monthly mortgage insurance entirely
Your debt-to-income ratio is above what a conventional lender allows, but your residual income is strong
You're buying a 2-to-4 unit home to live in one unit and rent the rest
You had a past bankruptcy or foreclosure and are past VA's seasoning periods
Look at another option if…
The property is an investment property or second home — VA requires owner occupancy
You've already used your entitlement on another home and haven't restored it
The home won't pass VA Minimum Property Requirements and a renovation loan isn't an option
You want to avoid the one-time funding fee entirely and don't qualify for an exemption
Have these ready and your pre-qualification review can move forward without back-and-forth. A missing COE or LES page is the most common cause of delays.
Identity & service
Government-issued photo ID for every veteran on the loan
Social Security number documentation
Certificate of Eligibility (COE), or the underlying DD-214, Statement of Service, or NGB-22 needed to obtain one
Income
Most recent Leave and Earnings Statement (LES) for active duty, or the last 30 days of pay stubs
W-2s for the past two years
Two years of federal tax returns if self-employed, commissioned, or a 25%+ business owner
Award letters for VA disability compensation, Social Security, pension, or child support income
Assets
Two months of full bank statements (all pages)
Most recent retirement or brokerage statement if using those funds for closing costs
Credit & property
Authorization for a tri-merge credit report
Written explanation letters for late payments, collections, or credit inquiries
Bankruptcy discharge or foreclosure documents if applicable
Fully executed purchase contract and all addenda
Homeowners insurance quote and, in flood zones, a flood insurance quote
Purchase-specific
Occupancy certification confirming the home will be your primary residence
Evidence of funding fee exemption, if applicable (disability rating letter, Purple Heart award, or DIC documentation)
Who an VA Purchase loan is best for
Any eligible veteran or service member buying a primary residence — especially first-time buyers who would otherwise need a down payment and monthly mortgage insurance.
VA Purchase requirements in 2026
Valid Certificate of Eligibility (COE) confirming service and entitlement
Occupy the home as your primary residence, generally within 60 days of closing
Lender credit overlay, commonly 580–620 (the VA sets no minimum score)
Meet the VA residual income requirement for your region and family size
DTI benchmark of 41%; higher is allowed with residual income 20% above the requirement
VA appraisal confirming value and Minimum Property Requirements (MPRs)
VA Purchase pros and cons
What we like
True 100% financing — the only mainstream zero-down loan besides USDA
No mortgage insurance saves hundreds a month versus FHA or low-down conventional
Residual income underwriting approves files a DTI-only test would decline
Funding fee is waived entirely for veterans receiving VA disability compensation
Trade-offs to know
One-time funding fee of 1.25%–3.30% unless you are exempt
Primary residences only — no investment properties or second homes
MPRs can rule out fixer-uppers that need work before closing
Using entitlement on one home reduces what is available for another until restored
How a VA Purchase Loan works, step by step
1
Get your Certificate of Eligibility (COE)
Order it instantly through VA.gov, ask your lender to pull it via WebLGY, or mail VA Form 26-1880. The COE confirms your entitlement and whether you're exempt from the funding fee.
2
Get pre-approved
The lender verifies income, credit, and residual income against VA's regional tables, and issues a pre-approval tied to a purchase price and payment.
3
Shop with $0 down in mind
With full entitlement there's no VA loan limit, so your buying power is set by what the lender approves and what your payment can support — not by a program ceiling.
4
VA appraisal
A VA-assigned appraiser confirms both market value and that the home meets Minimum Property Requirements (MPRs): safe, sanitary, and structurally sound (VA Lenders Handbook M26-7, Ch. 12).
5
Underwriting
Most files run through automated underwriting; manual underwriting is available when residual income and compensating factors support it.
6
Close and finance the funding fee
Unless you're exempt, the one-time VA funding fee (2.15% at $0 down on a first use) is typically financed into the loan rather than paid in cash.
What a VA purchase actually costs on a $400,000 home
Illustrative only — your rate, taxes, insurance, and funding fee status determine the real payment. Run your own numbers before writing an offer.
Purchase price
$400,000
Down payment
$0
Full entitlement required
Funding fee (2.15%, first use, $0 down)
$8,600
Financed into the loan; $0 if disability-exempt
Total loan amount
$408,600
Monthly mortgage insurance
$0
VA loans never charge PMI or MIP
Seller concessions
Up to 4%
Plus customary closing costs, negotiable in the contract
Lender origination charges
Capped at 1%
Plus a defined list of non-allowable fees the veteran cannot pay
How an VA Purchase loan helps real borrowers
Illustrative examples built from published VA rules to show how the math works. They are not customer stories, rate quotes, or guarantees — your numbers depend on credit, county limits, and pricing at the time you lock.
First-time veteran buyer using full entitlement, $0 down
The situation: A veteran earning $86,000 a year wants a $400,000 home and has no down payment saved and no interest in paying monthly mortgage insurance.
How the loan helps: With full entitlement and $0 down, the veteran finances 100% of the price. The first-use funding fee of 2.15% on a less-than-5%-down purchase is added to the loan rather than paid in cash, and there is no PMI to layer on top (VA.gov — Funding Fee and Closing Costs).
Purchase price
$400,000
Down payment
$0
Funding fee (2.15%, first use)
$8,600
Total loan amount
$408,600
Monthly mortgage insurance
$0
The outcome: The veteran closes with no down payment and no monthly mortgage insurance, financing the entire funding fee into the loan.
The situation: A veteran receiving VA compensation for a service-connected disability is buying a $350,000 home with $0 down.
How the loan helps: Veterans receiving VA disability compensation are exempt from the funding fee entirely. The Certificate of Eligibility confirms the exemption before closing (VA.gov — Funding Fee and Closing Costs).
Purchase price
$350,000
Down payment
$0
Funding fee
$0
Total loan amount
$350,000
The outcome: The exemption saves this veteran roughly $7,525 that a non-exempt first-time buyer would have financed into the loan.
The situation: A veteran who already used VA entitlement once is buying again and chooses to put 10% down on a $320,000 home to lower the fee.
How the loan helps: Putting 10% or more down drops the funding fee to 1.25% regardless of first or subsequent use — the same reduced rate a first-time buyer gets at that down payment level (VA.gov — Funding Fee and Closing Costs).
Purchase price
$320,000
Down payment (10%)
$32,000
Base loan amount
$288,000
Funding fee (1.25%)
$3,600
Total loan amount
$291,600
The outcome: The 10%-down structure cuts the funding fee from the 3.30% subsequent-use rate down to 1.25%, saving over $6,500 versus financing with less than 5% down.
Edit the fields to see your down payment, financed one-time VA funding fee, and full monthly payment. VA loans allow $0 down and carry no monthly mortgage insurance.
Down payment$0
Base loan amount$400,000
Financed VA funding fee (2.15%)$8,600
Total loan amount$408,600
Principal & interest$2,582.63
Monthly mortgage insurance$0 — VA loans never have any
Estimates only. Nothing here is an application, pre-qualification, pre-approval, rate quote, rate lock or commitment to lend. You can keep using this tool without giving us anything.
Estimates only — not a loan offer, rate lock, or commitment to lend. Taxes, insurance, and rates vary by county and credit profile.
Veteran benefits with this program
There is no down payment to assist with on a $0-down VA purchase — the benefit itself replaces the need for savings or a second lien. If you're putting money down anyway to lower the funding fee (5% drops it to 1.50%, 10%+ drops it to 1.25%), that money can still come from your own savings, a gift, or an employer program.
No. Eligible veterans with full entitlement can finance up to 100% of the purchase price with $0 down, up to what the lender approves (VA.gov — Home Loans).
Is there VA mortgage insurance?
No. VA loans never charge monthly mortgage insurance or PMI. Instead, most veterans pay a one-time funding fee, which can be financed into the loan (VA.gov — Funding Fee and Closing Costs).
What credit score do I need for a VA loan?
The VA sets no minimum credit score at all. Lenders set their own overlays, commonly 580–620 (VA Lenders Handbook M26-7).
Is there a VA loan limit?
Not for veterans with full entitlement — there has been no VA-imposed loan limit since the Blue Water Navy Vietnam Veterans Act of 2019. Limits only apply to veterans with reduced entitlement, and they track the FHFA conforming loan limit (VA.gov — Loan Limits).
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, those who would qualify but for retirement or active-duty pay, Purple Heart recipients on active duty, and certain surviving spouses. Your COE will show the exemption (VA.gov — Funding Fee and Closing Costs).
Can I buy a duplex or fourplex with a VA loan?
Yes. VA purchase loans cover 1-to-4-unit properties as long as you occupy one unit as your primary residence, generally within 60 days of closing.
Is a VA loan assumable?
Yes. A qualified buyer can assume your VA loan and its interest rate, though VA approval is required and your entitlement stays tied up unless the buyer substitutes their own.
Can I use a VA loan more than once?
Yes. Entitlement can be restored after a prior VA loan is paid off and the home sold, and a one-time restoration is available even if you keep the home. Simultaneous use of remaining entitlement is also possible, common on PCS moves.
VA Purchase where we're licensed: Florida and Colorado
We arrange residential mortgage loans only in Florida and Colorado. Each state guide runs the VA Purchase against that state's county limits, median prices, taxes and insurance, then breaks down to city-level guides.
Florida · Licensed
VA Purchase in Florida
A VA purchase loan in Florida finances 100% of the price with no down payment and no monthly mortgage insurance. Florida's practical constraints are insurance and condo approval, not the loan limit: with full entitlement there is no VA loan limit, and county caps only bind borrowers using partial entitlement.
A VA purchase loan in Colorado finances 100% of the price with no down payment and no monthly mortgage insurance. The Colorado variables are metro-district property taxes, wildfire-driven insurance underwriting, and competition on Front Range listings — not the county loan limit, which only binds partial-entitlement borrowers.
The VA funding fee schedule sets the one-time cost that replaces mortgage insurance on every VA loan. Here's the current chart, who's exempt, and how it's financed.
Veterans receiving VA disability compensation pay $0 funding fee — often the single biggest savings in the entire loan. Here's how the exemption is proven and refunded.
February 11, 2026 · 6 min read
Sources for this page
Program rules and figures on this page are taken from the primary government sources below, not from third-party summaries.
Verified against VA Lenders Handbook M26-7, Change 6 — August 12, 2026. Simply Approved Mortgages is not affiliated with or endorsed by HUD, VA, or any government agency.
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