Do VA loans really require zero down?
Yes. For eligible borrowers with full entitlement, a VA purchase loan can be made with no down payment and no monthly mortgage insurance. That is the core advantage of the program. You still need funds for closing costs, prepaid taxes and insurance, and earnest money, though seller concessions or lender credits frequently cover part or all of that.
Yes. For eligible borrowers with full entitlement, a VA purchase loan can be made with no down payment and no monthly mortgage insurance. That is the core advantage of the program. You still need funds for closing costs, prepaid taxes and insurance, and earnest money, though seller concessions or lender credits frequently cover part or all of that.
Detailed answer
Zero down is real, and it is the reason the VA program consistently outperforms the alternatives for eligible buyers. No conventional or FHA product matches the combination of no down payment and no monthly mortgage insurance. The financing fits the full purchase price, subject to the appraised value and to qualifying on income and credit. What zero down does not mean is zero cash. A Utah purchase still involves earnest money at contract, an appraisal fee, and closing costs including title, recording, and prepaid property taxes and homeowners insurance. On a $475,000 Layton purchase that can run several thousand dollars. Three levers reduce it: seller-paid closing costs, which VA rules permit generously, lender credits in exchange for a slightly higher rate, and financing the funding fee into the loan rather than paying it at closing. Many Davis County veterans close with almost nothing out of pocket by combining those three, but the costs still exist and appear on the closing disclosure.
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