Published Jun 25, 2026, 5:31 PM EDT
No PMI. Competitive rates. But also fee traps, entitlement pitfalls, appraisal quirks and a refund most disabled veterans never claim.
The VA home loan is one of the most valuable benefits available to service members, veterans and surviving spouses — and one of the least understood. Millions of eligible borrowers have never used it. Many who have used it made decisions that cost them thousands because nobody explained the details upfront. Here are 10 things that matter before you sign anything.
1. You Don’t Need a Down Payment, But That Doesn’t Mean You Shouldn’t Make One
No down payment is required for Department of Veterans Affairs loans when you have full entitlement, and no private mortgage insurance (PMI) is required, regardless of how much you put down. But a down payment of 5 percent or more reduces your funding fee from 2.15 percent to 1.50 percent on a first use. On a $400,000 home, that saves $2,600 in fees. A 10 percent down payment reduces it further to 1.25 percent. Run the math before deciding that zero down is automatically the right call.
