Ask people if they would buy a home, and most will likely say they might think about it. What stops them from saying yes is almost always the down payment. Saving for a down payment is one of the biggest barriers to homeownership. For a lot of people, scraping together even 10% of a home’s price can take years of consistent work. But veterans and active-duty service members have access to a benefit that lets them buy a house with zero money down: the VA loan. 

The 0% down is real, as the federal VA loan program has offered VA home loans in Texas and across the United States for over eight decades. Taking out a VA loan remains one of the most convenient homebuying tools available to those who’ve served in the armed forces. 

Here’s how it works and what to know before applying.

VA Loans and the Zero-Down Advantage

A VA loan is a mortgage that is supported by the U.S. Department of Veterans Affairs. Private lenders carry the loan, but the VA guarantees part of it. Because the guarantee reduces the risk to the lenders, VA loans are offered with more favorable terms than most conventional loans.

There is no requirement for a down payment, no need for private mortgage insurance (PMI), and interest rates are lower as well. This is one of the most valuable advantages for veterans and active-duty members looking to secure their own piece of property without the typical financial hurdles.

With a VA loan, eligible borrowers can finance the full purchase price of a home. They don’t need to put money down as long as the borrower has full VA entitlement and the sale price matches or is below the appraised value. 

If you have full entitlement, meaning you haven’t used your VA loan benefit before or you restored it after paying off a previous VA loan, there will be no cap on how much you can borrow at zero down; it depends on what the lender approves based on income, credit, and the appraised value.

Note: If you are only partially entitled (e.g., you have a prior VA loan active), loan limits may apply. In 2026, the baseline is $832,750 for a single-family home. If the loan exceeds your entitlement, you may need a down payment on the uncovered portion.

Who Qualifies for These Loans?

It’s not necessary that every veteran will qualify for a VA loan. There are specific requirements in place that you must meet in order to be eligible to apply:

  • You must have served on active duty in the armed forces, such as the Army, Navy, Air Force, Marines, Space Force, or Coast Guard, with a minimum of 90 consecutive days of active duty during wartime or 181 continuous days of active duty during peacetime.
  • You must have a separation status (discharged or released) that is not dishonorable.
  • You must obtain a Certificate of Eligibility (COE) to present to the VA-approved lender.

National Guard and Reserve members must have served for at least six years or 90 days of active duty under federal orders (Title 10 or Title 32). 

VA Funding Fee

Although there is no PMI, VA loans carry a one-time fee that goes straight to the Department of Veterans Affairs and helps sustain the VA program so taxpayers do not have to bear the full cost.

The funding fee applies to every VA purchase and refinance loan.

  • For the fully entitled buyers, the fee is 2.15% of the loan amount.
  • Subsequent users pay a higher rate of 3.30%.
  • The fee for a VA Streamline refinance is flat at 0.5%. 

Some borrowers pay nothing at all. Veterans receiving VA disability compensation, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty service members and Purple Heart recipients are exempt. 

So, Is a VA Loan Right for You?

The 0% down payment on a VA loan is an earned benefit that’s backed by the federal government, with a host of benefits. But every veteran’s situation is different; if you’ve served and you’re thinking about buying a home, you can do it without draining your savings. Talk to a home loan specialist, have them look at your finances, and find your way forward.