VA loans: eligibility, zero-down financing, and closing costs

What does the COE tell you?

A Certificate of Eligibility helps establish eligibility for the benefit. It is not a loan approval. The lender still reviews income, credit, debts, occupancy, and the property. Bring your service information and details of any existing or previous VA loan.

Does zero down mean no cash?

A down payment may not be required when the price and appraisal support the loan and entitlement is sufficient. Closing costs may still apply. VA purchase loans do not require monthly mortgage insurance, but a funding fee may apply unless you qualify for an exemption. Ask for your own fee and cash-to-close breakdown.

Questions before making an offer

Ask how entitlement, prior VA use, the appraisal, and occupancy affect your purchase. Discuss what happens if the price exceeds appraised value. Request a written comparison of financing a funding fee versus paying it upfront, if applicable.

Prepare for your conversation

Write down your comfortable monthly payment, available savings, property plans, and timing. Ask which documents are needed for your income type and use the secure application portal for financial records. For a home purchase, leave room in the budget for maintenance and expenses beyond the mortgage.

Questions worth asking

• What could change my eligibility or costs before closing?
• What cash will I need at closing, and what should remain afterward?
• Which alternative would you compare with this loan, and why?