Do You Need a Down Payment for a VA Loan?
Here’s a question I get all the time: Do I need a down payment for a VA loan?
You absolutely do not! Let’s go through a quick breakdown of what the VA loan actually is.
First of all, you must be an eligible veteran to acquire a VA loan.
In northern Colorado, there is a zero down payment option for VA loans up to $484,000. There’s also no monthly private mortgage insurance (PMI) payment—for most other loans, you need to pay around a 20% down payment to avoid PMI.
VA loans are for primary residences only. You aren’t allowed to use it for investment properties, and you shouldn’t use it for fixer-uppers since the VA has strict rules about property conditions.
There’s an upfront fee you pay the VA that’s based on the military branch you were in, what you’re using as a down payment (if any), and whether you’ve used a VA loan before. These are all things you’ll want to speak with your loan officer about.
If you have any questions or need further information, feel free to reach out to me at 970-672-0010. I look forward to hearing from you soon.