VA Home Purchase Loans: $0 Down, No PMI

Who is eligible?

Most veterans with 90 consecutive days of active wartime service or 181 days of peacetime service qualify, as do active-duty members after 90 days, and Guard/Reserve members with six years of service or 90 days of qualifying active-duty orders. Certain surviving spouses of service members who died in service or from a service-connected disability are also eligible. A discharge other than dishonorable is generally required. See the full eligibility guide →

No down payment, no PMI

With full entitlement, VA guarantees a portion of the loan so the lender does not require a down payment or monthly mortgage insurance. On a $400,000 home, conventional financing with 5% down would mean $20,000 at closing plus PMI each month; FHA would mean 3.5% down plus a monthly mortgage insurance premium for most of the loan’s life. VA requires neither.

VA loan limits in 2026

Since 2020, veterans with full entitlement have no VA loan limit — the amount you can borrow with $0 down is set by what you qualify for. Loan limits only apply if you have partial entitlement (for example, you still have a VA loan on another home). In that case the 2026 county conforming limit — $832,750 in most counties and up to $1,249,125 in high-cost areas — determines how much you can borrow before a down payment is needed.

How VA underwriting really works

VA looks at two numbers: your debt-to-income ratio (41% is a guideline, not a hard cap) and your residual income — the money left over each month after the mortgage, taxes, insurance, debts and an estimate of living costs. Residual income is why VA loans have historically had some of the lowest default rates of any loan type. Shirley’s VA loans have no minimum credit score requirement; your full picture matters more than a single number.

Funding fee

The VA funding fee is a one-time charge that keeps the program running. For 2026: 2.15% with less than 5% down, 1.5% with 5% to less than 10% down, 1.25% with 10% or more down on first use; 3.3% with less than 5% down on subsequent use. Veterans receiving VA disability compensation, Purple Heart recipients on active duty and qualifying surviving spouses are exempt. Use the funding fee calculator →

What you can buy

• Single-family homes, townhomes and VA-approved condos
• 2–4 unit properties when you live in one unit
• New construction — see VA construction loans
• Manufactured homes on a permanent foundation (with conditions)

The home must be your primary residence. Vacation homes and pure investment properties are not eligible — see when conventional makes sense or DSCR investor loans.