Quick Answer
The VA loan is the strongest mortgage product in the country for eligible buyers: zero down payment, no monthly mortgage insurance, competitive rates, no loan limit with full entitlement, and assumability. There is a one-time funding fee that disabled veterans can have waived. For military families buying in San Antonio near JBSA, it is the financing we reach for first.
Get help planning your VA loan and its benefits.
VA loan benefits include: zero down payment, no monthly mortgage insurance, competitive interest rates (often the lowest available), no VA loan limit with full entitlement, limited closing costs, and assumability. The only cost is a one-time VA funding fee (1.25-3.3%) that can be waived for disabled veterans. VA loans are the best mortgage product available for eligible buyers. Plan my VA loan or military move.
Zero Down Payment
The biggest VA benefit is simple: you can finance 100% of the home's price. No down payment required. On a $400,000 home, that means $0 out of pocket for the down payment, instead of about $14,000 with FHA or $20,000 with conventional. This is one of the most powerful ways for veterans and military families to start building wealth.
No Monthly Mortgage Insurance
FHA charges mortgage insurance for the life of most loans. Conventional loans charge it until you reach 20% equity. VA loans skip monthly mortgage insurance entirely. That saves you about $150 to $300 every month compared to other low-down-payment loans. Over 10 years, that is $18,000 to $36,000 back in your pocket.
Lowest Rates Available
VA loans consistently offer the lowest interest rates of any mortgage product. Because the VA guarantees a portion of the loan, lenders can offer rates 0.25% to 0.5% below conventional and FHA rates. On a $400,000 loan, a 0.25% rate difference saves you about $60/month or $21,600 over 30 years.
No Loan Limit With Full Entitlement
If you have full VA entitlement, there is no cap on how much you can borrow. The VA does not limit the loan amount. Lenders still consider your income and credit, but you are not capped by a county loan limit. This makes VA loans ideal for purchasing higher-priced homes in competitive markets.
Assumability
VA loans are assumable, meaning someone buying your home can take over your existing VA loan. In a rising rate environment, a low-rate VA loan can be a powerful selling point. The buyer simply needs to qualify with the lender and pay a small assumption fee. This can help you sell your home faster and at a better price.
Funding Fee: The Only Cost (And It Can Be Waived)
Instead of monthly mortgage insurance, VA charges a one-time funding fee:
- First use, $0 down: 2.15% of the loan amount
- Subsequent use, $0 down: 3.3% of the loan amount
- Waived entirely for disabled veterans and qualifying surviving spouses
The funding fee can be rolled into the loan amount so you do not pay it out of pocket.
Seller Can Pay Your Closing Costs
VA loans allow sellers to contribute up to 4% of the purchase price toward the buyer's closing costs and prepaids, including the VA funding fee. That 4% is a limit on seller-paid concessions, not a cap on your total closing costs, which can run higher depending on price point and prepaids. Used well, it can still let a qualified buyer close with very little cash out of pocket.
