Should You Put a Down Payment on a VA Loan?

While a Down Payment Is Not Required, It Might Save You Money

You don't need to make a down payment when you buy a house with a Department of Veterans Affairs (VA) loan. This makes homeownership more affordable for Veterans and active-duty military personnel who qualify. But is buying a house with no money down a good idea when you have a VA loan?

Making a Down Payment Can Lower Your Funding Fee

When you use a VA loan to buy a house, you will have to pay a funding fee. This fee is a one-time payment you'll make at closing or roll into your mortgage. How much you pay depends on the size of your down payment. See this table from VA.gov:

The fee is based on the amount of your loan and whether or not this is the first time you've received a VA loan. If you borrow $250,000 to buy your first house with a down payment of less than 5%, you will pay $5,375. If you make a down payment of 10% or more, you will pay $3,125.

Making a Down Payment Can Save You Money on Interest Payments

A down payment reduces the amount you’ll need to borrow, which can save you money on interest payments over the life of the loan. It also starts you on a path to building equity in your home.

Look at the big picture of your finances before you make a down payment. You may want to keep cash in reserve to pay for unforeseen expenses or emergency repairs. If you have high-interest debt, it may make more sense to pay down this debt rather than to put cash down on your house.

Freedom Mortgage is a top VA lender in the United States, according to Inside Mortgage Finance, Jan.-Jun., 2025.

Freedom Mortgage is not a financial advisor. The ideas outlined above are for informational purposes only and are not investment or financial advice. Consult a financial advisor before making important personal financial decisions, and consult a tax advisor for information regarding the deductibility of interest and charges.

Last reviewed and updated February 2025 by Freedom Mortgage.