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Should Veterans Ever Make a Down Payment?

VA loans have amazing benefits for veterans.

Rightfully so, our nation's heroes deserve easy access to financing a brand new home. One of the benefits of being approved for a VA loan is the lack of a down payment requirement.

Veterans do not have to make a down payment, which is great since a lot of people struggle with saving up for a new home.

However, are there benefits to making a down payment? Should veterans ever consider this option? Any veteran who wants to lower their funding fee can make a down payment. The funding fee simply a one-time fee used to lower the cost that U.S. taxpayers have to make to fund the VA loan program. If you choose not to make a down payment, the funding fee can be rolled into the mortgage. By making a down payment, you can take care of the funding fee and shorten the term of your mortgage. This means you can build equity faster and pay your home off quicker.

For first-time homebuyers, the funding fee is usually up to 2.3% of the total home price.

For subsequent homebuyers, the funding fee can soar to 3.6%!

Now, there is a way for the funding fee to be waived. That depends on the veteran's disability percentage.

You can find this info on the Certificate of Eligibility you receive from applying for a VA loan.

To properly assess your options and determine whether it'd be best for you to make a down payment or not, you should speak to one of our loan officers.

Give us a call today at (901) 759-4400 to be paired with one of our loan officers to learn more.


VA Funding Fee Chart If you want to calculate the funding fee you'll potentially pay, refer to this chart for more information.


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