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Using a $0-Down VA Loan to Purchase a Home

If you are a member of the U.S. Military, you may qualify for a $0-down home loan. Details are below, but first, I want to thank and honor all who served our great country.

Highest respect and gratitude to you, our United States Military Veterans and current members of the United States Military!

The Basics for Qualifying for a VA Home Loan


Perfect credit not required. The most recent 12 months are the most important. If you had difficulty in the past, but are back on track paying your creditors on time, now, that is what underwriting wants to see. Old collections and charge-offs might be ignored, depending on the balance and age.

The mortgage lenders pulls a tri-merge credit report with all three credit scores. The lowest score is thrown out. The middle score is used for qualifying. 640 score preferred, but some lenders go lower.


Need a two-year history of employment. Use your gross income, before any deductions. Your loan officer will qualify your debt-to-income ratio, which is usually not over 50% (although there are exceptions).


With a VA loan, there is no down payment. The VA Funding Fee is rolled into the loan. If the seller pays some or all of your closing costs, then you may be able to get into a home with little cash to close.


Your new house payment has to make sense for your income. You don’t want to put yourself in a position where you can’t afford the payment or where you can’t have a good quality of life because of the payment. However, in some areas, rent is as high as a mortgage payment.

My best recommendation is to contact a mortgage broker who is licensed in your state. Brokers have more options than banks. Brokers can often get a lower interest rate than a direct lender can offer. Brokers can usually close faster than big banks. Brokers are better, and yes, I am biased, because I am a mortgage broker, licensed in California and Washington states.

May God bless our country, our U.S. Military and Veterans — and, all of us, God’s beloved children.

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