If you are an eligible veteran, active-duty service member, or certain surviving spouse, a VA loan can buy your primary home with no down payment and no monthly mortgage insurance. In exchange, most borrowers pay a one-time funding fee, which many veterans with a service-connected disability rating skip entirely. It only works on the home you actually live in, and any condo has to be on the VA's approved list first. Here is how the whole thing actually works.
This is a benefit you earned, not a favor. I want you to understand every part of it, including the part most people never hear about.
Generally, veterans who met minimum active-duty service requirements, most active-duty service members currently serving, many National Guard and Reserve members, and certain surviving spouses of veterans who died in service or from a service-connected disability. The exact rule depends on when and how you served, so I do not guess. Your Certificate of Eligibility is the scoreboard, and I can usually pull it for you fast.
Conventional loans charge private mortgage insurance every month until you build enough equity, usually put down to protect the lender if you put down less than 20 percent. FHA loans charge a monthly mortgage insurance premium for most of the life of the loan. VA loans do neither. The VA's guarantee to the lender replaces that monthly cost entirely, which is one of the real financial advantages of the benefit.
Instead of monthly mortgage insurance, most VA borrowers pay a one-time funding fee, paid to the VA, not to me or the lender. On a first use with no money down it currently runs 2.15 percent of the loan amount, dropping to 1.5 percent at 5 percent down and 1.25 percent at 10 percent down. If you have used a VA loan before, those rates step up a bit on a purchase, currently 3.3 percent at zero down before dropping the same way as you put more down. Most veterans finance the fee into the loan instead of paying cash at closing. If you carry a service-connected disability rating, you very likely do not pay it at all, and that exemption gets missed more than it should.
Entitlement is the VA's backing behind your loan, the thing that makes zero down possible. Full entitlement generally means no cap tied to your local loan limit for a well-qualified veteran. Sell and pay off a VA loan, and that entitlement can be restored to full strength. Keep a home and buy again, and remaining entitlement can sometimes fund a second VA loan while the first one is still open. I have a full page that walks through exactly how reuse works, because the math depends entirely on your own history. See how VA benefit reuse works →
VA loans are built for the home you actually live in, not a vacation place and not a straight rental from day one. The rule generally expects you to move in within a reasonable window after closing, often around 60 days. Life changes, and a home you bought honestly as your primary can become a rental down the road, that happens constantly and is fine. What is not fine is buying with VA financing when you never intended to live there. If your real plan is a second home or an investment property, I will point you to the right tool instead.
A VA loan on a condo only works if the building itself is on the VA's approved list, a separate check from your own approval as a borrower. Plenty of Florida buildings are not approved, often for the same reserve, insurance, or litigation reasons that sink conventional condo financing. I run this check the moment I know a building's name, before you fall for a unit that cannot close the way you planned. More on how condo approval works →
“Zero down does not mean zero to think about. I would rather you understand the funding fee and the occupancy rule before closing than find out at the table.”Tony Fitzgerald · The Mortgage Jedi
No single loan is the right answer for everyone. Here is how the three programs I get asked about most actually stack up.
| Feature | VA loan | Conventional | FHA |
|---|---|---|---|
| Down payment | Can be 0 percent for eligible veterans with enough entitlement. | As low as 3 percent for some first-time buyer programs, 20 percent avoids monthly PMI. | As low as 3.5 percent with qualifying credit. |
| Monthly insurance | None. No monthly mortgage insurance of any kind. | Monthly PMI required below 20 percent down, cancels once you reach enough equity. | Monthly mortgage insurance premium, usually for the life of the loan. |
| Upfront fee | One-time funding fee, waived with a qualifying disability rating. | None required upfront. | Upfront mortgage insurance premium, financed into most loans. |
| Occupancy | Primary residence only. | Primary, second home, or investment, with different terms for each. | Primary residence only. |
| Who it fits | Eligible veterans, active-duty service members, and qualifying surviving spouses buying a home to live in. | Buyers with steady income and some down payment cash who want the widest choice of property types. | Buyers with lower credit scores or thinner down payment savings who still want a primary home. |
Not sure which lane fits your file? See every loan option I work with →
This benefit is strong, but strong does not mean automatic. Here is where it genuinely wins, and where I would tell you to look elsewhere.
Answer these and I can usually tell you where you stand before you send me a single document.
The questions I get asked most, answered first.
Usually not. If you are an eligible veteran, active-duty service member, or qualifying surviving spouse with enough entitlement, a VA loan can finance your primary home with no down payment at all. Down payment percentages like 5 or 10 percent still matter for one thing, they lower your funding fee, but they are not required to get the loan.
It is a one-time fee paid to the VA, not to me or the lender, that takes the place of monthly mortgage insurance. On a first use with no down payment it currently runs 2.15 percent of the loan amount, dropping to 1.5 percent at 5 percent down and 1.25 percent at 10 percent down. Most veterans finance it into the loan rather than paying it in cash, and if you have a service-connected disability rating, you likely do not pay it at all.
Yes. Your entitlement can be restored after you sell and pay off a VA loan, and in many cases remaining entitlement can fund a second VA loan while you still own the first home. It is not a one-time benefit. I break the full mechanics down on a separate page because the answer depends on your specific history. Read how VA benefit reuse works →
A VA loan on a condo only works if the building itself is on the VA's approved project list, separate from your own approval as a borrower. Plenty of Florida buildings are not on it, often for the same reserve, insurance, or litigation reasons that trip up conventional condo loans. I check the building the moment I know its name, before you write an offer. See how condo approval works →
The VA itself does not publish a minimum credit score. Individual lenders set their own overlay, and VA lending is generally more flexible on credit than conventional financing because the VA is guaranteeing part of the loan. I work with 160+ wholesale lenders, so if one lender's overlay does not fit your file, there is usually another that will look at it differently.
Your Certificate of Eligibility, or COE, is the VA's own record of your entitlement, and most people have never seen theirs. I can usually request it for you directly with your DD-214 or statement of service, often the same day you call, so a missing document never has to be the reason you do not start.
A Sarasota-area note. With MacDill Air Force Base just up the road in Tampa, I talk with a steady stream of active-duty families, retirees, and veterans looking at Sarasota, Bradenton, Lakewood Ranch, Venice, North Port, and Parrish. Two things trip up VA buyers here more than anywhere else. First, this coast is condo-heavy, and a lot of buildings on Siesta Key, Longboat Key, and downtown Sarasota are not on the VA's approved list, often for the same reserve and insurance issues hitting conventional condo loans right now. Second, Florida's property insurance market has gotten expensive enough that I want a quote in hand before you write an offer, not after, because it changes what payment you can actually carry. Neither one is a reason to skip the benefit. Both are reasons to check early.
So humans, search engines, and AI assistants all get it right.
Tell me how you served and what home you actually want to live in, and I will tell you exactly where your entitlement, your funding fee, and your file stand.
For education and illustration only. This page describes general VA loan program guidelines and fee schedules that change over time and are not a quote, rate, offer, or commitment to lend. Program details, funding fee percentages, and entitlement calculations depend on your complete application, your service history, your Certificate of Eligibility, and credit approval. Mention of the VA loan program is factual and does not imply government endorsement of Tony Fitzgerald or 1st Response Mortgage. Tony Fitzgerald NMLS #1284924 · 1st Response Mortgage is a registered DBA of Barrett Financial Group, L.L.C., NMLS #181106 · FL License #MLD1880 · Equal Housing Lender · This is not a commitment to lend. All loans subject to credit approval.
Tony Fitzgerald · NMLS #1284924 · 1st Response Mortgage is a registered DBA of Barrett Financial Group, L.L.C. · NMLS #181106 · Florida License #MLD1880 · 2701 East Insight Way, Suite 150, Chandler, AZ 85286 · Licensed in Florida · Equal Housing Opportunity Lender