{"id":5804,"date":"2026-04-06T09:14:43","date_gmt":"2026-04-06T15:14:43","guid":{"rendered":"https:\/\/www.veteransloans.com\/resources\/?p=5804"},"modified":"2026-04-06T09:14:46","modified_gmt":"2026-04-06T15:14:46","slug":"the-zero-down-va-loan-should-you-put-money-down-when-you-dont-have-to","status":"publish","type":"post","link":"https:\/\/www.veteransloans.com\/resources\/the-zero-down-va-loan-should-you-put-money-down-when-you-dont-have-to\/","title":{"rendered":"The Zero Down VA Loan – Should You Put Money Down When You Don\u2019t Have To?"},"content":{"rendered":"[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]\n

While the VA loan allows for <\/span>0% down<\/b>, putting <\/span>5% down<\/b> is often the “sweet spot” in 2026. It slashes the <\/span>VA Funding Fee<\/b> from <\/span>3.3% to 1.5%<\/b> for repeat users and makes your offer more competitive in markets with appraisal gaps. However, if you are <\/span>10% or more disability-exempt<\/b>, $0 down is almost always the superior wealth-building move.<\/span><\/p>\n

Should You Put Money Down on a VA Loan? (Quick Answer)<\/b><\/h2>\n

Yes.<\/b> While not required, putting money down on a VA loan is a strategic move to lower monthly payments and reduce the upfront VA Funding Fee. For non-exempt Veterans, a <\/span>5% down payment<\/b> is the most common recommendation to balance cash liquidity with long-term interest savings.<\/span><\/p>\n

2026 VA Funding Fee: How Much Can You Save?<\/b><\/h2>\n

The <\/span>VA Funding Fee<\/b><\/a> is a mandatory cost that supports the program. In 2026, the fee tiers change based on your down payment amount.<\/span><\/p>\n

2026 VA Funding Fee Table<\/b><\/h3>\n\n\n\n\n\n\n
Down Payment<\/b><\/td>\nFirst-Time Use<\/b><\/td>\nSubsequent (Repeat) Use<\/b><\/td>\n<\/tr>\n
0% Down<\/b><\/td>\n2.15%<\/span><\/td>\n3.30%<\/span><\/td>\n<\/tr>\n
5% Down<\/b><\/td>\n1.50%<\/span><\/td>\n1.50%<\/span><\/td>\n<\/tr>\n
10% Down<\/b><\/td>\n1.25%<\/span><\/td>\n1.25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The “5% Rule”:<\/b> If you are a subsequent user, a 5% down payment cuts your fee by more than half. On a <\/span>$500,000<\/b> mortgage, this reduces your fee from <\/span>$16,500 to $7,500<\/b>\u2014saving you <\/span>$9,000<\/b> instantly.<\/span><\/p>\n

How Does a Down Payment Help with “Appraisal Gaps”?<\/b><\/h2>\n

In competitive 2026 markets, homes often sell for more than they appraise for. This is known as an <\/span>Appraisal Gap<\/b>.<\/span><\/p>\n