Veteran Standing











We will discuss VA Loans, which are 0% down loans for qualified military veterans. If you are a qualified military veteran, or an active duty Servicemember of the military, the U.S. Department of Veterans Affairs (VA) provides home loans with special benefits to help you become a homeowner.

Special Benefits

One of the best perks of being an active member or veteran of the military is the VA Loan, which requires you put down as little as 0% down for a down payment, without the requirement of mortgage insurance. Conventional mortgages require minimum down payment, where buyers have to pay a percentage of the home purchase price up front when buying a home. Other programs such as FHA loans reduce the down payment required, often lowering the minimum down payment to a lower percentage than conventional mortgages.

Veteran Husband & Wife

Most loans under a 20% down payment will require mortgage insurance to protect the lender or bank. What is great about a VA Loan is that homebuyers can go in with a 0% down payment, without the need to purchase mortgage insurance. In addition, VA Loans have competitive rates that will bring additional savings to the home buyer. Closing costs, bank fees, appraisal costs (to verify the home is worth the price paid) and other fees for escrow accounts are still applicable, but can be negotiated into the VA Loan as a credit that is part of the contract.


When you are ready to purchase a home using a VA Loan, be sure to ask your realtor for a closing cost credit. This credit can be written into the contract as a percentage of the purchase price, or a specific dollar amount, that will be used for closing costs. Money can be requested as a credit for escrow account fees, and credit for taxes will often come back so that buyers leave with a check in hand when buying through a VA loan.

VA Loans do not require mortgage insurance but require a ‘funding fee’ that is a one-time fee that is added back into the mortgage (conventional mortgage insurance often is a separate fee over the first seven years of the mortgage). This one-time fee is typically 2.125%; however, if you are a disabled veteran, there may be no fee at all.


If you are eligible for a VA Loan, you may often be able to buy a home for less money per month than it costs you to rent, with far favorable terms than a conventional mortgage. You can get the loan with no money out of your pocket at all, and purchase a home that fits your needs. If you have questions or would like to discuss VA Loans further, contact Pete Thompson at (630) 481-7188 or visit You also learn more about this topic by visiting our YouTube Channel.

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