Zero down.Earned, not given.
The VA loan explained the way a lender underwrites it: the funding fee in dollars, the residual income test for Texas, the 4% concession cap and what full entitlement really means in DFW.
Our comparative assessment: cash saved 40%, ease 25%, speed 15%, fewer strings 20%. Full rankings
A VA loan is a mortgage from a private lender that the Department of Veterans Affairs guarantees, so eligible buyers can purchase with no down payment as long as the price is not above the appraised value. There is no PMI or MIP. Instead there is a one-time funding fee (2.15% of the loan on first use with less than 5% down), and veterans receiving VA disability compensation pay $0. With full entitlement, VA sets no loan limit: the ceiling is what the buyer qualifies for and what the appraisal supports.
Who qualifies.
- Currently serving members with 90 continuous days of active duty.
- Veterans who served since August 2, 1990 (Gulf War era to today): 24 continuous months, or the full period called to active duty (at least 90 days), or 90 days if discharged under a qualifying exception.
- Peacetime eras: 181 days of service.
- National Guard and Selected Reserve: 6 creditable years, or 90 days of non-training active duty.
- Surviving spouses receiving DIC, and spouses of service members who are MIA or POW.
- The home is the veteran's residence: VA requires moving in within a reasonable time.
- Income and debts meet VA's standards (41% DTI benchmark plus residual income) and the lender's standards. VA sets no minimum credit score.
How it works.
Get the COE
The Certificate of Eligibility can be requested online at VA.gov, through the lender (Web LGY) or by mail with VA Form 26-1880. Veterans need a DD214; active duty members need a statement of service.
Pre-approval with a VA lender
The lender reviews income, debts and credit against VA's 41% DTI benchmark and the residual income table for the South region, which includes Texas.
Offer with the right concessions
Ordinary closing-cost credits from the seller are not limited by VA. Seller concessions beyond that are capped at 4% of the reasonable value.
VA appraisal
VA issues a Notice of Value. If the price is above the appraised value, the zero-down structure no longer works without covering the difference.
Underwriting and funding fee
The funding fee is calculated on the loan amount. It is the only fee that can be financed on a purchase. Exempt buyers pay $0.
Close and move in
The veteran occupies the home within a reasonable time after closing, as VA requires.
The funding fee in real dollars: $400,000 home, 0% down
Example only. Funding fee rates effective since April 7, 2023, per VA.gov (page updated October 5, 2026): under 5% down 2.15% first use, 3.3% after; 5% or more down 1.5%; 10% or more down 1.25%. On the same home with 5% down ($20,000), the loan is $380,000 and the fee is 1.5%, or $5,700. Taxes, insurance and interest rates vary and are not shown.
Direct VA.gov links for the COE and funding fee, a document checklist (DD214 or statement of service), the South region residual income table and a vetted VA lender match.
What works
- No down payment as long as the price is not above the appraised value. VA says nearly 90% of VA-backed loans are made with no down payment.
- No PMI or MIP, ever.
- Veterans receiving VA disability compensation pay no funding fee.
- With full entitlement, there is no VA loan limit.
- Up to 4 units if the veteran lives in one of them.
- VA sets no minimum credit score.
What it costs you
- The funding fee is real money: $8,600 on a $400,000 loan at first use, $13,200 on later use with under 5% down.
- Financing the fee raises the loan balance from day one.
- Seller concessions are capped at 4% of reasonable value.
- Residual income can block a loan even when the DTI looks fine.
- Primary residence only: VA requires the veteran to move in within a reasonable time.
The part nobody explains.
Residual income is the test most buyers never hear about. For loans of $80,000 or more in VA's South region (Texas), the monthly minimum left after housing and debts is: family of 1 $441, 2 $738, 3 $889, 4 $1,003, 5 $1,039, plus $80 for each extra member up to 7. A family of 4 needs at least $1,003 a month left over.
The 4% cap applies to seller concessions, not to ordinary closing costs. VA does not limit a seller paying normal closing costs. On a $400,000 reasonable value, concessions top out at $16,000 on top of those closing costs.
A service member with a proposed or memorandum disability rating before closing is exempt from the funding fee, and so is an active-duty member with proof of a Purple Heart on or before closing. Timing that paperwork before closing can be worth thousands.
Federal rules allow one extra unit for each additional eligible veteran co-owner, beyond the 4-unit standard.
Full entitlement removes the VA limit, but a veteran who still has a VA loan open and only remaining entitlement is held to the county loan limit.
Get the packet.
The official links are not on this page on purpose. They come in one email, organized, with what to do with each one and in what order.
- Direct VA.gov links for the COE and funding fee, a document checklist (DD214 or statement of service), the South region residual income table and a vetted VA lender match.
- Every official link for this program, plus the links for every guide you explored here
- A match with a Texava-vetted lender who closes this program
- A direct reply from Albert in English or Spanish
Where should I send it?
Your packet is on its way.
Every guide you explore before you leave gets added to the next packet. Keep reading below.
Programs stack.
The Texas VLB home loan pairs with VA financing and adds a Texas rate program, with a discount for a 30%+ disability rating.
Texas / TSAHC / Hero professions7.2Homes for Texas HeroesHomes for Texas Heroes includes veterans and works with VA loans, with down payment assistance up to 5% of the loan.
Strategy / 2 to 4 units7.4House hacking (2 to 4 units)VA allows up to 4 units with the veteran living in one, which turns zero down into a rental property strategy.
Side by side.
The Texava Score weighs what matters to a buyer: cash saved 40%, ease to qualify 25%, speed and paperwork 15%, fewer strings 20%.
Asked most.
Is there a VA loan limit in Collin, Denton or Dallas County?+
With full entitlement, no. VA sets no limit as long as the buyer can afford the payment and the appraisal supports the price. With remaining entitlement, the county loan limit applies.
What credit score does VA require?+
VA sets no minimum credit score. Borrowers meet VA's standards and the lender's standards, and lenders set their own minimums.
Who does not pay the funding fee?+
Veterans receiving VA compensation for a service-connected disability; veterans eligible for compensation who receive retirement or active-duty pay instead; surviving spouses receiving DIC; service members with a proposed or memorandum rating before closing; and active-duty members with proof of a Purple Heart on or before closing.
Can a VA loan buy a duplex or fourplex?+
Yes. VA allows up to 4 units as long as the veteran lives there.
How is residual income calculated?+
It is the money left each month after the housing payment and debts. VA compares it to a table by family size and region. Texas is in the South region, where a family of 3 needs at least $889 a month on loans of $80,000 or more.
Can the seller pay my closing costs?+
VA does not limit ordinary closing-cost credits. Seller concessions beyond those are capped at 4% of the reasonable value on the VA Notice of Value.
The value compounds.
Texas rate program, up to $832,750
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