VA home loans are for buyers who are military veterans, currently serve in the military or are qualified spouses. These loans have no down payment options and no mortgage insurance requirements.
It’s important to note that there's a funding fee between 1.4 – 3.6% of the loan amount that exists to fund the VA loan program. The percentage depends on several factors, including whether it's a purchase or a VA Streamline refinance; service status; down payment; and whether it's the first time obtaining a VA loan.
The VA makes exceptions on the funding fee for veterans and servicemembers who are eligible for or already receiving compensation for a service-connected disability; surviving spouses who meet the eligibility requirements; and active duty service members who have been awarded the Purple Heart.