For a VA loan, what is the typical down payment requirement and funding fee arrangement?

• A. Usually no down payment; a VA funding fee is charged and may be financed into the loan or paid at closing depending on eligibility and down payment.
• B. Requires a 5% down payment and no funding fee.
• C. Requires 10% down payment and the funding fee must be paid at closing.
• D. No down payment and no funding fee ever.

Answer: (A)

For a VA loan, you typically don’t have to put money down. What is common is a one-time VA funding fee that helps support the program. That fee can be financed into the loan or paid at closing, and the exact choice depends on the borrower’s eligibility (such as service category and any disability status) and whether a down payment is being made. Some borrowers may be exempt from the funding fee, such as those with a certain service-connected disability or certain surviving spouses. This combination—no required down payment and a funding fee that can be rolled into the loan or paid at closing—is what makes the described arrangement the typical one.