Your benefit starts with eligibility.
A VA-backed purchase loan is made through a private lender with a VA guaranty. Your Certificate of Eligibility helps establish your eligibility for the benefit. The lender still evaluates your finances and the proposed property.
VA’s purchase guidance requires eligible borrowers to meet applicable credit and income standards and intend to live in the home. A COE is one part of the process, not a lending decision.
What to compare.
- Down payment. Eligible borrowers may be able to purchase without a down payment, subject to entitlement, appraisal, and lender requirements.
- Mortgage insurance. VA-backed loans do not require monthly PMI or MIP.
- Funding fee. A VA funding fee may apply, and some borrowers are exempt. Confirm your status and current fees.
- Closing costs. No down payment does not mean no closing costs or no cash needed.
- Property and occupancy. Discuss the proposed home, intended occupancy, and appraisal requirements before making assumptions.
Ask for an apples-to-apples comparison.
Compare the rate, APR, lender fees, credits, and total cash to close for the same loan assumptions. If a funding fee is financed, include it in the balance you compare. Ashley can help put those numbers in context.
For additional home-shopping context, MoJo’s Kansas City VA buyer guide identifies Ashley as its lender review partner. MoJo provides real estate services; First State Bank provides mortgage services. You may choose your own lender and real estate representative.
For a practical cash-to-close checklist, read VA loan closing costs.
Already own a home with a VA loan?
Read the VA refinance guide for questions to ask about IRRRL and cash-out options. The right path depends on your current loan and what you want to accomplish.
No down payment does not mean no closing costs
A VA purchase can have closing expenses even when no down payment is required. Ask for three separate figures: what you must pay before closing, what you must bring to closing, and what may be financed into the loan. Your eligibility, entitlement, lender approval, appraisal, and purchase details still matter.
| Cost or requirement | What to clarify |
|---|---|
| VA funding fee | Does an exemption apply? If not, what fee applies to this transaction, and what happens if it is financed? |
| Loan and settlement costs | Which charges are included in the estimate, and which are paid before closing? |
| Taxes and insurance | What prepaid amounts and escrow deposits are required for this property? |
| Seller assistance | What is permitted by the loan rules and actually agreed to in the contract? |
A funding-fee exemption is something to verify through the lender using the applicable VA documentation. Read the VA closing-cost guide before comparing offers.
- VA: purchase loan eligibility and benefits
- VA: funding fee and closing costs
- MoJo: Kansas City VA buyer guide
Sources checked September 13, 2026. Educational content; confirm current program details with your lender.