Do I need a down payment with a VA loan?

The VA guaranty is the mechanism. A conventional lender wants 20% down, or mortgage insurance in place of it, to cover the risk of default. On a VA loan, VA covers that risk by guaranteeing a portion of the loan — 25% of the loan amount for a borrower with full entitlement — so the lender needs neither the down payment nor the insurance. The Blue Water Navy Vietnam Veterans Act removed the county loan limit for full-entitlement borrowers as of January 1, 2020, which is why the answer is "no down payment at any price" rather than "no down payment up to a cap."

Two exceptions. If you already have a VA loan open, you are using remaining entitlement, and the second-tier calculation may produce a down payment of 25% of the amount above what your remaining entitlement covers. And a lender can require a down payment as a credit or ratio overlay on an individual file — that is a lender decision, not a VA rule.

What you still need cash for: earnest money (returned at closing or credited), the inspection, the appraisal fee if not credited, and closing costs — which the seller can pay in full, and which VA limits on the buyer's side. The funding fee can be financed rather than paid at closing. For the underlying rules, see entitlement explained and the VA loan guidelines.