# VA Loans in Pennsylvania: Do You Really Need a Down Payment?

By Edwin Santiago (@edwinsantiago) · Published 2026-11-06

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The short answer is no — most eligible Veterans in the Philadelphia area can buy a home with a VA loan and put **nothing down**. The VA home loan program lets qualified borrowers finance 100% of the home's value, which is how the down payment disappears. That's the core of the benefit, and it's worth understanding exactly how it works before you shop for a house in the greater Philadelphia market.

#### Key Takeaways

-   VA loans typically require no down payment for borrowers with full entitlement
-   No private mortgage insurance (PMI) is required on VA loans
-   You'll still need a Certificate of Eligibility (COE) to prove your service
-   Closing costs and the VA funding fee still apply, though sellers can contribute up to 4%
-   Eligible Veterans with service-connected disabilities may have the funding fee waived

## Why a VA loan means no down payment

The VA loan program backs a portion of your mortgage with the U.S. Department of Veterans Affairs, which lets private lenders offer financing terms that conventional loans can't match. Because the VA guarantees part of the loan, lenders accept the risk of lending 100% of the home's value — no down payment required. As CrossCountry Mortgage's [VA loan benefits guide](https://crosscountrymortgage.com/mortgage/resources/va-loan-benefits) puts it, the program "allows you to purchase a home without a down payment," with the loan funding up to 100% of the home's value.

That's a meaningful difference from a conventional mortgage. Conventional programs can require a down payment, though some allow as little as **3%** down. For a home in the Philadelphia market, a conventional down payment can still mean tens of thousands of dollars upfront that a VA loan lets you keep in reserve. The VA's own [home loan toolkit](https://benefits.va.gov/homeloans/documents/docs/lgy-eligibility-for-va-home-loan-toolkit.pdf) confirms it plainly: VA home loans "typically do not require a down payment (with full eligibility)."

There's one condition attached to the $0 down benefit: you need **full VA entitlement**. That means you haven't previously used up your available loan guarantee on another VA loan. If a portion of your entitlement is already used, the remaining balance may not cover the full loan amount — and you could be asked for a down payment on the difference. That's a conversation worth having with a loan officer early, before you start touring houses.

## Who qualifies for a VA loan?

To use the $0 down benefit, you need to prove your Military service. The document that does that is called a **Certificate of Eligibility (COE)** — it confirms to your lender that you're eligible for the VA home loan benefit and shows how much entitlement you have available. As the VA's home loan eligibility guide explains, you can apply for a COE by submitting VA Form 26-1880, or your lender can often pull it through the Web LGY system in a matter of seconds.

Eligibility itself comes from your service history. Veterans, Active-Duty Service Members, and certain surviving spouses qualify. The [VA home loan toolkit](https://benefits.va.gov/homeloans/documents/docs/lgy-eligibility-for-va-home-loan-toolkit.pdf) notes that eligibility is also available to some Reservists and National Guard members, with at least six years of honorable service. Your discharge conditions matter too — you need to have been discharged under conditions other than dishonorable.

Once you have that paperwork in order, you still have to meet the lender's credit and income standards. The VA doesn't set a minimum credit score, but your lender can, and they'll look at your [debt-to-income ratio (DTI)](https://crosscountrymortgage.com/mortgage/resources/va-loan-benefits) before approving the loan. VA underwriting weighs **residual income** — the amount left after housing and other obligations are paid — along with your overall financial picture, rather than relying on a single DTI cutoff. The exact thresholds vary by lender and by the strength of the rest of your file.

For Veterans in the Philadelphia and surrounding areas, the practical takeaway is that the path to a VA loan starts with your COE, not with a savings account. Get that document moving early — it's the single biggest step between you and the no-down-payment purchase.

## What about closing costs in Pennsylvania?

Here's where Veterans in the Philadelphia area need to pay attention: no down payment doesn't mean no money at all. VA loans come with **closing costs** and a **VA funding fee**, and understanding those is the difference between a smooth closing and a surprise bill.

The VA funding fee is a percentage of your loan amount that helps support the VA loan program so future Veterans can use the benefit. The good news: on a purchase loan, the funding fee is the one fee you can **finance into the loan amount** itself, rather than paying it out of pocket at closing, as CrossCountry's [VA loan benefits guide](https://crosscountrymortgage.com/mortgage/resources/va-loan-benefits) explains. The VA confirms that on a purchase loan you can finance only the VA funding fee into the loan — all other fees and charges are paid when your loan closes. And if you have a service-connected disability, you may qualify for a waiver or refund of the fee entirely.

Your lender can also help with the paperwork. CrossCountry's [VA loan page](https://crosscountrymortgage.com/mortgage/loans/va-loan) notes that the team can contact the VA on your behalf to obtain your Certificate of Eligibility. VA rules limit **seller concessions** — anything of value added to the transaction at no cost to the buyer, such as a credit toward your VA funding fee or prepaid hazard insurance — to no more than **4% of the home's reasonable value**. That's a negotiating tool worth keeping in mind when you make an offer in Pennsylvania's competitive market.

VA rules limit certain fees that lenders can charge borrowers. Actual closing costs vary based on the loan amount, property, lender, and transaction details. Either way, you'll still want money set aside for the appraisal, title work, and other settlement fees. A good rule of thumb for the Philadelphia area: plan to bring some savings to closing even though you're putting nothing down on the purchase price itself.

## Why a VA loan makes sense for Philadelphia-area Veterans

The greater Philadelphia market — from the city itself out through Wayne, Chester, and Montgomery counties — has plenty of homes that fit a VA purchase. Row homes in the city, single-family houses in the suburbs, and new construction in the outer counties all qualify as long as the property meets VA Minimum Property Requirements and serves as your primary residence. A [VA renovation loan](https://crosscountrymortgage.com/mortgage/loans/renovation/va-renovation) can even cover repairs or upgrades after closing — repairing windows, replacing roofing, improving energy efficiency, and installing new HVAC — which matters in an older housing stock where some Philly homes need work.

What sets the VA loan apart from other options is that it's not just about the $0 down. You also avoid **private mortgage insurance (PMI)** — the extra monthly cost that conventional borrowers often pay when they don't reach a 20% down payment threshold. Because the VA guarantees part of the loan, lenders don't require PMI, which removes one recurring cost from your budget. Whether your total monthly payment ends up lower than a comparable conventional mortgage depends on the rate, loan terms, and other financing details — but you won't be paying a separate mortgage insurance premium on a VA loan.

And because you're financing 100%, there's no second-mortgage juggling or piggyback loan — the kind of workaround first-time buyers in expensive markets sometimes resort to. It's a cleaner structure, and it's built around a benefit you've already earned through service.

## What to do next

If you're a Veteran or Active-Duty Service Member in the Philadelphia area and you're ready to explore a VA loan, the next step is a conversation with a [loan officer](https://crosscountrymortgage.com/mortgage/loans/va-loan). They can help you pull your Certificate of Eligibility, review your credit and income against VA guidelines, and give you a realistic picture of what you can afford before you start looking at homes. I'm Edwin Santiago, an Originating Branch Manager at CrossCountry Mortgage, and I work with Veterans throughout the region. Rates and terms change with market conditions, so the figures that apply today may not apply when you close. **Schedule a rate consultation or a pre-approval conversation** to see where you stand — it costs nothing and gives you the clarity to move with confidence.

?Frequently Asked Questions3 questions

1If there's no down payment, what do I need to bring to closing?

You'll still need to account for closing costs and any applicable VA funding fee. The funding fee may be financed into the loan amount. Sellers may also pay certain closing costs, while VA-defined seller concessions are generally limited to 4% of the property's reasonable value.

2Do I always need a down payment for a VA loan?

For a Veteran with full entitlement, no. The VA program typically does not require a down payment, and the loan can fund up to 100% of the home's value.

3How do I get a Certificate of Eligibility?

You need a Certificate of Eligibility (COE) that confirms your service. Your lender can often obtain it through the VA's Web LGY system in seconds, or you can apply directly to the VA.

_All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry. CrossCountry its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort, or other tortious action._

_Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC NMLS3029 (www.nmlsconsumeraccess.org)._

_CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office. Certificate of Eligibility required for VA loans._