Can You Really Buy With $0 Down? How the VA Loan Works in Springfield
It's the first question almost every veteran asks me: "Can I really buy a house without a down payment?" For most qualified buyers using a VA-backed home loan, the answer is yes — and it's not a gimmick. It's a benefit you earned through service. Here's how it actually works, in plain language, for buyers in Springfield and Southwest Missouri.
The $0-down part is real
The VA itself says it plainly: in most cases, the VA loan guaranty "allows you to buy a home with no down payment," as long as the sales price isn't higher than the home's appraised value.1 That last part matters. If you agree to pay $250,000 but the VA appraisal comes back at $240,000, the loan is capped at the lower number — so the price and the appraised value need to line up for a true zero-down purchase.2
No PMI — and that saves you every single month
On most low-down-payment loans, lenders charge private mortgage insurance (PMI) — an extra monthly cost that protects the lender, not you. VA loans don't require it. The reason: the VA guarantees up to 25% of the loan to the lender if the borrower defaults, so the lender doesn't need PMI to cover its risk.3 The VA confirms its program "doesn't require down payments or monthly mortgage insurance."1
That missing PMI line can be $100–$200+ a month on a home in this price range — money that stays in your pocket for the life of the loan.
So what's the catch? The funding fee
There's no monthly mortgage insurance, but there is a one-time VA funding fee. It's a single payment that helps keep the program running at low cost to taxpayers, and it's what makes zero-down and no-PMI possible in the first place.2 For a first-time VA buyer putting nothing down, the fee is 2.15% of the loan amount, and it can be rolled into the loan instead of paid in cash at closing.2
What it looks like on a real purchase
Say you're a first-time VA buyer purchasing a $250,000 home in Nixa with no down payment and no funding-fee exemption:
| Item | Amount |
|---|---|
| Purchase price / loan amount | $250,000 |
| Down payment | $0 |
| Monthly PMI | $0 (VA loans have none) |
| Funding fee (2.15%, first use, financed) | ~$5,375 rolled into the loan |
Compare that to needing $7,500–$12,500 in cash up front plus monthly PMI on a conventional loan, and you can see why this benefit is worth understanding before you shop.
A few things to keep in mind
- You still have to qualify. The VA guaranty gets you in the door, but your lender still approves you based on credit, income, and debts.4
- Closing costs are separate. On a purchase loan you can finance the funding fee, but other closing costs are paid at closing — though the seller is allowed to help.2 (More on that in a future post.)
- The appraisal has to support the price for a true zero-down deal — which is exactly where having an agent who knows VA appraisals earns their keep.
Thinking about using your VA benefit in Springfield?
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- U.S. Department of Veterans Affairs — VA home loan entitlement and limits ("this guaranty allows you to buy a home with no down payment"). Accessed 2026.
- U.S. Department of Veterans Affairs — VA funding fee and loan closing costs (funding fee rates effective April 7, 2023; exemptions; financing; appraisal cap). Last updated Jan 15, 2026.
- U.S. Department of Veterans Affairs — VA purchase loan (VA guarantees up to 25% of the loan; no PMI required).
- U.S. Department of Veterans Affairs — VA home loan entitlement and limits (lender approves based on credit, income, debts, and assets).
Figures are illustrative and current as of publication. VA rules and lender terms change — confirm current details at va.gov or with a VA-approved lender.