Walk into your new home with $0 Down, $0 Monthly PMI, and $0 Funding Fee (for 10%+ disabled veterans). Plus, learn how to deduct the funding fee on your taxes.
No other mortgage program offers veterans this combination of benefits. Here's exactly what "0-0-0" means—and how much it saves you.
Unlike conventional loans requiring 5-20% down, VA loans require zero down payment. Keep your savings for moving costs, furniture, or emergencies.
Private Mortgage Insurance (PMI) protects the lender if you default. Conventional loans require PMI until you reach 20% equity—but VA loans never require PMI.
The VA Funding Fee is a one-time charge that helps fund the loan program. Veterans with 10%+ service-connected disability get automatic waiver.
What is a COE (Certificate of Eligibility)? Your COE is an official VA document that proves you've earned VA loan benefits through your military service. Lenders require this to verify you qualify for a VA-backed mortgage.
Why is it important? Without a COE, you can't get a VA loan. It shows lenders your entitlement level, discharge status, and eligibility—all required before they'll approve your loan.
Request Your COE (VA Form 26-1880)Good news: The VA Funding Fee is now tax-deductible on your federal return. Here's how to claim it.
Home Mortgage Interest Deduction
The IRS allows you to deduct the VA Funding Fee as part of your mortgage interest deduction. This applies whether you paid the fee upfront or financed it into your loan.
What you'll need:
The $6,450 funding fee can be deducted as mortgage interest over the life of your loan, reducing your taxable income each year.
Hand your CPA the Closing Disclosure and IRS Publication 936. They may not know about this deduction without being told.
Many states offer significant property tax exemptions for veterans with service-connected disabilities. A 100% P&T rating may mean $0 property taxes in some states.
Benefits vary significantly by state. Use the official VA State Veteran Benefits Directory to find what's available in your area.
Find your state's specific veteran property tax programs
Use your VA Summary of Benefits Letter as proof of disability rating
Submit your benefits letter to claim your exemption
The VA Summary of Benefits Letter is your proof of service-connected status. Download it from VA.gov under "Manage Benefits" → "Letters." Present it to your county assessor's office to claim property tax exemptions.
Many states (TX, FL, SC, AZ, etc.) offer 100% exemption from school district and county taxes for 100% P&T veterans.
Some states offer tiered exemptions. Check your state's specific requirements for percentage-based reductions.
Many states offer additional homestead exemptions for veterans aged 65+ or who are totally disabled, regardless of rating.
* Benefits vary significantly by state and county. Always verify with your local assessor's office.
You served. You sacrificed. Now it's time to come home—to the benefits you earned and the American Dream you defended.
The VA loan isn't just a mortgage program. It's recognition that your service has value—and that you deserve a hand building your future.
Your COE is the first step. Request it today and start your journey to homeownership with zero down and maximum benefits.
Additional Resources
Need help? Call the VA at 1-877-827-3702 (VA Home Loans)
