Buying With $0 Down in San Antonio: What It Really Costs

What $0 down actually means

The VA guaranty removes the down payment requirement and removes monthly mortgage insurance entirely. On a $350,000 purchase, a conventional buyer with 5% down brings $17,500 plus mortgage insurance every month. A VA buyer brings none of that. That is the single largest financial advantage in American home lending, and it is the reason a VA loan usually beats a conventional loan even when the conventional rate looks lower.

The cash you still need

Down payment is not the only cash in a purchase. Here is what a San Antonio buyer should plan for.

• Earnest money: typically 1% of the price, credited back to you at closing.
• VA appraisal: roughly $500 to $800, paid up front in most cases.
• Home inspection: optional but strongly recommended, roughly $400 to $600.
• Closing costs and prepaids: title, recording, taxes, and insurance escrows.

The funding fee does not come out of pocket

First-time VA use with no down payment carries a 2.15% funding fee, which is $7,525 on a $350,000 loan. Almost every buyer finances it into the loan rather than paying it at closing. If you receive VA disability compensation, or you are a surviving spouse, the fee is waived entirely — no paperwork gymnastics, it simply does not apply.

Use the 4% seller concession rule

On a VA loan the seller may contribute up to 4% of the loan amount toward your closing costs and prepaid items, and that 4% can cover the funding fee itself. On a $350,000 purchase that is up to $14,000 — more than enough to bring a typical buyer to the table with only earnest money and the appraisal fee out of pocket. Negotiating concessions instead of a lower price is usually the better move for a zero-down buyer, because it converts seller money into cash you would otherwise have to produce.

Where BAH fits

For active-duty families at JBSA, BAH counts as qualifying income. In much of Bexar County a mid-grade BAH covers a payment on a home in the $300,000 range, which means the monthly cost of owning is frequently at or below what the same family is already paying in rent. Run your own numbers before assuming you need to wait and save.