The real cost of a VA loan in Florida: beyond zero down.

Zero down, but not zero cost

With full entitlement, a VA loan can cover the full price of the home. But buying a home still comes with costs: earnest money, inspections, closing costs and prepaid items. Knowing them up front means no surprises, and many of them can be covered by someone else.

Before closing

Earnest money. A deposit with your offer, credited back to you at closing.** Inspections.** Home inspection, and often a four point, wind mitigation and termite inspection in Florida.** Appraisal.** The VA appraisal is paid early in the process.

At closing

Lender and title costs. Title insurance, settlement and recording fees. VA limits certain fees veterans can be charged.** Florida mortgage taxes.** Florida charges a documentary stamp tax on the note of $0.35 per $100 and a 0.2% intangible tax on the mortgage, typically paid by the buyer.** Prepaids.** Your first year of homeowners insurance and deposits into your escrow account for taxes and insurance.** The funding fee,** unless you're exempt. It's usually financed rather than paid in cash.

How to cover your closing costs

Compare programs in gifts and seller help by loan.

Seller paid costs. Sellers can pay all of your normal closing costs, plus concessions of up to 4% of the home's value toward things like prepaids, the funding fee or paying off debt.** Lender credits.** A slightly higher rate can come with a credit toward costs. See the true cost of a mortgage.** Builder incentives.** On new construction, builders often contribute toward closing costs or a rate buydown.

Put together, it's possible to buy with very little out of pocket. Your earnest money comes back to you at closing.

Your real monthly payment

Your mortgage payment is more than principal and interest. In Florida, it usually includes property taxes, homeowners insurance and sometimes flood insurance, HOA dues and CDD assessments. Insurance in particular can vary widely from home to home. There's no monthly mortgage insurance on a VA loan.

Buying with almost nothing out of pocket

Sarah, an exempt veteran, bought a home in Kissimmee. She put down a modest earnest money deposit and paid for her inspections and appraisal.

The seller agreed to pay her closing costs plus a concession toward her prepaid insurance and escrow. She paid no funding fee, and her earnest money was credited back at closing. Her total out of pocket was the inspections and appraisal.