VA Loan Down Payment: What You Pay and When, Start to Finish in Metro Atlanta

When Cash Comes Due on a VA Purchase

A VA loan typically requires no down payment when the veteran has full entitlement, meaning the full VA home loan benefit is available for the purchase, and that is one of the best-known features of the benefit. A down payment is the part of the price a buyer pays upfront, with the loan covering the rest. A purchase still comes with costs at several points between the offer and the move, and it helps to know when each one arrives.

Earnest Money With the Offer

Earnest money is a deposit a buyer pays to show good faith once a contract is signed. It is held by a third party, which, in Georgia, is most often the closing attorney. If the sale closes, the deposit goes toward the buyer's closing costs or down payment. If the contract ends, the contract's terms decide whether the buyer gets the deposit back. During the due diligence period, the time the contract provides for the buyer to inspect the home and decide whether to go ahead, the buyer can terminate for any reason and the deposit comes back. The deposit is also returned if the buyer is turned down for the loan within the time the contract sets for financing and the buyer gives the seller the lender's denial letter. Both of these protections have deadlines, so a buyer should respond quickly to every lender request and keep finances stable until closing, which includes holding off on new debt and large purchases. A buyer should ask a lender what that means for their situation.

The VA itself does not require earnest money, so the amount, and whether to offer one, is part of the negotiation between buyer and seller. In the current metro Atlanta market, earnest money is typically about 1 percent of the sales price, which is what sellers generally expect. Every contract for a VA-guaranteed loan includes the VA escape clause, which the Georgia purchase contract calls the Amendatory Clause. If the price is higher than the reasonable value the VA sets for the home, and the buyer and seller cannot agree on a new price, the buyer can leave the contract and the deposit is returned. Reasonable value is the VA's opinion of what the home is worth, and it comes from the appraisal described below. A buyer who still wants the home can choose to go ahead at the contract price.

Home Inspection and Appraisal Fees

Two fees come up soon after the contract is signed, and the buyer pays each one before closing.

A home inspection is a licensed inspector's written report on a home's heating, cooling, plumbing, electrical, and structural systems. The VA does not require an inspection but highly recommends one for every borrower. The VA states that the appraisal does not take the place of an inspection. The buyer chooses the inspector and pays the inspector's fee directly. Around Atlanta, a base inspection typically runs about $400 to $600, depending on the size of the home. Added tests, such as radon or mold testing, cost more and add time.

The appraisal is required on a VA purchase loan. The lender orders it from a VA-approved appraiser, who gives an opinion of the home's reasonable value and checks that the home meets the VA's minimum property requirements. The buyer pays the appraisal fee when the appraisal is ordered. The VA sets a maximum appraisal fee for each area and publishes the schedule. In the schedule effective May 1, 2026, the maximum for a single-family home is $700 across most of Georgia. The VA can approve a higher fee for a complex property. If it appears that the value will come in below the price, the appraiser notifies the lender before finishing the report, and the parties then have two business days to submit additional sales data. My post on the VA Tidewater process explains the steps.

The VA Buyer's Guide notes that a buyer who uses the escape clause to terminate a contract does not get back the inspection or appraisal costs already paid.

Closing Costs and the Funding Fee

Closing costs are the fees due at closing to complete the loan and the sale. Among them are the credit report, title examination and title insurance, recording fees, a flood zone check, a survey when one is required, homeowner's insurance, and the first deposits into the tax and insurance account. The total depends on the loan amount, the location of the home, the lender's fees, and whether the buyer owes the funding fee. The appraisal fee from the section above is on this list as well, although the buyer pays it earlier in the process.

A seller, a lender, or another party can pay closing costs on the buyer's behalf, which makes who pays each one a point to settle when the offer is written and negotiated. My post on who pays each closing cost on a VA loan goes through the full list.

The VA funding fee is a one-time fee paid to the VA to help cover the cost of running the home loan program. Veterans who receive VA compensation for a service-connected disability, along with some other groups, owe no fee. On a purchase loan, the funding fee is the only fee that can be added to the loan amount, so a buyer who finances it pays nothing toward it at closing. My post on VA funding fee amounts and exemptions covers the rates and the full list of exemptions.

A Down Payment When You Want One

A buyer who chooses to make a down payment does so because it lowers the loan amount and the monthly payment. A down payment of at least 5 percent also lowers the funding fee for a buyer who owes it, and 10 percent lowers it further.

Georgia also has down payment assistance programs, and my post on Georgia down payment assistance and how it works with a VA loan covers them. My post on how the VA, FHA, and conventional loans compare shows the typical minimum down payment for each.

Moving and Settling In

Moving costs, utility set-up, and the first purchases a new home calls for are separate from the closing, and none of them are part of the VA loan. These amounts vary with the distance, the size of the household, and any moving allowances the military provides, so it works best to get an estimate for your own move. When you are ready, I can connect you with local movers and other vendors.

Planning the Timing for Your Purchase

A lender can explain the funding fee and the closing costs for the price range you have in mind, and I can point you to a lender if you need one. If you would like to place these costs on a timeline for a specific home, I am happy to walk through it with you.

Michelle Campbell | Campbell Group at Epique Realty | campbellgrouprealty.com