With a VA loan in San Antonio, you may be able to buy with $0 down, but you should still plan for closing costs, prepaid items (taxes/insurance/interest), and upfront contract expenses. Many buyers budget about 2%–5% of the purchase price for closing costs, then reduce that number by negotiating seller credits when the deal supports it. 

The simple truth: VA is “no down payment,” not “no money needed”

A VA loan is one of the strongest home-buying tools available to eligible Veterans and military families—but even with $0 down, there are still real costs that show up between contract and closing.

Think of your out-of-pocket cash in three buckets:

1. Upfront contract money (paid during the option/inspection phase)

2. Cash to close (what you bring to the closing table)

3. Reserves (your cushion after closing so the new house doesn’t feel “tight”)

Start with a realistic San Antonio price point

To make the numbers feel real, let’s anchor to a current market reference: Redfin shows a median sale price around $260,000 in San Antonio (November 2025). Your exact neighborhood, property type, and condition will move the numbers, but the budgeting logic stays the same.

What you might pay with a VA loan (and what you might not)

Down payment

Many qualified VA buyers can purchase with $0 down. Whether $0 down is available for you depends on VA eligibility and lender approval (and sometimes how your specific purchase is structured), but it’s a common VA advantage. 

VA funding fee (often financed, sometimes $0)

The VA funding fee is a one-time fee that helps sustain the VA loan program. The VA publishes the current funding-fee charts, and the rates for purchase loans closing on/after April 7, 2023 are commonly: 

• First use, less than 5% down: 2.15%

• Subsequent use, less than 5% down: 3.3%

• With 5% down: 1.5%

• With 10% down: 1.25%

Two key planning notes:

• Many borrowers can finance the funding fee into the loan instead of paying it out of pocket. 

• Some borrowers may be exempt from the funding fee (the VA outlines exemptions on its official page). 

Example (using $260,000):
If you’re first-time VA use with $0 down, 2.15% × $260,000 = $5,590 (commonly financed).

Closing costs: the number most buyers actually feel

Closing costs are the lender/title/escrow/government fees required to finalize the purchase and start your loan. A common planning range for buyers is about 2%–5% of the purchase price (varies by loan, location, and negotiation). 

On a $260,000 purchase, that’s roughly:

• 2%: $5,200

• 5%: $13,000 

This is why VA budgeting isn’t just “Do you have a down payment?” It’s “How do we structure the offer so your cash-to-close is comfortable?”

“Can the seller pay my closing costs with VA?”

Often, yes, seller credits toward typical buyer closing costs can be negotiated, and VA rules also address seller concessions (certain “extras” of value beyond normal costs). VA commonly limits seller concessions to 4% of the home’s reasonable value, and many explanations clarify that the 4% rule applies to concessions, not the payment of normal buyer closing costs. 

Practical takeaway: you can sometimes negotiate meaningful help with closing costs, but it needs to be done correctly and documented cleanly.

Prepaids: the “not really fees” items that still require cash

Even when your lender and title fees are reasonable, prepaids can surprise buyers because they don’t feel like “closing costs,” but they still affect your cash-to-close. Prepaids often include:

• Homeowners insurance premium (often the first year)

• Prepaid interest (from closing date to month-end)

• Escrow seed for property taxes and insurance (timing matters)

These are not “junk fees.” They’re part of getting the home insured, funded, and properly escrowed. The closing date you choose can move these numbers.

Upfront contract expenses in San Antonio: what to expect before closing

Before you even reach the closing table, most buyers will spend some money during the contract period. Examples:

• Home inspection (paid out of pocket)

• Option fee (Texas-specific; paid to the seller for the option period)

• Earnest money (usually credited back toward your closing funds if you close)

These aren’t always huge individually, but they’re real, and they matter if you’re trying to keep your cash position strong.

Three budgeting scenarios I use with VA buyers

Using the $260,000 example again: 

Scenario A: You negotiate strong seller credits

• $0 down (typical VA advantage)

• Funding fee financed (if applicable)

• Seller credits reduce cash-to-close

Result: your out-of-pocket often becomes more about inspection/option/earnest plus any remaining gap not covered by credits.

Scenario B: Minimal credits, clean deal

• $0 down

• Closing costs fall closer to that 2%–5% planning range 

• Prepaids vary by closing date and escrow setup

Result: you may want several thousand to low five figures available depending on the home price and timing.

Scenario C: You choose to put some money down

Not required with VA, but sometimes used to:

• reduce the funding fee percentage, or

• strengthen an offer depending on the situation 

Result: higher cash up front, potentially different overall structure. The “best” choice depends on your goals, not a rule of thumb.

How to get a precise number early (and avoid surprises)

Two documents keep you grounded:

• Loan Estimate (LE): gives your early, itemized estimate of closing costs and cash-to-close.

• Closing Disclosure (CD): your final terms and final cash-to-close, required at least 3 business days before closing.

If you want control over your budget, you don’t guess, you compare your LE to your CD and ask questions early.

A clean “cash to close” planning guide (VA buyers)

If you want a simple planning target, here’s a conservative approach that works for many VA buyers:

• Upfront contract expenses: set aside a buffer for inspection/option/earnest

• Closing costs + prepaids: plan 2%–5% of purchase price, then aim to negotiate credits when appropriate

• Post-close cushion: keep reserves so the first few months feel stable (moving, utilities, small repairs, etc.)

Final takeaway

With a VA loan, your down payment in San Antonio may be $0, but a smart plan still includes closing costs, prepaids, and upfront contract expenses, and the biggest lever you control is offer structure and negotiated credits, done within VA guidelines.

 

Talk with Christopher Beal: If you want a clear “cash-to-close” number for your VA purchase in San Antonio, I’ll map it out with you based on your price range, funding-fee status, and a realistic seller-credit strategy.

Next step: Schedule a VA buyer strategy call and I’ll walk you through:

• a clean cash-to-close estimate range,

• how seller credits may (or may not) fit your situation,

• and what to watch on your Loan Estimate and Closing Disclosure