VA loans generally do not require that the borrower provide a downpayment. However, the borrower may need funds to cover VA closing cost or to cover the difference between their VA loan amount and the purchase price. This may be the case with VA loans that are considered to be VA Jumbo loans. 

Veterans can also reduce their VA funding fee by making a downpayment.

Funds for downpayments and closing cost must be verified by the lender. The verification may come from:

• original or certified true copies of the applicant's last two bank/stock/mutual funds statements.
• the borrower's bank statements available to them by Internet or faxed from the depository directly to the lender. In cases where the lending institution uses Internet based verifications, ensure the URL appears on the document.
• Proceeds from the sale of other Real Estate
• Stocks. Bonds Mutual Funds

Cash on Hand:

Another area where low- to moderate-income borrowers sometimes differ from others is the source of funds to close loans. It is not unusual or unacceptable for some borrowers to save money at home versus using depositories. In order to be acceptable, a reasonable explanation of how the borrower saved the funds should be provided.

OTHER DOWNPAYMENT ISSUE

Because VA loans can be for the full reasonable value of the property, no downpayment is required by VA except in the following circumstances:

• If the purchase price exceeds the reasonable value of the property, a downpayment in the amount of the difference must be made in cash from the borrower's own resources.
  
• Also, VA requires a downpayment on all GPMs.