Costs
What a VA loan costs in Chicago
Short answer
With a VA loan in Chicago you usually pay no down payment and no monthly mortgage insurance. You do pay a one-time VA funding fee of 2.15% on a first-use, zero-down purchase (0% if you get VA disability compensation), normal closing costs, and the buyer's 0.75% share of the City of Chicago transfer tax. The seller can pay your closing costs, and concessions are capped at 4% of the home's reasonable value.
The costs at a glance
| Cost | Amount | Can it be financed or paid by the seller? |
|---|---|---|
| Down payment | $0 | Not required when price is at or below appraised value |
| VA funding fee, first use, under 5% down | 2.15% of loan | Can be financed into the loan; seller may pay as a concession |
| Funding fee, disabled veteran | 0% | Exempt |
| Monthly mortgage insurance | $0 | None on VA loans |
| Lender flat charge | Up to 1% of loan | Seller may pay |
| Chicago transfer tax, buyer share | $3.75 per $500 (0.75%) | Negotiable with seller |
| Seller concessions limit | 4% of reasonable value | Closing-cost credits themselves are not capped |
Cost guides
- VA funding fee 2026: charts, exemptions and calculator
- VA closing costs in Chicago: who pays what
- VA loan limits and entitlement in Cook County
- VA vs. conventional: what each costs
- VA vs. FHA: what each costs
- VA loan glossary
Common questions
Is a VA loan really zero down in Chicago?
Yes, if you have full entitlement and the price does not exceed the appraised value. Buyers with partial entitlement may need a down payment on larger loans.
Do VA loans have PMI?
No. VA loans do not require private mortgage insurance or monthly mortgage insurance premiums.
Sources
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.