Is it really zero money out of pocket?

Let us be crystal clear:  No money down does not mean no money will come out of your pocket. To be frank, you will never be able to receive your house keys without having some costs, no matter what home you buy or loan you use. So, if you have little to no money saved up, it is most likely not the time to be looking to purchase a home. 
 
We are ONE suggest that you should have at least $2,000 accessible before purchasing a home. This comprises $1,000 in earnest money, which is a deposit made to a seller that represents a buyer's good faith to buy a home, $500 for the appraisal and $500 for the inspection. 
 
Remember: Even though you do have to pay, the upfront costs with a VA loan are less than with other loans. For example, the VA loan actually prevents the buyer from paying certain costs at closing. Moreover, your monthly mortgage payment will most likely be less than if you had a FHA, conventional or USDA loan due to competitive interest rates and not having to pay mortgage insurance. 
 
Below is a chart comparing the monthly payment of several loans to the VA loan. 
 
Estimated prices for a $200,000 mortgage with a 4.75% interest rate.

Loan Type
Principal
&
Interest
Taxes
&
Insurance
Mortgage
Insurance
Monthly
Payment

FHA

$1,025

$260

$139

$1,424

USDA

$1,702

$260

$86

$1,418
Conventional

$991

$260

$114

$1,365

VA

$1,066

$260

$0

$1,326