Since Monday was Memorial Day, I thought I would say thank you to all those that have served our country and remind them that VA mortgage loans are a benefit for them.
VA mortgage loans are available to military service members that have completed the required time commitment in the military. They are one of the two zero down loans still available for mortgages. VA loans are available to the veteran and their spouse. The veteran must provide a VA certificate of eligibility or a DD214 and the lender can get the certificate.
VA loans require a VA funding fee of 2.15% for first time use and 3.3% for subsequent use with zero down. If you are putting 5% down, the VA funding fee is 1.5%. The VA funding fee can be added to your mortgage. There is not a monthly mortgage insurance premium which helps lower your monthly payment. In some cases, the veteran may not have to pay the VA funding fee.
VA loans are typically 30 yr fixed rate mortgages. You must work with a lender that is approved to do VA loans. You will have to provide your certificate and also verify income and assets. There will be a VA appraisal completed on the property. There are typically a couple of closing costs that can not be charged to the buyer on VA loans.
If you have VA eligibility, it is a terrific way to purchase a new home. The down payment can be zero, the seller can contribute towards your closing costs and your monthly payment may be lower without the monthly mortgage insurance required on FHA loans.
Thank you to all who have served our country and have given us the freedom to own our homes and land. I appreciate your time and sacrifices!