VA loans

Since Tuesday was Veteran's Day, I thought this was a perfect week to remind people about VA loans!  VA loans are a wonderful benefit to our veterans.  If you are thinking about buying a home and have VA eligiblity, make sure you talk to your loan officer about it.

VA loans are one of the two true zero down loans left, the other is USDA's rural development program.  There is a VA funding fee, but that is added to your mortgage, so you do not have to pay it at closing.  The amount of the VA funding fee varies based on any possible down payment, whether you are active duty or reserves, and the number of times you use your VA benefits.  If this is the first time you have used your VA loan, typically the funding fee is 2.15%.  There is not a monthly fee, which really helps lower your house payment.  Both USDA and FHA loans have monthly fees for their mortgage insurance or guarantee fee.  If you have any VA related disability, the funding fee may be waived – the amount depends on the amount of disability. 

The seller can pay closing costs on VA loans, which can help you buy with very little money out of your pocket.  There is a cap of 4% towards seller paid closing costs, many sellers may not want to pay more than 3% though.

 Another benefit to the VA loan is a refinance called an Interest Rate Reduction Refinance.  This allows you to refinance your home loan to a lower rate without an appraisal and with very little qualifications. 

If you think you may be able to qualify for a VA loan, ask your loan officer.  They are a great way to buy a home!

A special thank you this week to all those that have served or are currently serving in the military – I truly appreciate the sacrifices you have made for our country!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, NMLS#150953 – EmailWebsite

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

What Every Homebuyer Should Know About Closing Costs

🖨 Print Article Before making the decision to buy a home, it’s important to plan for all the costs you’ll be responsible for. While you’re busy saving for the down payment, don’t...

Transite Heat: is this a problem?

🖨 Print Article If you mention the word transite to about 90% of the population, they either think of HVAC ductwork installed below the concrete floor in a basement, or they...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.