Since we are celebrating the 4th of July this week, I thought it made sense to talk about VA mortgages and the benefits to those that have served our country!
VA mortgages are available to most that have served on active duty and to many that have served in the reserves. It is a benefit that not everyone takes advantage of. A VA mortgage allows you to buy a home with zero down and the seller can help with your closing costs.
VA mortgages do require a VA funding fee. The amount depends on the type of military service you have and may be waived if you have a disability related to your time in the military. The funding fee is added to the mortgage. There is not a monthly fee. This is one of the few programs that allows for less than 20% down and does not have a monthly mortgage insurance fee.
VA mortgages can be used on single family homes, townhomes and condos. The condos need to have VA approval.
VA interest rates can be lower than FHA, or the same – they usually are lower than conventional rates. VA loans can be assumed by the person that buys your home. It does affect your ability to use your VA loan until that mortgage is paid off, but it may help you sell your current home.
If you think you qualify for a VA loan, talk to your lender and see how much you qualify for. VA loans are great ways to buy a new home!