VA loans

This has been an interesting week in politics and in honor of Veteran's Day, I decided to remind people that VA loans are a wonderful way to purchase a new home.  Those that serve our country in the military have a wonderful benefit called a VA loan.  It allows you to purchase a home with zero down and no monthly mortgage insurance!

VA loans are typically a lower interest rate than conventional loans, there are reduced closing costs and no monthly mortgage insurance. There is a VA funding fee that is added to your mortgage. This fee will vary based on whether or not you have used the loan before and if you are making a down payment.  If you are using your VA loan for the first time and putting zero down, the VA funding fee is 2.15% of the mortgage amount. However if you decide to put 5% down, it lowers your funding fee to 1.5%.  If you have used your VA loan before, the VA funding fee may be as much as 3%.  If you have a VA related disability, your funding fee may be reduced or waived.

VA loans are assumable to anyone that can qualify for the mortgage. If you sell your home and allow someone to assume that mortgage, you do limit your access to a new VA loan. The amount of your current mortgage will affect how much you can qualify for using your VA benefits again – until that original loan is paid off.  

VA loans are available to those that have served in any branch of our military including the Reserves and National Guard.  Unmarried surviving spouses may also be eligible.  The amount of time served is what determines your eligibility. The time required is:

  • 90 days during wartime
  • 181 days during peacetime
  • 6 years in the National Guard or Reserves

In Minnesota, if you are a disabled vet, you may also be eligible for reduced or eliminated property taxes.  Once you have purchased your home, talk to the county tax assessor to find out what you can do.  There is typically a form that you need to fill in, but if you can eliminate your property taxes, that can help you lower your mortgage payment even more!

If you feel you have earned your VA benefits, talk to your loan officer about the possibility of using a VA loan to purchase your new home. Not every lender will do a VA loan, so you may need to check with more than one lender, but they are a great option to finance a home with.

And I also want to thank those that have served our country – I truly appreciate your sacrifices and your family's. Thank you.  Have a wonderful Veteran's Day!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, Inc, AnEqual Housing Lender, NMLS#150953 - Email - Website

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

Weekly real estate market update… Goldman Sachs predicts the worst is behind us

Market stats are encouraging, as new and coming soon listings show a slight increase… and pending sales continue to rise while price drops decline. Even multiple offers are showing a...

4 Home Binder Printables for Any Stage of Homeownership, and How to Set up the Binder

Looking for a better way to organize your home? Try making a home binder with these 4 printables for any stage of homeownership.

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.