For many that qualify, a VA loan can be a wonderful way to purchase a home. VA loans are designed to help active duty military, veterans and some other groups purchase homes at an affordable cost. A VA loan is one of two mortgages that allow zero down! A VA loan requires no down payment, no monthly mortgage insurance and has lenient rules for qualifying.
VA loans do not require a down payment. VA loans and USDA loans are the only two mortgages that do not require a down payment. This can allow you to purchase a home much easier than having to save money for your down payment.
VA loans do not have a monthly mortgage insurance payment. There is a VA funding fee that can be added to the mortgage. The amount of the VA funding fee will vary based on the down payment and if you have used the loan before. If it’s your first time using it and you do not put any money down, the VA funding fee is 2.3%. If you put 5-10% down, the VA funding fee is 1.65%. However if you have used your VA mortgage before, the VA funding fee will increase to 3.6%. If you have any VA disability, the VA funding fee may be reduced or waived entirely.
VA loans are assumable, this means when you go to sell your home, the buyer can assume your mortgage. With interest rates as low as they are now, that could help you sell your home in the future.
How do you know if you qualify for a VA mortgage? Here is a list of eligible VA borrowers:
- Active duty service members
- Members of the national guard
- Reservists
- Surviving spouses of veterans
- Cadets at the US Military, Air Force or Coast Guard Academy
- Midshipmen at the US Naval Academy
- Officers at the National Oceanic & Atmospheric Administration
There is a minimum term of service required. Usually you need to meet one of these requirements:
- Serving 181 days of active duty during peacetime
- Serving 90 days of active duty during wartime
- Served 6 year in the Reserves or National Guard
- Your spouse was killed in the line of duty and you have not remarried
Your VA benefit for the home loan program never expires and you can reuse it. You can apply for a home loan by using a lender that offers VA loans – most do. You can also shop around to compare interest rates and closing costs.
Since this weekend is Memorial Day, I wanted to say thank you to all those that have served our country and especially those that have made the ultimate sacrifice to our country. Thank you to your families also! I appreciate your time and sacrifice!!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website