100% Financing (although the more you put down, the lower the VA Funding Fee)
No PMI (Private Mortgage Insurance)
VA Appraisal makes sure home is safe, sound, and sanitary
The VA Funding Fee is usually a cost that VA benefit holders are unaware of, but it is a fee that should be known about upfront. Most lenders will allow you to put the VA Funding Fee into the loan balance which still allows for a zero down payment. But don’t confuse zero down payment with no closing costs. You will still incur closing costs, but a seller credit or a lender credit may help offset those costs. If you are on active duty or a veteran, the VA Funding Fee for first time purchasers are as follows:
Less than 5%, Funding Fee is 2.15%
5% to 9.99%, Funding Fee is 1.50%
10% or more, Funding Fee is 1.25%
For Guard and Reservists, the fee is slightly higher.
An exemption to the VA Funding Fee exists for anyone with a 10% or more disability rating.
If you are interested in utilizing your VA Home Loan benefits, please contact us and we will put you in touch with a reputable VA Lender that will help you achieve your homeownership goals.
Chris Chin |Broker & Owner
November 12, 2014