VA Mortgage Loans

If you formerly served or currently serve in the US military (Air Force, Navy, Army, Marine Core and Coast Guard) or the Reserves/National Guard then you may qualify for this fantastic program. Veterans have access to the best mortgage financing available in America today, bar none. The VA allows veterans to finance 100% of the home purchase price. No where else can you find such a program.

What is a VA Loan?

A VA loan is a mortgage loan that is guaranteed by the U.S Dept of Veteran Affairs and issued by qualified lenders to eligible borrowers. Eligibility is verified by the VA either by your broker or you can do it yourself by going to the Am I Eligible? page at the VA web site.

What is the Funding Fee?

For the VA to guarantee the loan to the lender there is a fee known as a Funding Fee. The matrix below describes the fee which is dependent on several factors as listed in the table. The fee will also be waived if the Veteran is receiving 10% or more VA disability. The funding fee is a percentage of the loan amount and it CAN BE financed into the loan, paid for by the seller if closing costs have been agreed to be paid for or paid for in cash at the closing table.

Type of Veteran	Down Payment	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military	None 5% or more (up to 10%) 10% or more	2.15% 1.50% 1.25%	3.3% 1.50% 1.25%
Reserves/National Guard	None5% or more (up to 10%) 10% or more	2.4%1.75% 1.5%	3.3%1.75% 1.5%

Do I have to pay Monthly Mortgage Insurance (PMI)?

No!!! How great is that? Unlike other conventional or government loans there is no PMI assessed each month if the loan to value is over 80%.

Closing Costs

Closing costs of up to 4% of the purchase price can be used to pay for most of the closing costs for obtaining the loan which would include normal fees assessed by the lender as well as pre-paid items such as the appraisal for the property. As mentioned above the funding fee may also be included in the closing costs paid for by the seller.