VA Home Loans

VA Home Loan Program for the men and women who protect our freedom- With more than 25.5 million veterans and service personnel eligible for a VA mortgage, this loan is extremely attractive to those who qualify and the advantages are endless. Eligibility for a VA home loan can be defined as Veterans who served on active duty and have a discharge status of anything but dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peace time.

  • Guaranteed by the government.  Both VA home loans and VA streamline refinance mortgages are guaranteed by the U.S. Department of Veteran Affairs
  • Borrow up to the VA Loan Limit of $417,000 with no down payment. VA Loan above $417,000 are allowed with a down payment
  • The seller is allowed to pay reasonable closings costs. Most veterans go to closing without any out of pocket expense.
  • Lower monthly mortgage payments. With no monthly Private Mortgage Insurance required (PMI)
  • Easier credit criteria. For a purchase transaction you need to have a minimum of a 620 mid FICO score. A 640 score is required for a refinance.

What is the history of VA mortgages?

In 1944 VA home loans became known through the Servicemen’s Readjustment ACT which is also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt. This bill was intended to provide veterans with a federally guaranteed home with no down payment. The idea behind the no down payment feature was to assist veterans and their families achieve the reality of becoming a home owner. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy.

What is the VA Funding Fee?

The VA Funding Fee is paid directly to the Department of Veterans Affairs and is the reason they can guarantee this no-money-down loan program. This fee is paid so that VA eligible borrowers can enjoy loan benefits such as $0 down financing and no Mortgage Insurance payments.

How is the VA Funding Fee paid?

The funding fee does not have to be paid separately and is usually rolled into the loan. This allows people to take advantage of the $0 down benefit of the VA home loan.

VA Funding Fee Exemption

If a borrower is receiving disability payments from the VA or are considered at least 10% disabled, they are exempt from paying the VA Funding Fee.

VA Funding Fee Chart

The Funding Fee is calculated by looking at 5 different factors, loan amount, loan type (purchase or refinance), type of service, down payment (if any) and prior VA loan use.

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Twitter

For The 9th Straight Month, Foreclosure Filings Fall

For the 9th straight month last month, foreclosure activity slowed. According to tracking firm RealtyTrac, the number of  filings dropped 29 percent nationwide on an annual basis in June. The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions. June marked the ninth consecutive month of sub-300,000 filings after 20 months […]

Continue reading »

Fed Meetings and their impact on consumers

The Federal Reserve released its June 2011 Federal Open Market Committee meeting minutes Tuesday. It contained no surprises and, as such, mortgage rates in Pennsylvania and New Jersey have idled in the hours since. The Fed Minutes is published 8 times annually, three weeks after each scheduled Federal Open Market Committee meeting. It’s the official log […]

Continue reading »

How will being pre-qualified help my home search?

Today most consumer’s start their home search online. It is important to know the advantages of being a pre-qualified buyer. There are several reasons that this will help you. First and foremost that this is free service that will help you find out the max range of homes you can look at but it also […]

Continue reading »

Top Road Blocks on the path to Home Ownership

Without question, today’s real estate market is considered a buyer’s market. By understanding the reasons why people are having trouble getting a mortgage, you can make sure that you are in position to buy. Learning these issues that others may have encountered you can make the whole home buying process much more enjoyable.  I have […]

Continue reading »

Key Terms for A First Time Home Buyer to Understand Part 1

There is no larger purchase that you will make in your life than buying a home. It is critical for First Time Home Buyers today to understand some key terms while applying for their first mortgage. I notice that a lot of First Time Buyers are almost afraid to ask questions. This should never be the case. […]

Continue reading »