VA Home Loans are among the best loans you can get. They have great rates, require no down payment, allow for sellers to pay all your closing costs, have low funding fees, and have no mortgage insurance since they are guaranteed by the VA.
Interest rates on VA home loans are typically within a small percentage of the prevailing conventional lending rate. Depending on the market, they may be a little higher or lower than the current conventional rates.
VA loans require absolutely no down payment whether you are purchasing or refinancing your home and allow for a seller to pay for all closing costs for a buyer. So it is possible to purchase a home using a VA home loan and have virtually no money out of pocket when you go to the closing table.
VA loans are guaranteed by the Veteran’s Administration, which is to say that it is a form of Mortgage Insurance for the lender. In the event of a foreclosure occurring, the lender will be reimbursed for any amount still owed after the home is sold at a foreclosure sale.
Like any Mortgage Insurance, the VA charges the borrower for this protection of the lender. If you are a first time user of a VA loan, they currently charge 2.30% of the loan amount and 3.6% for each subsequent use thereafter. These fees are typically not collected at closing but rather added to the final loan amount.
For example, if you are purchasing a $100,000 house and have never used your VA benefits, then your VA funding fee would be $2300, which would be added to your $100,000 loan amount, which would make your final loan amount $102,300.
However, if you are a disabled veteran, ALL FUNDING FEES ARE WAIVED, making VA Home Loans for our Disabled Vets, the BEST loan out there!
If you are refinancing a home using a VA loan, the funding fee is reduced to just .5%.
So, if you are a Veteran and are looking for a great home loan with no down payment, then a VA Home Loan could be the best loan for you out there. If you are interested in getting a VA home loan, take a moment and fill out our Quick Inquiry to get the process started.