The Veteran's Page
This page is designed as a one stop resource area for
the Veteran Homebuyer. The Veteran holds a special place amongst
Homebuyers and deserves a place to go for all they need to
know about using their hard earned VA benefits.
No Down Payment is required. (Up to
a total loan amount of $417,000.00 on purchase transactions, higher in
The Veteran pays a one time fee to the
Veteran's Administration called a Funding Fee. This fee is usually financed into the
loan. When financed, the loan amount can exceed the sales price
of the property. The Funding Fee varies depending on previous
usage, amount of down payment (if any) and eligibility status.
Click Funding Fee Chart for more info.
The Veteran is allowed to borrow the
funds needed for closing costs associated with the process and closing
of the mortgage. The Veteran must also be able to qualify with
the payment for this loan also. The Veteran cannot borrow monies
for a down payment however.
The Veteran can receive gift or grant
monies for the entire amount to cover closing costs.
The seller can pay all or part of the
closing costs associated with the process and closing of the mortgage.
Eligibility requirements vary depending
on when and how you served. Click Eligibility
Chart for all the info.
I can only use my VA benefit for my
Not true! Once the current VA loan
is paid off, another VA loan can be originated. The VA Funding
Fee will be higher if there is no down payment but
another home can be purchased with no money down!
The Seller won't accept my offer
because he/she has to pay the points.
Not true! Even
though the Seller in a VA transaction is allowed to pay for all costs
associated with the sale, there is no longer a requirement that the
Seller must pay any points for the Veteran's mortgage loan.
I can only buy a house up to $240,000.00 and still use my VA benefit.
Not true! In fact,
due to recent legislation, you can now borrow up to $417,000.00 with
no down payment (including any financed VA Funding Fee) as long as you
have full eligibility.
My Spouse's income can't be used to
help qualify for the home we want.
Not true! A spouse's income can be used as
long as it is stable and likely to continue. (like any other
loan) Even Common Law marriage is recognized for these purposes.
I cannot let someone assume my VA
mortgage because they are not a veteran.
Not true! Anyone can assume a VA loan as
long as they are considered credit worthy and qualify for the
payments. The only catch is that if a Non-Vet assumes a VA loan,
a portion of the Veteran's eligibility will remain tied to the loan
until it is paid off. If another Veteran assumes a VA loan, the
new Vet's eligibility (as long as it's sufficient) will be substituted
for the original Vet's eligibility. Therefore, the original
Vet's eligibility is restored and they can purchase another home with
a VA guaranteed loan.
I must pay the Funding Fee even
though I have a VA Disability.
Not true! If the Veteran has a qualified VA Disability (at this
writing 30%) they are exempt from paying the Funding Fee.
I have a partial down payment and
I'm told I must still pay the entire Funding Fee.
Not true! If the Veteran can put down at least 5% of the
Purchase Price/Appraised Value, then the Funding Fee is reduced.
This would also apply if you are a subsequent user of the VA Benefit
or a Rerservist or National Guardsman.
I don't have a full two year's of
service so I'm told that I'm not eligible.
Not true! There are a number of events where the two year
requirement is not needed.
Chart for additional info.