The Home Mortgage Help Source
By Ron Kerwood


Weekly Update


The Process




VA Loans

(Rough Credit)




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.

The Basics
  • No Down Payment is required. (Up to a total loan amount of $417,000.00 on purchase transactions, higher in some states.)

  • 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.


The Myths

  • I can only use my VA benefit for my first home.
    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.
      Click Eligibility Chart for additional info.