VA Loans

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.

Benefits of VA Loans

• You can buy a home with no money down.
• You can refinance your home up to 100% of the value of your home.
• You never have to pay PMI (Private Mortgage Insurance).
• Sellers can pay your closing costs.
• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
• If you already have a VA Loan you might be eligible for a VA Streamline Refinance aka an IRRRL.
• Disabled Veterans may qualify for a waiver of the Funding Fee if they receive any disability payments from the VA or if they are considered to be at least 10% disabled, are a Purple Heart recipient, a surviving spouse of a servicemember who died in the line of duty.

Who is eligible for a VA Loan?

As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.

You may be eligible for a VA loan if any one of these statements describes you:

• I served 181 days during peacetime. (Active Duty)
• I served 90 days during wartime. (Active Duty)
• I served 6 years in the Reserves or National Guard.
• I am the spouse of service member who was killed in the line of duty.
• I currently receive disability payments from the VA.

What is the VA Funding Fee and is it required?

Yes, unless you have a 10% or greater disability rating from the VA, are a Purple Heart recipient, a surviving spouse of a servicemember who died in the line of duty. You may be eligible for a refund of the VA funding fee if you are awarded VA compensation for a service-connected disability. If you think you might be eligible for a refund, please call you VA Regional Loan Center at 877-827-3702.

How much is the VA Funding Fee?

It depends on several factors including: Whether you are Active Duty, Retired, Guard or Reserve and whether you this is a first time use, subsequent use, or a cash-out refinance or IRRRL, as well as how much of a down payment you are putting down. The fee can range from as little as .50% up to 3.6% of the loan amount. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your particular situation.

	If your down payment is:	Your VA funding fee is:
First Use	Less than 5%	2.3%
	5% or more	1.65%
	10% or more	1.4%
After first use	Less than 5%	3.6%
	5% or more	1.65%
	10% or more	1.4%

 

Rates for Veterans, Active-duty service members, National Guard and Reserve Members are shown in the table below:

Fees for VA-Backed Cash-Out Refinancing Loans

First use:	Subsequent Use
2.3%	3.6%

Other VA Home Loan Types

Loan Type	VA Funding Fee
Interest Rate Reduction Refinancing Loans (IRRRLs)	0.5%
Manufactured Home Loans (not permanently affixed)	1%
Loan Assumptions	0.5%
Vendee Loan, for Purchasing VA-Acquired Property	2.25%

A VA Streamline Refinance is a refinance option that is available if you already have a VA mortgage and you want to lower your interest rate with little or no out-of-pocket closing costs. You do not have provide bank statements, W2s, job verification or paychecks and we do not require an appraisal.

Do I have to pay the VA Funding Fee out of pocket?

No, you can include the VA Funding Fee in your loan and pay the funding fee over the course of your loan.

Do I still have to pay other normal closing costs like Appraisal, Title and Escrows?

Yes, however with a VA loan if you are purchasing a new home the seller can pay for all or part of your closing costs.

What is a VA Streamline Refinance?