FAQ
Frequently Asked Questions
• Buy a single-family home, up to 4 units.
• Buy a condo in a VA-approved project.
• Buy a home and improve it.
• Buy a manufactured home or lot.
• Build a new home.
• Make changes or add new features (like solar power) to make your home more energy efficient.
• No Down Payment as long as the sales price is at or below the homes appraised Value
• No loan Limit with full entitlement if you can afford the loan, VA will back loans in all areas of the country
• Competitive terms and interest rates
• No Private mortgage Insurance (PMI) or Mortgage insurance Premiums (MIP)
• Fewer closing costs
• No Penalty fee for paying off loan early
• Active-Duty Servicemember: Currently on active duty and have served at least 90 continuous days. Note: Active duty includes Active Guard Reserve (AGR) members activated under Title 10 U.S.C.
• Veterans separated from active duty between August 2, 1990 and the present (Gulf War era) must have served:
• 24 continuous months, or
• A full period (at least 90 days) for which you were called or ordered to active duty, or
• At least 90 days if discharged for a hardship, a reduction in force, or for convenience of the government, or
• Less than 90 days (if discharged for a service-connected disability)
• Reserve / National Guard Service member:
• If not otherwise eligible (e.g., with prior active duty or Title 10 or Title 32 service Must complete a total of 6 credible years and ONE of the Following:
• Continue to serve in the Selected Reserve.
• Serve as Active Guard Reserve (AGR).
• Placed on the retired list.
• Transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service.
• The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan.
• First use:
• If your down payment is LESS than 5% your FEE will be 2.15%
• If your down payment is 5% or MORE than your fee will be 1.5%
• If your down payment is 10% or more than your fee will be 1.25%
• After first use:
• If your down payment is LESS than 5% your FEE will be 3.3%
• If your down payment is 5% or MORE than your fee will be 1.5%
• If your down payment is 10% or more than your fee will be 1.25%
• VA-Backed Cash-Out Refinancing FEE RATES:
• First use: 2.15%
• After first use: 3.3%
• Native American Direct Loan (NADL)FEE RATES:
• Purchase: 1.25%
• Refinance: 0.5%
• BY ROLLING FUNDING FEE INTO THE PURCHASE LOAN YOU COULD POTENTIALLY OWE MORE ON THE HOUSE THAN ITS APPRAISED VALUE. THIS IS AN IMPORTANT CONSIDERATION TO KEEP IN MIND
• Seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule covers only some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points.
• Apply for your VA home loan Certificate of Eligibility (COE)
• Look at your current finances
• Choose a lender
• Choose a real estate agent
• SHOP FOR A HOME
• The seller must pay these closing costs (sometimes called seller’s concessions):
• Commission for real estate professionals
• Brokerage fee
• Buyer broker fee
• Termite report (unless you’re using a refinancing loan)
• You (the buyer) or the seller can negotiate who will pay other closing costs such as these:
• VA funding fee
• Loan origination fee
• Loan discount points or funds for temporary “buydowns”
• Credit report and payment of any credit balances or judgments
• VA funding fee
• Loan origination fee
• Loan discount points or funds for temporary “buydowns”
• Credit report and payment of any credit balances or judgments
• VA appraisal fee
• Hazard insurance and real estate taxes
• State and local taxes
• Title insurance
• Recording fee