VA guaranteed home loans are available to current military or qualifying veterans of the US Military to purchase homes with 100% financing at fixed or adjustable mortgage rates.
Call us for the first step in buying a home using your VA eligibility – Obtaining a VA pre-approval. Once you are pre-approved for a VA mortgage, you can then view homes with confidence, knowing what you qualify for and what you are comfortable with in payment.
Paying Discount Points and Origination Fees on VA Mortgages:
Often Veterans will pay an origination fee and discount fee in their closing costs when purchasing or refinancing with a VA mortgage. It is not a good idea to spend too much on extra fees if the borrower expects to have the mortgage for five years or less. Especially on fixed-rate mortgages, it will often make more sense to pay a little higher rate and fewer fees. If a Veteran expects to sell their home within five years because of a relocation or a move up, one shouldn’t pay extra points that give benefits further down the road. We will explain the options of a low cost or no cost VA mortgage to the Veteran. Veterans, along with all borrowers, deserve a mortgage that fits their needs and that is what we offer.
Seller paid closing costs on a VA mortgage:
On VA loans, the seller is allowed to pay up to 4% of the sales price towards allowable items for the Veteran. The total amount of costs paid by the seller must be mentioned in the purchase contract in order for the seller to cover costs. Allowable costs which can be paid by the seller for the buyer on a VA mortgage include:
- All closing costs including items such as lender fees, appraisal, attorney, home inspection, recording fees, pest inspection, etc.
- Pre-paid items such as interim or daily interest, 1st year premium for insurances, reserves for escrows.
- VA funding fee
- Paying off Veteran’s debts to qualify
Because a VA loan will finance 100% of the sales price and costs can be paid by the seller, a Veteran can purchase a home with very little or no money brought to closing. If the Veteran, buyer’s agent, and our team can coordinate the numbers before the final contract, the Veteran can maximize their VA mortgage to their benefit.
VA Funding Fee
For VA loans, unless exempt, there’s a funding or guarantee fee which can be financed over the base loan amount. VA loans have the benefit of having no annual PMI which keeps the monthly payment lower than other types of loans over 80% of the price. Contact us to learn how much your VA funding fee would be or if you are exempt from the fee.