Veterans Administration offers veterans the opportunity to purchase a home with no money required for a down payment.  Eligibility is determined based on the time in service and borrower must have been discharged under conditions other than dishonorable. 

The VA required mortgage insurance is called a funding fee which recently was changed on November 22, 2011.  First time use veterans purchasing a home with no downpayment will pay 2.15% and mulitiple users with no downpayment pay 3.3%.  If a downpayment of 5% or greater the VA funding fee is 1.50% on purchase transactions.

If veteran has a VA recognized disability the funding fee is waived.  If the veteran makes a downpayment, which is not required on conforming loan amounts up to $417,000, then the funding fee is reduced.  VA allows the funding fee to be financed into loan amount.

This is an owner occupied only program; although there is a provision for refinancing certain properties if once owner occupied.  This is called a VA interest rate reduction refrinance.  The funding fee on this loan is .50%.

Certain credit requirements will need to be met to qualify for the VA home loan.

Property taxes and homeowner's insurance are required to be included in the monthly payment.

Loan amounts are allowed up to 1 million or jumbo financing at lower rates than normal non-conforming.

Click here to see if you qualify.

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