• Veterans Affairs (VA)

  • If you are a veteran of the US Military, the VA loan is a perfect fit for you.  It is the only other 100% financing loan allowed and has SO many potential benefits to you as a potential homebuyer.

    The Good:

    - NO down payment required!  You can finance up to 100% of the appraised value of the home.

    - You can negotiate with the seller to payoff some of your personal debts.  This is unheard of with any other loan, but for example, let’s say you owe $8,000 on your car loan and want that debt to go away.  You can negotiate with the seller to have them pay that debt off for you at closing. Good bye car payment!

    - Seller can pay up to 6% of your closing costs in the form of seller assistance.

    - NO mortgage insurance.  That's right.  Even with NO money down, 100% financing, there is NO mortgage insurance.

    - Very low interest rates since it is a government loan.

    - Debt to Income Ratio limit of 56.999% (varies)

    The Bad:

    - Funding fee of 2% charged and financed into the loan by the government

    - You must have your Certificate of Entitlement (COE) also known as the DD-214.  This shows that you are eligible for the entire amount of your VA Entitlement.

    - The home must pass a VA inspection, which is similar to an FHA or USDA inspection regarding things like chipped and peeling paint.

    - Unlike other loans which don't take other expenses into account, VA loans require you to qualify with residual income to ensure that you can comfortably make your payments each month.  VA loans have the lowest rate of default of any mortgage loan product available.