VA Mortgage….0 down Paymen

What a great, sometimes, under utilized program. A VA mortgages still allow borrowers to finance up to 100 % of the home’s value and purchase up to  $417,000, with no down payment. Lenders do not require private mortgage insurance due to the fact the loan is government insured. There is however a VA funding fee that is financed in the mortgage. This is so that the veteran contributes toward the cost of this benefit. A first time benefit user with no down payment will incur a 2.150% funding fee. For a veteran using the benefit a second time the fee is 3.30%. The fee lowers incrementally for borrowers with down payments.

VA mortgages usually have more flexibility than conventional loans with lower credit scores, bankruptcies and collection accounts. For VA borrowers that qualify marginally under debt to income ratio, the VA accepts a residual income approach.

On a purchase loans sellers may contribute up to 4 % of the seller’s actual closing costs and pre paids.

Other than active and retired military, National Guard, and Reserves, others that may qualify for this VA mortgage benefit are

Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.

Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.