A veterans affairs loan is a loan that is granted to United States veterans and can be applied for through any private bank, credit union or mortgage company. In order to be eligible for a VA loan you must:
- Have served at least 90 days or active duty during war time
- Have served a least 181 days of active duty during peacetime
- Have served at least 6 years in the National Guard or Reserves
- Have served at least 90 days under Title 32, with at least 30 of those days being consecutive
- Be the spouse of a service member who passed away while serving or from a service related injury
(all requirement information derived from Veterans United)
VA loans do not require mortgage insurance or a minimum down payment. Instead home buyers with a VA loan will pay a one time Funding Fee which is normally about 1.25% to 3.3% of the home. The fee price is dependent on how many VA loans you have used in the past, whether you are buying or refinancing, and how large your down payment is. Like mentioned before a VA loan does not require you to put anything down on your home or pay for mortgage insurance, but if you do make a down payment, the more money you put down the smaller your funding fee will be. The funding fee protects lenders against loss if the mortgage defaults. So in simple terms, the funding fee is a one time, upfront, mortgage insurance payment.
Information support and collaboration with our preferred lender John Gilfedder. Contact John at: (720) 285-9854 | john.gilfedder@elevationscu.com
