Buying Considerations when using a VA Home Loans

More than 29 million veterans and service personnel are eligible for VA home loan financing.  However, before the veteran begins the home buying process, there are several considerations that he or she should take into account:

• In most cases, the veteran can finance up to 100% of the sales price and no down payment is required.

• The maximum loan amount may not exceed $240,000, the sales price, or the appraised value (as determined by a VA appraiser)...whichever is less.

• VA home loans do not require the veteran to pay monthly mortgage insurance

• VA limits which closing costs the veteran is allowed to pay.

• VA home loans are assumable, subject to VA approval.

• Veterans have the right to prepay his or her VA home loan without penalty.

• VA requires a funding fee that can range from 0.5% to 3% of the loan amount (excluding disable veterans). 

• Veterans may be eligible for second or subsequent use of the VA home loan benefits.

You may want to review other considerations mentioned here.