With the tightening of the credit markets, 100% financing is becoming increasingly scarce. There is good news for Veterans of the Armed Aervices and National Guard. Typically 100% financing is still available to a minimum of $417,000 for Veterans.
Currently 100% Financed for qualified Veterans can be obtained at interest rates as low as 5%.* Rates may vary and this is not a commitment to lend.
One of the great things about the VA loan program is that there are limitations on the "junk" fees allowed by the way to be passed on to the borrower. One item of note is that the VA does not regulate the interest rate or discount points on this program. It is important to compare the pricing on the loan, as well as charges by third party providers.
Here are a basic list of allowable and non-allowable closing costs for VA Loans*:
VA Allowable Closing Costs
-Discount Points
-Title exam fee, including tax and assessment search
-Flood Cert.
-EXACT amount charged for appraisal and credit report
-Attorney or Settlement agent fee
-Title insurance policy
-Pest inspection (must be paid for by seller unless veteran agrees in writing to pay for it)
-interim interest
-First Year Hazard Insurance Premium(and flood insurance if applicable)
- Tax and insurance escrows
Non Allowable VA Closing Costs
-Tax service fee
-Application fee
-Document Preparation fee*
-Underwriting fee*
Once again, the VA loan program is a great way to provide financing for Veterans. One other beneift is that there is no monthly mortgage insurance fee, but rather one time financed MIP. Here is a qyuick reference guide for VA loans.
Here is a quick glance at typical VA Funding fees for loans in NJ.
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Purchase and Construction Loans
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Type of Veteran
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DOWN PAYMENT
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Percentage for first time use
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% Subsequent Use
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Regular Military
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None
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2.15%
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3.30%
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5% up to 10%
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1.50%
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1.50%
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10% or more
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1.25%
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1.25%
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Reserves/National
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None
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2.40%
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3.30%
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Guard
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5% up to 10%
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1.75%
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1.75%
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10% or more
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1.50%
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1.50%
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Cash-Out Refinancing Loans
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Type of Veteran
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% First Time Use
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% Subsequent Use
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Regular Military
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2.20%
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3.30%
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Reserves/National
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2.40%
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3.30%
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Guard
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Interest Rate Reduction Refinancing Loans
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First Time or Subsequent
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0.50%
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0.50%
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Either type veteran
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Michael Byrne
908 531 6170
www.refi-fhasecure.com
www.vamortgageassistance.com
*The doc prep fee and u/w fees can be charged to the seller. Charges can vary by state and subject to guideline changes by the VA.
;)
;)
Michael,
Thanks for another very well written synopsis of VA loan and their benefits. Let's keep our veterans informed so they can take advantage of this great program!
Gerry Suarez, Jr.
Your FHA Loan Pro!