With the 4th of July bracing upon us, it becomes one of the best possible times of the year to discuss the ins and out of VA loans.
VA loans are available for active duty personnel who have 90 days during war time or 181 or more continuous days during peace time. You can also qualify if you have been in service for 24 continuous months, completed 6 years as a member of an active unit, been honorably discharged and retired or had a service connected disability.
Typically, no reserves are required and the seller can contribute closing costs, pre-paids and/or points concessions of up to four percent (4%) of the purchase price.
There is a VA funding fee (2.15% of the loan for first time users and 3.3% for multiple uses), which can be financed, paid in cash or paid by the seller. The fee for Reserves/national Guard is 2.4% for a first time use and 3.3% thereafter. This fee can be waived for a veteran with a disability or surviving spouse of a veteran who dies in service or from a service connected disability.
VA Loans are 100% financed with a maximum loan amount of $417,000 on all units. It is a pretty good program and it's one you should take advantage of if you qualify.
Please join us for our next blog installment on Monday, July 8, 2013 Please join us for our neighborhood market data on Thursday, July 11, 2013
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