Have you served in the US military or are you currently serving in the US military?
Do you think about owning a home?
Are you thinking about an FHA loan?
Did you know that a VA loan may cost you less money?
You can purchase a home with a price tag to $417,000, with no money down. You will pay the VA funding fee which can be wrapped into the loan amount, so if you are only planning on living in the home for three or four years, this is the way to go. You will never pay back the entire VA funding fee.
If you are thinking about an FHA loan and you are a veteran, think again. FHA has a 3.5% down payment requirement and the MIP or mortgage insurance premium must be paid now for the life of the loan. MIP can add a substantial amount to your monthly payments, often $100 or more. To calculate the MIP, check this link: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/comp/premiums/sfpcalc
If you are a disabled veteran, there are grants available to help modify a home. Your lender and Realtor® should help you with that process.
With a VA loan, you pay the VA funding fee- 2.15% for the first time VA user who is a veteran or Active Duty and 2.40% for National Guard or Reservists. For second time users, the funding fee jumps to 3.30% for all categories. This funding fee can be rolled into the amount of the loan. There is no mortgage insurance premium, but the mortgage will include taxes and interest.
You can put money down if you desire using a VA loan. You don’t have to purchase with zero down. But for those of you who are cash poor, you can purchase with a VA loan and request that the seller contribute to your closing costs. You might have to pay full price, but rather than going to the closing table with thousands of dollars in closing costs, you may find that the seller will pay up to 3% of your closing costs and you will be writing a check for a few hundred, not several thousand dollars.
Naturally you will have to meet the requirements of the lender and it is best to use a local lender. A Local lender knows the areas where you are considering purchasing, and often can be of more assistance than a lender who is an internet lender or out of area. If you want my special checklist, What to Bring to the Lender, sign up for it below. The lender you use should have a good relationship with your Realtor® because they will work together and if there are problems, often the lender and Realtor® can iron them out.
If you are applying for a VA loan, you will need your Certificate of Eligibility. If you don’t have it, you can order it from VA or request it on line at: https://iris.custhelp.com/app/answers/detail/a_id/1080
I personally thank you for your service to this great country. Thank you!