If there is one standard reason given for not considering a VA loan over other options, it's about the VA funding fee. So, "drop the mic"! It's time to crush a few misconceptions! If you are qualified, keep reading. If your are not sure, click VA lOAN OVER VIEW.
First, there is no better NO DOWN. However, $0 down on a VA interest rate trumps any other options I know of - at least as of now.
So, what about a 5% down? Well, let's start by looking at a chart explaining VA funding fee charges:
5% down payment on a conventional loan is far better than a minimum down (3.5%) FHA loan with an upfront and monthly MI cost. Yet, 5% down on conventional is still going to require MI that is greater than the VA funding fee. PLUS you have (typically) better rates on a VA loans and MUCH easier qulificaiton criteria.
So, what about 20% down? When would VA be a better option than conventional?
REMEMBER! VA DISABILITY = NO FUNDING FEE!
Call your Colorado Home Lender, or a licensed lender in your area for more details.