VA Loans Do Not Require a Down Payment; however, these loans still have closing costs and pre-paids associated with them. This is a great loan that does not have monthly private mortgage insurance (PMI) included in the payment. There is a VA Funding Fee that is normally rolled into the loan amount (this fee can be waived with at least a 10% disability rating from the VA). The VA Funding Fee can vary based on down payment and prior usage and is set by Congress.
VA also allows for less-than-perfect credit.
Closing Costs and Prepaids can also be paid by the seller. The amount the seller can pay is currently up to 4% of the sale price. Some lender and title company fees are considered “unallowable fees” for the veteran to pay. The seller normally pays these “unallowable fees” at closing. Please call to get a list of these fees. These guidelines can change as government regulations change.
A Gift from a family member can also be used for all closing costs and prepaids.
This loan is only available to eligible veterans or the surviving spouse of an eligible veteran. Please call us to find out if you are eligible.
With VA and the no down payment option, you don’t have to wait to become a homeowner with a large down payment. It is great to know that you can purchase your dream home with as little as 0% down.
Zero Percent Financing for Eligible Veterans and Repeat VA Buyers
- Financing with some outstanding credit collections.
- Financing if you are in consumer credit counseling (CCCS), must be in for at least 12 months and current on payments.
- Financing three years after a foreclosure (You will lose your eligibility for another VA loan if your foreclosure had a VA financed loan. If there is a balance on this loan and it has not been paid then your eligibility will not be restored).
- Financing two to three years after a Short Sale (some restrictions apply).
- Financing if you are in a Chapter 13 bankruptcy for the past year and paying on time with a minimum credit score of 620 (some restrictions apply).
- Financing two years after Chapter 7 bankruptcy with credit score above 620.
- Loan Terms or length of loans can be 30-, 25-, 20-, 15- and 10-year terms.
These guidelines are constantly being modified, so getting prequalified up front is now more important than ever. Apply today and see what sale price and loan programs are available to you.