A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.
As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.
Yes, it is almost always required. It is a fee paid directly to the Department of Veteran's Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.
| Type VA of Loan | Down Payment (Loan to Value) |
Funding-Fee 1st Time Use |
Funding-Fee Subsequent Use |
|---|---|---|---|
| Purchase or Construction |
100% LTV (0% Down) to 95.001% LTV (4.999 Down) |
2.15% | 3.3% |
| Purchase or Construction |
95% LTV (5% Down) to 10.001% LTV (9.999 Down) |
1.50% | 1.50% |
| Purchase or Construction |
90% LTV (10% Down) Up to $4,000,000 Purchase |
1.25% | 1.25% |
| IRRRL Loans | 10% and Up | 0.50% | 0.50% |
| Cash Out VA Loans | N/A | 2.15% | 3.3% |
| VA Loan Assumptions | N/A | 0.50% | 0.50% |
These materials are not from HUD, VA, or FHA and were not approved by HUD or any other government agency.