No Money Down VA Loans

NO MONEY DOWNVA LOANS

What Are VA Loans?• VA home loans are a special benefit available only to

current and ex-members of the U.S. Military.

• VA home loans are eligible for some of the lowest interest rates on the market today.

• VA home loans are “no money down” home loans.

For More Information on VA Loans, contact us here.

http://valoansfinance.com/

What does “No Money Down” mean versus a traditional

mortgage loan?

• There is no payment required to obtain a VA Loan, making homeownership more accessible.

• Traditional mortgages or home loans require as much as 5% to 20% of the purchase price as a down payment on a home.



What does “No Money Down” mean versus a traditional

mortgage loan?• A traditional mortgage on a $200,000 home often requires a 10,000-$20,000 down payment, which can be difficult to come up with.

• Even people who meet the credit and income requirements for a traditional mortgage loan often have trouble finding the money for the down payment.



No Money Down Doesn’t Mean No Cost

• There are still upfront costs to the buyer, even with a VA Loan.

• Buyers will still have to pay a VA Funding Fee and an Origination Fee

• Buyers may have to pay Discount Points and Closing Costs.



What is the VA Funding Fee?• The VA Funding Fee is a

percentage of a loan amount based on the purchase price that is paid to the Veteran’s Administration to help defray the program costs.

• The VA funding fee can be paid in full at closing or financed into the loan.



What is the Origination Fee?

• The Origination Fee is 1% of the purchase price of the home.

• The Origination Fee is paid to the lender as compensation and covers the cost of underwriting and processing the loan.



What is the Origination Fee?

• If the lender charges an Origination Fee, they cannot charge the buyer escrow or closing fees, additional underwriting or processing fees, pest inspection fees, mortgage broker fees, or attorney fees other than for title work.

• If the lender skips the Origination Fee they can charge for those items on a per item basis.



What Are Discount Points?

• Discount Points are paid by the buyer to reduce the interest rate on the loan.

• Buyers have the option of paying no points, one point, or two points when choosing an interest rate.



What Are Closing Costs?

• Closing costs include things like the appraisal and home inspection, credit report, taxes, title, attorney fees, insurance, and escrow deposit.



Veterans Do Not Pay For:

• Veterans are not allowed to pay for termite or pest inspections, realtor commissions, mortgage broker fees, loan prepayment penalties, or attorney fees that are not related to title work.



Avoiding Fees and Reducing Closing Costs

• Buyers can structure their VA Home Loans so that they do not have to bring money to closing.

• Loans can be structured so that the seller pays for many of the closing costs.

• Sellers are allowed to pay up to 4% of the purchase price, and many are willing to do it.



VA Loans Make Home Ownership Affordable

• VA Home Loans dramatically reduce the amount of initial capital needed by homebuyers to get a loan and close on a house

• VA Home Loan are not “no-cost.”

• Traditional Home Loans require 6% to 30% of the purchase price to be paid at closing.



VA Loans Make Home Ownership Affordable• VA Home Loans require between 0% and 5% of the purchase price to be paid at closing, depending on how the loan is structured.

• VA Home Loans help our Veterans and military personnel get into a home sooner than they may think is possible.

VA Loan Mortgages is an FDIC insured lender that works exclusively with Veterans and active duty service men and women. The VA approved lender offers VA loan finance,VA loan refinance, IRRRL and streamline refinance options. Visit www.valoansfinance.com/va-loans/ to learn more about VA Loan Mortgages.

http://www.valoansfinance.com/va-loans/

No Money Down VA Loans

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