Eligible Veterans and other homebuyers who qualify for a VA loan are often not required to pay a down payment. Conventional loans typically require homebuyers to settle a 20% down payment. The U.S. Department of Veterans Affairs (VA) has made homeownership more affordable for Veterans in gratitude for their dedication in serving the country. However, Veterans need to settle several one-time expenses when buying a home.
Thousands of disabled Veterans who received a VA-backed home loan will soon receive letters notifying them of impending refunds of funding fees that were erroneously charged. The U.S. Department of Veterans Affairs (VA) normally charges such funding fees to Veterans applying for VA-backed home loans. However, an Inspector General audit of the VA identified thousands of instances where disabled veterans qualifying for exempt status being wrongly charged a funding fee.
Eligible veterans planning to buy a home next year may take advantage of an expanded Veterans Affairs program that may allow them to fulfill their ultimate dream home. This could be a great chance for deserving veterans and their spouses to secure a comfortable lifestyle after serving the country. However, what they may not realize are the fees associated if they wish to avail of the VA Home Loan Guaranty benefit.
A VA loan is a type of mortgage backed by the U.S. Department of Veterans Affairs and is available to current service members, veterans and eligible surviving spouses. VA loans offer several advantages, including no private mortgage insurance (PMI) and no down payment required. When qualifying for a VA purchase or refinance, you need to meet certain minimum residual income requirements based on your requested loan amount, where you will be buying, and how many people will live in the home. Here’s how it works: