VA Home Loan Program

The Bellingham VFW Post 1585 had their monthly meeting tonight. Elections of new officers were held and you are looking at (so to speak), at the new Junior Vice President. Thank you... Thank you... yes with my cup of Mt. Dew in hand I was elected! But this blog isn't about self congratulations. I want to talk about VA Loans.

With the number of 100% mortgage loans diminishing, Veterans might want to look into using the VA Loans. You served or are serving our Country honorably so why not take advantage of the benefits offered.

Let's touch upon a couple of points.

1) It's possible to get a 100% mortgage loan because of the VA Guaranteed Home Loan. What this basically does, is guarantee the 20% down payment that banks would of required of you. What does this mean for you? Drum roll please...............Your down payment, to get into a home, comes to Zero Dollars! Normally you would get something like a 80/20 loan, giving you two different interest rates, which would raise your monthly mortgage payment.

2) Funding Fees. This is the cost of getting the VA loan. It is a part of your closing cost. If you are using the VA loan for the very first time, the fee is 2.15%. This is a one-time cost. The fee is reduced if you put some down payment down. Click here to see the Funding Fee Table.

To get started you need to apply with any mortgage lender that participates in the VA home loan program. You will need to get a Certificate of Eligibility. If your lender has access to ACE (automated certificate of eligibility), this can be done in a couple of seconds. Otherwise, you can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.

For more information about the VA Home Loan Program Click here