The Department of Veteran Affairs provides a guaranty, backed by the U.S. government, on VA loans made by any qualified VA mortgage lender protecting them from loss if the Veteran should default on the loan throughout the United States and its territories.
The Veteran Affair's (VA's) Home Loan Program is for active duty military personnel, veterans and certain members of the reserves and National Guard.
The VA loan program provides an outstanding product with benefits for those individuals who have served or are actively serving and meet the VA loan requirements. VA mortgage loans may be used for your primary residence only.
The basic entitlement for a VA mortgage loan is $36,000. For mortgage loans that exceed $144,000 on a purchase or construction, additional entitlement may be available up to an amount equal to 25 percent of the Freddie Mac conforming loan limit for a single family home.
The conforming mortgage loan limits for 2013 are $417,000 ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans can receive a no down payment purchase up to these loan limits.
The veterans affair fee is currently just over two percent on no down payment loans for a first-time use. The funding fee for second time users who do not make a down payment is over three percent.
The basic idea behind the higher fee for second time users is based on two reasons. One is the fact these veterans have previously used their benefit once already, and second they've had a chance to accumulate equity or save money towards a down payment on their next house.
|Percent Down||Veteran Fee||National Guard Reserve Fee|
|0% to 4.99%||2.15%||2.40%|
|5% to 9.99%||1.50%||1.75%|
|10% and up||1.25%||1.50%|
For 2013 VA county mortgage loan limits for high-cost counties