What is the VA Funding Fee?
The VA Funding Fee is a one time fee charged up front, and is often bundled into your loan. The fee varies depending on the veterans current situation, and some veterans are even exempt from the VA Funding Fee! For example, for a borrowers first time use, the funding fee is generally 2.15% of the purchase price of the home. For subsequent use, the fee is 3.3%
What are the VA loan limits?
In most counties in the country, qualified veterans can purchase a home up to $453,100 with no money down. Some counties, such as King County, are considered High-Cost Counties. If you’re purchasing a home in a High-Cost County, you may be able to qualify for a higher loan amount.
If you have more questions about high cost counties, give us a call at 360-570-2066.
How do I determine if I am eligible for the VA loan benefits?
In order to determine if you are eligible for a VA loan, you must obtain a Certificate of Eligibility (COE). If you do not have this Certificate, you will need your DD-214 (Certificate of Release or Discharge from Active Duty) and apply using VA Form 26-1880. This process may be confusing and time consuming, so let us help you out! MLS Funding can get your Certificate of Eligibility generated online. For most veterans, we can get this information generated automatically!
Why should I get a VA loan?
There are many advantages to obtaining a VA loan that makes it a far superior option to other loan programs. Most other loan programs require you to carry MI (mortgage insurance) if you put less than 20% down. MI is added on to your monthly payment, and can be very costly over the life of a loan. In lieu of MI, the VA guarantees your loan by charging a one time VA Funding Fee (more on that later). Additionally, VA loans consistently offer lower interest rates than its Conventional counterpart. Finally, the VA guidelines are much less restrictive than other loan programs, making them easier to qualify for.