To pay or not to pay? The VA Loan Funding Fee

To pay or not to pay?

Jul 19, 2012, 1:41 AM Updated: Jul 22, 2012, 8:36 pm

That is the question and why I am singing “I’m a Yankee Doodle Dandy.”

According to the latest research, over 27 million veterans and service personnel are eligible for VA financing. The uniqueness of VA financing makes it an exceptional option for military families looking to purchase a home.

VA mortgages are economically designed for the specific challenges facing service members and their families. In most cases, advantages include no down payment or monthly mortgage premium, a maximum loan up to 100 percent of the established value of the property and the possibility of an assumable mortgage.

For VA guaranteed loans, the law requires the borrower to pay the VA Loan Funding Fee.

A veteran is asked to pay the VA Funding Fee as a contribution toward the cost of this unique benefit.

To obtain a VA loan, the law requires that:

• The applicant must be an eligible veteran who has available entitlement.
• The loan must be for an eligible purpose.
• The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan.
• The veteran must be a satisfactory credit risk.
• The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support. An experienced mortgage lender will be able to discuss specific income and other qualifying requirements.

Basic home eligibility requirements can be found at homeloans.va.gov.

You can hear Lisa the Lender with Amerifirst Financial every Saturday at 3:00 p.m. on That Real Estate Show on News/Talk 92.3 KTAR.