Loan limits are set amounts a qualified Veteran with full entitlement may borrow without a down payment. The VA does have a set limited liability amount which affects the amount of money it lends per person. The basic entitlement for each eligible veteran is $36,000 and USA Home Loans will lend 4 times this amount with no down payment as long as the Veteran receives an approved certificate of eligibility (COE). The Veteran also needs to qualify with regards to income and credit. The property must be appraised by an approved, licensed VA appraiser and the appraised value must be equal to or greater than the sales price of the home.
Do I Qualify?
You may qualify for a VA Home Loan if you meet one or more of the following criteria:
- You have served 90 consecutive days of active service during wartime
- You have served 181 days of active service during peacetime
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
The VA Funding Fee goes directly to the Department of Veteran Affairs. This fee ensures the program keeps running for future generations of military homebuyers by removing any additional burdens off tax payers and veterans. The fee varies depending on the borrower’s circumstances and does not apply to veterans with service-connected disabilities.
VA borrowers can roll the funding fee into their overall loan amount. The VA also limits closing costs for veterans and allows sellers to pay most or all of those expenses. Many of our borrowers purchase a home with no money due at closing.
Loans for Purchase/Construction of Home
Loans to purchase or build a home generally require a funding fee of 2.15% of the loan amount. However, some conditions may apply which would result in a higher or lower fee.
These include the following:
The veteran is using his/her entitlement for a second or subsequent time: 3.30% of the loan amount
The veteran is making a down payment of 5% or more, but less than 10%, of the total purchase price or construction cost: 1.5% of the loan amount.
The veteran is making a down payment of 10% or more of the total purchase price or construction cost: 1.25% of the loan amount.
Loans to Selected Reserve Veterans.
The required amounts for funding fees vary if the veteran served or is serving in the Selected Reserve. In such a case, funding fee requirements are higher.
When taking a loan for the purchase or construction of a home, a Selected Reserve veteran must pay a funding fee of 2.4% of the loan amount, and the following conditions apply:
The veteran is using his entitlement for a second or subsequent time: 3.3% of the loan amount
The veteran is making a down payment of 5% or more, but less than 10%, of the total purchase price or construction cost: 1.75% of the loan amount
The veteran is making a down payment of 10% or more of the total purchase price or construction cost: 1.5% of the loan amount
For an VA IRRRL, a Selected Reserve veteran must pay 0.50% of the total loan amount, which is the same as the required amount for other veterans.
For a refinance that is NOT an IRRRL, the funding fee for Selected Reserve veterans is 2.4% of the loan amount. If a reservist is using his entitlement for a second or subsequent time, the funding fee is 3.3%.
For all Veterans with a valid disability claim with the Department of Veteran Affairs and an approved certificate of eligibility reflecting (Exempt) the funding fee is waived.
For more information or to have your Certificate of Eligibility processed please contact our loan processing department at 888-842-0490 or email us at firstname.lastname@example.org