VA Guaranteed Home Loans are available to veterans with at least three months active, honorable, service or six years of Reserve or National Guard service. They are also available for active duty members under certain circumstances.

VA does not charge for mortgage insurance for taking a loan with less than 20 percent down payment like conventional financing. There is, however, a funding fee charged to the veteran that is, in many ways, similar to up front mortgage insurance charged by FHA. This fee, for 100 percent financing is 2.15% of the loan amount for first use by an regular military service veteran. Subsequent usage is at 3.3%. Reserves are higher at 2.4% for first usage.

Now the interesting thing is that many veterans are never told that if they put a down payment on the home, this funding fee is reduced. For regular military, the funding fee on a 95% loan is only 1.5% and 1.25% on a 90% loan. Reserve members pay 1.75% & 1.5%, respectively.

Additionally, if the member has a 10% or greater service connected disability, they are exempt from paying the funding fee. Even if they are paying the funding fee, it is financed in the loan amount. For more information about VA loans, contact me at 541-342-7576/541-221-3455 Cell or e-mail me. I am a Vietnam era veteran and am proud to help my fellow service members with this outstanding program. Don’t let this benefit pass you buy. You might even be eligible for the first time home buyer tax credit if you haven’t owned a home in the past three years.

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